Issue - meetings

Lending for Capital Projects

Meeting: 15/01/2018 - Cabinet (Item 9)

9 Council Loans Framework for in-borough Capital Projects PDF 178 KB

This report seeks authority to establish a capital advances lending framework. Under this framework, loans will be available to part-finance the delivery of in-borough capital schemes that produce outcomes in line with the Council’s aims and objectives.

Additional documents:

Appendix 1 - Voluntary Loan Facility Controls, item 9 PDF 43 KB

Decision:

RESOLVED that:

9.1 The establishment of a framework for the provision of senior loans to:

· Joint ventures to which the Council is party;

· Council subsidiaries; and

· Third party organisations in which the Council has no direct financial interest.

be approved, subject to conditions (the ‘framework’) outlined in the report;

9.2 Theadvance of loans to organisations as set out above, be delegated to the Chief Finance Officer in consultation with the Deputy Leader of the Council;

9.3 The list of voluntary loan controls included with Appendix 1 of the report, be approved;

9.4 The daily monitoring and administration of loans be delegated to the Council’s Chief Finance Officer;

9.5 The authority to procure and award a contract for specialist advice on loans pool management, if required, be delegated to the Chief Finance Officer; and

9.6 A loan facility of up to £40m be made available to the South Kilburn (Queen’s Park 2) Council-proposed Joint Venture with LondonNewcastle.

Minutes:

Councillor Margaret McLennan, Deputy Leader of the Council, introduced the report which sought authority to establish a capital advances lending framework. She stated that responsibility for the advance of loans and administration of the loans pool would be delegated to the Chief Finance Officer in consultation with the Deputy Leader of the Council.

Councillor McLennan stated that under this framework, loans would be available to part-finance the delivery of in-borough capital schemes that produce outcomes in line with the Council’s aims and objectives. She noted that, for the avoidance of doubt, this was about providing an option to provide debt finance to schemes that were already part of the council‘s approved capital programme.

Councillor McLennan stated that agreeing the recommendations within the report would therefore provide a structured approach to this aspect of financing in the capital programme, with the proper governance and clarity of decision making required for such transactions and a framework for financial monitoring and control.