The document discusses various funding tools and mechanisms for local governments and public sector projects, including sources of public and private funding, methods of repayment, and types of joint ventures. It provides details on tools like prudential borrowing, municipal bonds, tax increment financing, joint European support programs, and forming joint venture development vehicles or local asset backed vehicles to pool resources. The goal is to present an integrated "revolve" approach to financing large projects and programs using different available income streams, asset values, borrowing powers, and public-private partnerships.

1. Funding Tools Andy Pack GVA Financial Consulting 15 th December 2011 gva.co.uk Coast to Capital LEP

2. Andy is a Director with GVA Financial Consulting Expert in public sector advisory with particular specialism in structured solutions with public bodies with in excess of 15 years experience Key areas of expertise Asset portfolio review Local Government Finance Efficiency Structured solutions Strategic Advice / Governance Regeneration Organisational Design Andy Pack Director 07808 482750 [email_address] Who Are We GVA are the leading property advisors to the public sector. We are a market leading team of specialist financial, property, economic and strategic advisers, providing bespoke advice across all aspects of the built environment including infrastructure and innovative approaches to funding and development

3. Finance Toolkit Sources of Funding Repayment of Funds Joint Venture Mechanisms Revolve – An Integrated Approach Agenda

4. Sources of funds Public Sector Prudential Borrowing Public Works Loan Board (PWLB) Municipal Bonds Sale/Lease and Leaseback Municipal Infrastructure Bank Capital Disposals (sale/lease and leaseback) Private Sector Private Sector Infrastructure Investment Funds Private Sector, Opportunistic, Private Equity, Pension Funds, Sovereign Wealth Funds Banks

5. Sources of funds Public/Private Sector Joint European Support for Sustainable Investment in City Areas (JESSICA) Growing Places Fund Regional Growth Fund Green Investment Bank

6. Repayment of Funds Tax Increment Finance (TIF) Localisation of Business Rates Community Infrastructure Levy (CIL) Business Improvement Districts (BID’S) Charge over Land mechanism (CLM) Loan Guarantees New Homes Bonus Enterprise Zone funding – Business Rates subsidy / Ability to capture future business rates

7. Joint Venture Mechanisms/Other Joint Venture Development Vehicles Local Asset Backed Vehicle (LABV) Local Authority Asset Backed Joint Venture investment partner Public Sector Partnership Operational Joint Venture Local Authority Development Company

8. An Integrated Approach… Revolve

9. Conclusion Change in the financial markets / collapse of the traditional models have caused more innovative thinking Smaller projects have continued to be funded by banks But integrated solution needed for large scale projects / programmes to knit together Income streams Value of assets Borrowing powers Council as developer / partner Use powers Public sector partnerships are key LG Health LEP Police Fire Others