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 reminded Members that the report provided a summary update of the Treasury Management activity during 2017/18 and that regular, quarterly reports were received by the Audit and Governance Committee.

He advised Cabinet that there had been one breach of the Treasury Management Strategy in 2017/18 in relation to the counterparty limit for the Council’s main banking provider. He advised that it was because an unexpected payment of £1.7m hit the bank account and took the authority over the limit that was agreed within the strategy, but added that there was no consequence and that the limits had been put in place by the authority to protect the Council against financial institution collapse.

He stated 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 had arisen. He highlighted that cash was invested in highly rated financial institutions, money market funds or the Government in line with the Councils investment priorities of security and liquidity, and optimum yield achievable within those. 

Councillor N J Rushton informed Cabinet that the Council had achieved an average rate of return of 0.49% for 2017/18 which compared favourably with benchmark returns and that the treasury position at the end of the 2017/18 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 that were held in investments.

Councillor T Gillard stated that he was pleased that the error was picked up and therefore showed that the systems were working.

It was moved by Councillor N J Rushton, seconded by Councillor T Gillard and

RESOLVED THAT:

The Treasury Management Stewardship Report 2017/18 be approved.

Reason for decision: These are statutory requirements