Issue - meetings

Councillor I C Bates, Leader and Chairman of the Cabinet presented the Report of the meetings of the Cabinet held on 18th December 2008 and 29th January 2009.

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In connection with Item Nos. 58 and 59, it was noted that the recommendations had been considered previously under Minute No. 57.

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In connection with Item No. 61 and in response to a question from Councillor G S E Thorpe, Councillor Bates reported that St. Neots Town Council would be consulted shortly on the possible relocation and development of customer services in St. Neots.

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(Having declared a personal and prejudicial interest, Councillors K M Baker, M G Baker, Mrs M Banerjee, K J Churchill and P K Ursell left the meeting during discussion of the following item).

In connection with Item No. 75 and in response to questions from Councillors G S E Thorpe and M F Shellens on the legality and ethnics of the proposed remuneration of Councillors appointed to represent the District Council on the Luminus Board, Councillor Bates replied that this type of arrangement was becoming less unusual and was a matter for the registered social landlord and not the District Council.  However, Councillor Bates undertook to arrange for a written reply to be sent to the questioners.

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In connection with Item No. 77 and in response to a question from Councillor P J Downes with regard to the transfer of the leasehold interest in Council-owned land fronting St. Mary's Street, Huntingdon to the Luminus Group, Councillor Bates indicated that he would reply to the questioner in writing.

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Whereupon, it was

RESOLVED

  that, subject to the foregoing paragraphs, the Report of the meetings of the Cabinet held on 18th December 2008 and 29th January 2009 be received and adopted.

To consider a report by the Head of Financial Services containing a proposed Treasury Management Strategy, which is required under the Council’s Code of Financial Management.

Recommended to full Council that the Treasury Management Strategy for 2009/2010 be approved.

With the aid of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Cabinet considered the content of a proposed Treasury Management Strategy for 2009/2010.

In discussing the Strategy’s objectives, Members’ attention was drawn to the conclusions reached by the Overview and Scrutiny Panel (Corporate and Strategic Framework) that, subject to appropriate safeguards, the Strategy be amended to provide the opportunity to invest in corporate bonds. Whereupon, it was

RECOMMENDED

  that the Treasury Management Strategy for 2009/10, as amended,  be approved.

To consider a report by the Head of Financial Services on the Council’s proposed Treasury Management Strategy for 2009/10.

Councillor S J Criswell in the Chair.

(See Minute No. 14 for Members’ Interests).

(Councillor T V Rogers, Executive Councillor for Finance and Environment, was in attendance for this Item).

With the assistance of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Panel was acquainted with proposed changes to the Council's Treasury Management Strategy for 2009/10, which had arisen as a result of the annual review of the Strategy.

Members’ attention was drawn to a proposal for Corporate Bonds to be included under non-specified investments within the Strategy as one of the types of investment available to the Council. Arising from concerns as to the risks associated with such investments, the Panel received assurances that Bonds would only be used when other forms of investment did not demonstrate a better rate of return and after a risk assessment and consultation with appropriate Members on the proposed limits, procedures and credit rating had been carried out. Subject to these measures being put into place, the Panel did not object to Corporate Bonds being adopted as one of the Council's forms of investment.

The Panel discussed the Council's approach to long term borrowing.  Having noted the terms of borrowing undertaken to fund the Capital Programme for 2009/10, Members received assurances that the external auditor had approved the practice of borrowing to fund future budget commitments when rates were favourable.  Members expressed the view that should similar circumstances reoccur, the same practice should be employed to borrow up to the amount required to fund the Capital Programme.  Whereupon, it was

RESOLVED

  that the Cabinet be requested to recommend the Council to adopt the revised Treasury Management Strategy.