Anglia Revenues and Benefits Partnership Ltd Loan Funding
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Recommendation to provide loan funding to ARPT Ltd
That Council be recommended to support current service level by providing loan funding for working capital to the total value of £64,000 to be drawn down as required by ARPT Ltd at the current rate achieved by investing in our normal ‘call’ account; subject to Forest Heath District Council agreeing to the same terms on the remaining £36,000 of loan funding to be provided by them, subject to their committee procedures; and
That Council be recommended to amend the Treasury Management Policy to include loans to companies in which the authority holds an interest.
Reasons for the decision:
Recommendation 7.1 was setting the loan at the standard ‘call’ account rate which would provide further support to ARPT Ltd which was currently in its set up phase.
The shareholder loan agreement sets out the loan commitment of both partner authorities to accord with the funding split 64:36.
The Treasury Management Policy currently does not cover for the provision of loans to related entities. This would need amendment if recommendation 7.1 is adopted.
Alternative options considered:
Support current service level providing loan funding for working capital to the total value of £64,000 to be drawn down as required by ARPT Ltd at the current rate achieved by investing in our normal ‘call’ account. This would have no adverse impact on authority finances.
Reject the recommendation to provide loan funding.
Report author: Rachel Beswick
Publication date: 16/05/2007
Date of decision: 14/05/2007
Decided at meeting: 14/05/2007 - Cabinet
Effective from: 25/05/2007