A report from the Executive Director – Resources is attached. (Key decision – reference number 5152)
Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources outlining the activities of the Council’s Treasury Management function during the 2019/20 financial year.
1. The key points of the report as highlighted including the borrowing outstanding, the capital financing requirement, average interest rates and investments and net borrowing. The Council had adopted the CIPFA Code (paragraph 7 of the report referred) which required the Council to approve treasury management half yearly and annual reports.
2. The information summarised in the report was outlined to Members including the borrowing update, capital financing requirement, cost of borrowing and investments as detailed in report. As at 31 March 2020 the Council held £986.9m of loans, an increase of £142.1m to previous year closing balance which was due to the Council’s funding strategy for its capital programme. Outstanding loans on 31 March 2020 were summarised in Table 3 of the report and included loans that had been made to the Council’s companies, as set out in the report.
3. The economic background set out in the report including references to the coronavirus pandemic and Brexit.
4. The interest rate information and factors regarding the Public Works Loan Board as detailed in the report.
5. The proposals set out in the report and reflected in the decisions below and recommendations to Council.
6. That the Annual Treasury Management Outturn report demonstrated the sound financial management of the Council with prudent investments that would seek to improve the lives of the Borough’s residents. The Council’s Section 151 Officer, the Executive Director – Resources, confirmed that over the reporting year all treasury management activities had been carried out in accordance with the approved limits and, the prudential indicators set out in the Council’s Treasury Management Strategy statement.
Alternative Options Considered: None, not appropriate for this report.
DECISION: Cabinet agreed to
1. Note and comment on the contents of the report, as detailed above.
2. Recommend the 2019/20 Treasury Management Outturn report to Council.
3. Recommend to Council to approve the removal of 75% cap on total aggregate investments in money market funds (MMFs).
4. Recommend to Council to approve new money limit of £25m for each eligible counter party (Bank and MMF) meeting the Council’s current criteria for high quality institution.
Reason: To inform Council of the Treasury Management performance for the financial year 2019/20.
(Key decision – reference number 5152)