Decision details

Loan Disaggregation

Decision status: For Determination

Is Key decision?: Yes

Is subject to call in?: No

Decision:

RESOLVED:

 

KEY DECISION

 

That the Executive:

 

a)    Noted the disaggregation of the former County Council loan book based on the agreed methodology of Council Tax base 2020/21 and the novation of individual loans to reflect this split as closely as possible, including the consideration of the repayment requirements.

 

b)    Approved an equalisation payment of £193k to West Northamptonshire Council based on the proposed split of the loan book.

 

c)    Delegated authority to the Executive Member for Finance and Transformation in consultation with the Executive Director of Finance and the Monitoring Officer to finalise the novation of the loans to North Northamptonshire Council.

 

 

Reasons for Recommendation are set out in greater detail within section 5 of the report, but can be summarised as:

 

·         To note proposed split of the loan book of the former County Council to North Northamptonshire Council and West Northamptonshire Council and based on the detailed review in section 5, recommend the equalisation payment to West Northamptonshire of £193k.

 

Alternative Options Considered:

 

·         The proposed distribution of the former County Council loans was made to closely reflect the agreed proportionate split of 44.64% and 55.36% between North Northamptonshire Council and West Northamptonshire Council respectively.  The value of each loan, repayment timeline and interest rates were considered in order that each Authority had a comparable and fair distribution.  Alternative options would be to alter the individual loans allocated to each Local Authority which would affect the profiling and any settlement payment.  The allocation of the loans, that form the basis for this report, has been agreed with West Northamptonshire Council (S151 Officer).  There is, therefore, no alternative option proposed. 

 

Publication date: 19/05/2022

Date of decision: 19/05/2022

Decided at meeting: 19/05/2022 - Executive

Accompanying Documents: