Issue - meetings

In February 2012 the Council adopted the 2011 edition of the CIPFA Treasury Management in the Public Services: Code of Practice, which requires the Council to approve a Treasury Management Strategy before the start of each financial year, review performance during the year, and approve an annual report after the end of each financial year.

This report gives details of performance against the Council’s Treasury Management Strategy and Annual Investment Plan 2015/16 for the first nine months of 2015/16.

Councillor Andrew Furse expressed his concern in regards of future borrowing.  Councillor Furse said that borrowing would rise from £180m this year to £300m till 2018.  Councillor Furse concluded his statement by saying that this would have revenue implications and questioned if this was the right time to increase capital funding.

Councillor Charles Gerrish said that this report had given details of performance against the Council’s Treasury Management Strategy and Annual Investment Plan 2015/16 for the first nine months of 2015/16. The average rate of investment return for the first nine months of 2015/16 was 0.47%, which was 0.08% above the benchmark rate. £10 million of annual borrowing matured during the third quarter of 2015/16. These funds were re-borrowed for a further 12 months at a more beneficial interest rate. The Council’s total borrowing was £108.3 million as at 31st December 2015.

Councillor Charles Gerrish moved the recommendations.

Councillor Michael Evans seconded the motion by saying that investments returns had continued to be ahead of the benchmark rate whilst reflecting the continued low interest rate environment; that investments had remained diversified across UK banks, building societies and very highly rated foreign banks; and that the Council had continued to not hold any direct investments in countries within the Eurozone.

RESOLVED (unanimously) that the Cabinet agreed that:

1)  The Treasury Management Report to 31st December 2015, prepared in accordance with the CIPFA Treasury Code of Practice, is noted

2)  The Treasury Management Indicators to 31st December 2015 are noted.