Policy amendments to support new funding agency
Bay of Plenty Regional Council proposes to support the
setting up of a local government funding agency and, as part of
that, Council was required to amend the Investment Policy and
Liability Management Policies within the Ten Year Plan
These amendments were adopted at Council's meeting on Thursday
25 August 2011.
Details of the consultation process
undertaken are below.
Have your say on Regional Council's plan to
be part of a new funding agency
Bay of Plenty Regional Council is proposing to join with
Government and other local authorities to establish a new funding
agency - the New Zealand Local Government Funding Agency Ltd
Why is the funding agency being set up
and why is the council involved?
The funding agency is being set up so that local authorities can
borrow money at lower interest margins than otherwise
The Council is proposing to join the funding agency as a
principal shareholder. To do so we will be required to make an
initial capital investment. This is expected to be up to $2.5
million. We expect to receive a return on that investment.
The Council will be required to guarantee its obligations and
the obligations of other local authorities under the funding
agency. The guarantee provides additional comfort to lenders that
there will be no long-term default. The guarantee will only be
called if numerous safeguards prevent a default fail. This is
The Council has agreed in principle to join the funding
What information is available?
In addition to the Statement of Proposal we have produced a
Summary and a supporting Information Memorandum. Audit New Zealand
has produced an opinion report.
You can download them here:
They are also available for viewing at our public offices
- 5 Quay Street, Whakatāne
- 1125 Arawa Street, Rotorua
- 6 Rata Street, Mount Maunganui
Alternatively email us firstname.lastname@example.org or phone us
on 0800 884 880 to get sent a copy.
The submission process
The closing date for submissions was 4.30 pm Wednesday 27 July
The Central Government will
consider proposed legislation that would allow the establishment of
the LGFA. Should the required legilsation be enacted Council
will consider joining as a foundation member.