Cabinet Members will answer questions from members on their Portfolios.
Minutes:
1. Councillor Mrs N Woollatt asked the Cabinet Member for Finance: Does this authority have any LOBO (Lender Option Borrower Option) loans and if so what are the terms?
The Cabinet Member for Finance stated that a LOBO loan (Lender Option Borrower Option) was typically taken out for lengthy period - e.g. 40 - 70 years. The initial interest rate is fixed and usually offered at a rate that under cuts the prevailing rate being offered to Councils by the PWLB. However, the lender has a future option to increase this interest rate at pre-determined times (usually every 5 years). The borrower then has the "option" to decide whether it will accept the new rate or repay the entire loan. The Council would also be faced with a "break penalty" if it chooses to exit the loan at an early stage. These are often considerable amounts. The complication and therefore pricing uncertainty makes it very difficult to assess at the outset how to value these loans.
Currently there are around 200 Councils with circa £15bn of LOBO loans - allegedly some of these loans are now based on interest of around 7%!
Mid Devon District Council has no LOBO loans and currently only borrows at fixed rates of interest from the PWLB. We have 5 loans totalling £47.3m - most of this principle sum relates to the £46.6m we borrowed to purchase our Housing stock.
2. Councillor J L Smith asked the Leader: following two recent events it is becoming ever apparent that there is a shortfall in the number of police officers in Mid Devon, specifically, the criminal damage to the flower beds in Tiverton and the release of a driver following a positive breath test in Cullompton. I have little doubt that these instances further undermine the confidence of the Mid Devon residents in the ability of Devon and Cornwall Police to provide an effective service. Will the Leader of the Council write to the Chief Constable of Devon and Cornwall Police asking what assurances he will give and what measures he will take to guarantee that in the future the residents of Mid Devon will be provided with an effective and robust front line police force to ensure their safety.
The Leader stated that he would take on board the concerns and would write to the Chief Constable and relay any response to all Members.
3. Councillor Mrs J Roach asked the Leader when he intended to hold the State of the District Debate.
The Leader stated that he had asked for an item to be put on the next agenda for a discussion to take place with regard to the subject of the debate. He asked that Members come forward with ideas before the next meeting.
4. Councillor F W Letch asked the Chief Executive the meaning of silo working as identified in the Communication Strategy discussed earlier in the meeting.
The Chief Executive explained that silo working meant that departments of the Council did not talk to other departments.
5. Councillor N A Way addressing the Leader stated that he was pleased that partnership working was being discussed with other authorities, specifically North Devon with regard to ICT. Could Members pleased be kept informed of other of further discussions with other authorities?
The Leader stated that Members would be kept informed of any future discussions with regard to this matter.
The Cabinet Member for Community-Well-Being outlined an event that had taken place between Mid and North Devon ICT staff to which he had attended.