7 Treasury Management Mid Year Report 2020-21 PDF 333 KB
To receive the report from the Executive Director Resources on the Treasury Management Mid Year Position. Key Decision Reference: KD: 5214
Council is asked to consider and note the 2020/21 Mid-Year Treasury Management position and approve the additional policy for 2020/21 Enfield Treasury Management Strategy Statement.
This report is due to be considered by Cabinet on 11 November and recommended to Council for approval.
Minutes:
Councillor Maguire moved and Councillor Caliskan seconded the report of the Executive Director Resources on the Treasury Management Mid-Year position.
NOTED:
1. Councillor Maguire in proposing the report highlighted the following:
· This was the half year report to the end of September 2020.
· It had been considered by Cabinet on 11 November 2020.
· The Council was being asked to approve an additional capital policy for the 2020/21 Enfield Treasury Management Strategy Statement. This policy concerned the working capital policy including where and when to make loans to third parties.
· All treasury management activity had been within approved limits and following prudential indicators.
· The audited borrowing Capital Financing Requirement Forecast for the 31 March 2020 was £1,072m. This has been revised for the 31 March 2021 from £1,238m to £1,288m due to the pandemic and general capital expenditure slippage.
· There had been a reduction of £61.6m in borrowing outstanding and net borrowing with a revised forecast of £1,058. £200m less than the original budget. The Council has spent less, due to work slowing down and there have been no new loans.
· The Council had approximately £1 billion worth of long term borrowing varying slightly between April and September.
· The amount of gross interest paid was forecast to be £27.3m for this financial year.
· Outstanding loans were set out in Table 5 to the report. Where possible loans have been refinanced on better terms.
· The Council had 95 loans spread over a 50 year period.
· Table 3 set out the borrowing position. Table 4 set out the Capital Financing Requirement. Table 5set out the cost of borrowing. Table 6 profiles maturing loans. Table 7 contains Treasury Investments.
2. Comments of the majority opposition group:
· Concern about the high levels of borrowing which will have to be repaid by future generations.
· Concern that Enfield was on track to become the Croydon of North London.
· Disappointment that the Meridian Water had been so slow to get going. It should have been generating more income by this stage.
· Disappointment that Energetik, the Council company, had not yet made a profit and that its directors were being paid too much.
· A forecast of over £1 billion debt was too high and the £27m cost of servicing the debt repayments would have to be taken from the revenue budget which would leave less money for other services.
· Money spent on Housing Gateway had not resulted in the building of new houses. The Council now had one of the highest levels of temporary housing in London.
· Concern about the deficit in the dedicated schools grant.
3. Comments of the minority opposition group:
· The Coronavirus pandemic had been a mixed blessing as it had saved the Council money in some areas.
4. Comments of the majority group:
· The spending on the capital programme was being closely monitored. The report showed clear evidence of sound financial management.
· The Council was supporting the local economy and was investing including in new housing, new lighting as well as Meridian Water.
· Borrowing this ... view the full minutes text for item 7