Purpose

To seek approval for a revision
to the MRP Policy for 2023/24

Content

RESOLVED – That Council be recommend to approve the
revisions to the MRP Policy as:

 

(i)         Option 3 (Asset Life Annuity Method) to
be used for calculating MRP on Council Fund outstanding supported and
unsupported borrowing as at 31 March 2023. This represents a change from Option
3 (Asset Life Straight Line Method) as approved by Council on 15 February 2023.

 

(ii)       Option 3 (Asset Life Straight Line Method
50 years) to be used for calculating HRA MRP on outstanding unsupported
borrowing incurred prior to 1 April 2021 as at 31 March 2023. This represents a
change from Option 3 (Asset Life Straight Line Method 25 years) as approved by
Council on 15 February 2023.

 

(iii)       For Invest to Save
loans, Option 3 (Asset Life Annuity Method) to be used for calculating MRP.
This is a change from the previous MRP Policy whereby MRP on Invest to Save loans was determined by the actual loan repayments.

 

Reason for decisions

 

To enable the Council to make a prudent provision for
the repayment of debt.