Issue - meetings

The Chairman of the Corporate Policy and Resources Committee presented the report and advised his Committee had considered this report at their meeting on Thursday, 23rd July and had resolved to recommend the report to Full Council.  

Members were responsible for the review and scrutiny of treasury management policy and activities. The report provided details of the outturn position for treasury activities to the end of March 2020 and highlighted compliance with the Council’s policies, previously approved by members. 

The Chairman of the Corporate Policy and Resources Committee was pleased to report that there were no breaches to prudential indicators during the year and the treasury management function was undertaken in accordance with the Strategy, and Borrowing, Investments and Minimum Revenue Provision Policies. 

Worthy of note was Section 3 of the report which detailed a delegated decision  undertaken at the end of March 2020 to revise the Treasury Counterparty limits to  allow for Grant Funding received from HM Government in relation Covid-19.  Specific details in relation to this were detailed in Section 6.1 of the report. 

Investment interest of 1.655% was above the benchmark of 0.7977% generating £269,000 of income. investment balances totalled £11.6m as at the year end. 

Referencing Section 4.3 the report. Members were reminded that the report focused on activity to the end of March 2020 and whilst a gross yield of 6.53% (a net income of £721,000) was just shy of being 9% above target an impact was expected on this revenue due to Covid-19.  The balance of the Valuation volatility reserve was £1.767m. Members noted that revenue was still being generated from the Commercial Property Portfolio and, was expected to achieve close to the 6% target in the current year, despite the pandemic.  

During the year the Authority had borrowed an additional £6.5m, bringing the total amount borrowed to £20m. In addition, internal borrowing of £16.991m saved £419,000 in interest charges during the year.  

The Chairman of the Corporate Policy and Resources Committee proposed the recommendations.

With no questions posed the recommendations were seconded and on being put to the vote it was: -

RESOLVED that the recommendation from the Corporate Policy and Resources Committee be accepted and the Annual Treasury Management Report and actual Prudential Indicators 2019/20 be approved.

Members gave consideration to a report which detailed the outturn position for Treasury activities and which  highlighted compliance with the Council’s policies previously approved by Members.

Section 3 of the report detailed the main prudential indicators.  Members noted that at the end of March 2020 a Delegated Decision had been taken to increase Treasury Counterparty limits to allow for the Grant Funding received in relation to Covid-19, further details were contained at section 6.1 of the report.

Members were asked to recommend the Annual Treasury Management Report and actual prudential indicators 2019/20 to Full Council for Approval.

The data contained within the table at Section 4.1 of the report in respect of borrowing, having been questioned by a Member, was confirmed to be incorrect and should read “16.5m from PWB” and “3.5m” from other bodies.

Officers apologised for the oversight and undertook to amend this prior to the report’s submission to Full Council.

The performance of the investment portfolio, detailed on page 70 of the report  together with details of the most recent property investment, was referenced by the Chairman.  It was drawn to Committee’s attention that the financial position within the report was that at the end of March.  Despite the implications of the Covid-19 Pandemic, the investments were still proving profitable, as opposed to a liability, and currently were still on track to perform close to their target of 6% for 20/21.

RESOLVED that the Annual Treasury Management Report and actual Prudential Indicators 2019/20 be RECOMMENDED to Full Council for approval.