Issue - meetings

To consider the half yearly Treasury Management performance.

RECOMMENDEDthat the Treasury Management Performance for the year to date and the prudential indicators be noted.

Councillor T. Schofield, Executive Member for Finance, explained that the purpose of the report was to provide an update on the performance of the Council’s treasury management activities. The Executive was informed that the report of the Director of Finance and Organisation formed part of the formal reporting requirements of the CIPFA Code of Practice on Treasury Management.

The Executive Member for Finance highlighted that the Treasury Management performance, up to Period 6, showed, overall, the projected outturn was better than budget. This was primarily due to the borrowing facility not being utilised. 

Councillor Schofield went on to provide an update on the Council’s Investment Strategy, Borrowing Strategy and Cash Management Strategy. The Executive was informed that whilst there were no changes to any of these strategies it was noted that the Council was in the process of producing a robust Investment Strategy. This was not only for the purposes of meeting the requirements to changes in the prudential code but also to enhance decision support and governance of the capital programme moving forward.

In terms of Prudential Indicators, the following points were noted:

-       The Capital Programme and the Capital Financing requirement had been updated to take account of carry forwards and proposed changes to the approved capital plan.

-       Under the level of approved expenditure the Council would need to borrow from 2019/20.

-       The Borrowing Limits were unchanged from when the Strategy had been adopted earlier in the year.  

Councillor Schofield explained that Annex 1 to the report provided an update on economic conditions and expected movements in interest rates. This information had been provided by the Council’s advisors, Link Treasury Services.

During the discussion a number of matters were considered, including capital financing for the revised capital programme, the use of reserves and the work that was taking place to develop an Investment Strategy. It was suggested that as part of this, it would be useful to bring forward a comprehensive reserves table in order to highlight sources of capital and revenue reserves and the requirements.  

RECOMMENDEDthat the Treasury Management Performance for the year to date and the prudential indicators be noted.

Reason for decision: To comply with the requirements of the regulatory framework for treasury management and meet the Council’s reporting requirements.

Alternative options: Accept the report, but ask Officers to provide more detail on some specific issues contained in the report.