Issue - meetings

To note the Treasury Management performance for the first 6 months of 2016/17 and recommend the report to Council for consideration. 

Notes the Treasury Management performance for the first 6 months of 2016/17; and

RECOMMENDS

The Treasury Management 6-month performance report to Council for consideration.

By way of a report from the Head of Resources (a copy of which is appended in the Minute Book) the Cabinet were updated on the Council’s treasury management activity for the first six months of the year, including investment and borrowing activity and treasury performance.

Best practice and prescribed treasury management guidance required that Members were informed in respect of treasury management activity.  All treasury management activity undertaken during the first half of 2016/17 complied with the Chartered Institute of Public Finance and Accountancy Code of Practice and relevant legislative provisions.

The investment strategy was to invest any surplus funds in a manner that balanced low risk of default by the borrower with a fair rate of interest. The Council’s borrowing strategy permitted borrowing for cash flow purposes and funding current and future capital expenditure over whatever periods were in the Council’s best interests.

The Cabinet were referred to Appendix E of the report which detailed the Commercial Investment Strategy (CIS) Indicators relating to investments during the first half of 2016/17 and those investments made in 2015/16.  The two investments during the first half of 2016/17 included Wilbury Way, Hitchin and Shawlands Retail Park, Sudbury for a total of £9.20m, the funding for which was taken from the CIS earmarked reserve. 

Potential CIS investments were being continually investigated and it was noted that Appendix E also included a summary of 34 potential CIS opportunities that were considered and if not pursued the reasons why.  In response to a question it was explained that returns from the CIS portfolio represented a higher return than those from financial institutions and in addition offered a less risky investment being supported by a physical asset.  The Council was confident that it had invested in the correct CIS assets and was doing an outstanding job with the resources that it currently had.  Whereupon, it was

RESOLVED

that the Cabinet notes the Treasury Management performance for the first six months of 2016/17; and

RECOMMENDS

the Treasury Management 6-month performance report to Council for consideration.

Members are to receive the Treasury Management Six Month Performance Review.

With the aid of a report by the Head of Resources (a copy of which is appended in the Minute Book) the Treasury Management Six Month Performance Review was presented to the Panel. Members noted that during the last quarter the Council have made two investments under the Commercial Investment Strategy.

(At 8.55pm, during the consideration of this item, Councillor R B Howe left the meeting and did not return.)