Issue - meetings

By way of a report by the Head of Financial Services, to receive the annual report on treasury management 2009/10.

Noted the respective levels of performance for the year ending 31st March 2010 by fund managers in the investment of the Council's Capital Receipts and recommended the report to full Council.

A report by the Head of Financial Services was submitted (a copy of which is appended in the Minute Book) which reviewed the respective levels of performance for the year ending 31st March 2010 by fund managers in the investment of the Council's Capital Receipts.

In accordance with the Chartered Institute of Public Finance and Accountancy's Treasury Management Code of Practice, Executive Councillors received the views of the Overview and Scrutiny (Economic Well-Being) Panel on the matter.  Particular attention was drawn to a scheme through which town and parish councils can deposit funds with the District Council for investment. Having regard to the strict legal framework within which the scheme operates, the Panel were of the opinion that there might be some benefit in varying the scheme’s current terms for investments that exceed £250k.

Having acknowledged that the Council had performed well with regard to the returns it had achieved on its investment in the year, the Cabinet

RESOLVED

  that the contents of the report be noted prior to its submission to the Council.

To consider a report by the Head of Financial Services.

(Councillor L M Simpson was in attendance for this item)

Councillor L M Simpson introduced a report by the Head of Financial Services (a copy of which is appended in the Minute Book) containing details of the performance of Fund Managers in the investment of the Council’s Capital receipts for the year ending 31^st March 2010.

The Panel discussed the scheme through which town and parish councils could deposit funds with the District Council for investment. Having noted the origins of the scheme, the Panel were advised of the strict legal framework within which it operated. Members considered whether there might be any benefit in varying the scheme’s current terms. While the administrative costs and low level of likely returns meant it would not be worth reducing the minimum sum that town and parish councils could invest, Members were advised that there might be an opportunity to devise individual arrangements for councils with investments that exceed £250k.

Having acknowledged that the Council had performed well with regard to the returns it had achieved on its investments in the year, comment was made concerning the accuracy of the forecast for the year. In response, Members were advised that the initial forecast had been based on an assumption that provision should be made for payment of interest in the first year when this was not the case. An adjustment would be made for 2010/11.

Members went on to discuss the value of the service provided by the Council’s advisors on investments, together with the timing of the information they provided to the Council. Although the cost to the Council of this service was relatively low, Members were of the opinion that the Council should review whether it was needed in two years time, when the sums available for investment had reduced.

Having discussed the security of investments, the use of building societies and the Debt Management Office, the Panel noted that the market would be monitored for opportunities on advantageous terms to borrow to fund future capital expenditure. Following receipt of an update on the request for a loan by the Wildlife Trust for Bedfordshire, Cambridgeshire, Northamptonshire and Peterborough, it was

RESOLVED

that the Treasury Management Annual Report 2009/10 be endorsed for submission to the Cabinet.