Issue - meetings

Meeting: 24/01/2022 - Council (Item 65)

65 Recommendation from Corporate Policy and Resources Committee - Mid Year Treasury Report 2021-22 pdf icon PDF 848 KB

Additional documents:

Minutes:

Councillor Anne Welburn in her capacity as Chairman of the Corporate Policy and Resources Committee, presented the report which sought approval of the Mid Year Treasury Report 2021/22.

 

The report had been presented to the Corporate Policy and Resources Committee, where it had been fully considered and debated and stood referred to Council for approval

 

Members were advised there had been no breach of prudential indicators and the mid year review had been undertaken, taking into account changes to the Capital Programme and forecasts of cash flow requirements including investing and borrowing estimates.

 

The report provided an update of the treasury management prudential indicators, as required in the prudential code and Local Government Act and sets revised indicators for the remainder of the year.  In presenting the report the Chairman highlighted key revisions, the reasons for revisions and positions mid year: -

 

Covid 19 continued to have an adverse effect on the economy and interest rates remained low at 0.1%.

 

The Capital Financing Requirement, reflected the Council’s borrowing need for 2021/22, and had reduced from £41.340m to £40.088m due to a voluntary charge to reduce borrowing against our investment properties. 

 

A voluntary revenue provision of £374,000 would be made this year and the £707,000 provided for last year was not included in the original indicator, set in advance of the year end.

 

In addition, there had been small slippage on some capital schemes funded by borrowing.

 

The council was currently holding around £20m of investments on a regularly monthly basis, this was in the main due to additional grants from Government, however the councils cashflow had been revised and by year end balances were expected to be around £17m. 

 

This revision had established that the Councils external borrowing would likely be £25m as such the anticipated external debt had been revised and reduced down accordingly. Internal borrowing was likely to be circa £15.088m at year end, resulting in total borrowing of £40.088m.

 

Table 4.2 of the report set out how these revisions impacted the cost of council tax and financing costs in relation to the net revenue stream.

 

Reference Section 1.4 and the investment returns stated at £154,000 a Member sought indication what this was in percentage terms against the investment.  Whilst the Section 151 Officer indicated the figure to be in the region of just over 1%, she did not have the exact figure to hand.  However, such information was reported to the Corporate Policy and Resources Committee on a quarterly basis with the next report being due in February 2022.

 

Having been moved and seconded it was

 

RESOLVED that recommendation from the Corporate Policy and Resources Committee be accepted and as such the Mid-Year Treasury Management Report and changes to Prudential Indicators be approved.

 

 


Meeting: 11/11/2021 - Corporate Policy and Resources Committee (Item 45)

45 Mid Year Treasury Report 2021-22 pdf icon PDF 849 KB

Additional documents:

Minutes:

Members gave consideration to the Mid Year Treasury Report, presented by the Corporate Finance Team Leader. Members heard that the report provided an update of the treasury management prudential indicators as required in the prudential code and local government act. It was highlighted that covid-19 continued to have an adverse effect on the economy and interest rates remained low at 0.1%. This was obviously having an impact on the Council’s investment returns and would continue to do so in future financial years. It was estimated by the treasury advisors, Link Asset Services, to continue until June 2022 at the earliest.

 

The Capital Financing Requirement had reduced as a voluntary revenue provision was assumed in relation to the borrowing for investment properties of £374,000 and the original forecast did not take into account the voluntary revenue provision actioned at the end of the 2020/21 of £707,000. In addition, there had been small slippage on some schemes funded by borrowing.

 

The Council was holding around £20m of investments on a regularly monthly basis, this was mainly due to additional grants from government, however the Council’s cash flow had been revised and, by year-end, balances were expected to be around £17m. This revision established that the Council’s external borrowing would likely be £25m, the anticipated external debt had been revised and reduced down accordingly. Internal borrowing was likely to be around £15.867m at year-end, resulting in total borrowing £40.867m. Members were advised that this all impacted on the cost of council tax and financing costs in relation to the net revenue stream. The Committee was asked note the report, treasury activity and recommend approval of the changes to the prudential indicators to Full Council.

 

Members gave their support to the report and the Chairman expressed her thanks to the Corporate Finance Team Leader, who was due to leave the Council after a considerable time. The Committee joined in sharing their thanks and best wishes for the future.

 

With no further comment, and having been moved and seconded, it was

 

RESOLVED that it be recommended to Full Council to note the report, the treasury activity and recommend approval of any changes to the prudential indicators.