Issue - meetings

Report of the Strategic Director of Housing and Customer Services

Presented by the Corporate Portfolio Holder

The Corporate Portfolio Holder presented the report to Members.

He advised that the report provided a summary update of the Treasury Management activity during 2018/19 and that regular, quarterly reports would be received by the Audit and Governance Committee. He informed Members that the summary set out how the Council had complied with its Prudential Indicators and the policies and requirements within the authority’s Treasury Management Strategy.

He stated that there had been two breaches of investment limits in the year and these were reported to the Audit and Governance committee on 20 March 2019, the details of which were set out in paragraph 6.12 of the report.  He advised that both were unavoidable and there were no penalties or consequences because of the breaches.

He highlighted that the council had not undertaken any new long-term or temporary borrowing in the year and no opportunities in respect of rescheduling existing debt arose. He added that cash was invested in highly rated financial institutions, money market funds or the Government in line with the Council’s investment priorities of security and liquidity, and optimum yield achievable within these. 

He was pleased to advise that the Council had achieved a higher average rate of return in 2018/19 of 0.71% compared to 0.49% in 2017/18. That was a 40% increase, and that the treasury position at the end of the 2018/19 year reflected a reduction in net debt of £5.6m due to £1.1m repayment of HRA loans and an increase of £4.5m of council funds held in investments, partly as a result of increased income and asset sales.

The Head of Finance outlined the detail of the breaches and that they had been reported to Full Council as part of the Treasury Management Strategy.

It was moved by N J Rushton, seconded by Councillor R Blunt and

RESOLVED THAT:

The report be noted.

Reason for decision: These are statutory requirements.