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 2009-2019.
These amendments were adopted at Council's meeting on Thursday 25 August 2011.
- Download the amended Investment Policy (190 KB, pdf)
- Download the amended Liability Management Policy (166 KB, pdf)
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 (LGFA).
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 available.
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 highly unlikely.
The Council has agreed in principle to join the funding agency.
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:
- Summary of Statement of Proposal
- Statement of Proposal
- Audit New Zealand Opinion
- Supporting Information Memorandum
They are also available for viewing at our public offices at:
- 5 Quay Street, Whakatāne
- 1125 Arawa Street, Rotorua
- 6 Rata Street, Mount Maunganui
Alternatively email us email@example.com 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 2011.
What happens next?
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.