Issue - meetings

Councillor J A Gray, Executive Councillor for Strategic Resources to present the six-monthly update in respect of treasury management activity, including investment and borrowing activity and treasury performance.

Consideration was given to a report by the Head of Resources (a copy of which is appended in the Minute Book) on a six-month update in respect of treasury management activity, including investment and borrowing activity and treasury performance. In so doing, Councillor J A Gray, Executive Councillor for Strategic Resources, drew Members’ attention to the purpose of the Treasury Management to ensure that the Council had sufficient funding to meet its daily obligations, borrow when necessary to fund capital expenditure and ensure that any investment of surplus funds was balanced against risk.

Councillor Gray referred Members to Appendix E of the report and the Commercial Investment Strategy with associated purchases since approval of the Business Plan in December 2015. It was anticipated that returns on yields of land and building investment were between 6% and 9% and Councillor Gray reported that this had been achieved and represented a significantly higher return than investments with financial institutions.

In noting that the Council’s investments had been invested in easily accessible accounts, it was

RESOLVED

  that the Treasury Management Performance for the first 6 months of 2017/18 be noted.

The Treasury Management Six Month Review is to be presented to the Panel.

With the aid of a report by the Head of Resources (a copy of which has been appended in the Minute Book) the Treasury Management Six Month Performance Review was presented to the Panel. The Principle Account introduced the report to Members and outlined the contents of the report.

A Member asked a question in regards to the loan given to Luminus in light of the merger, in response it was confirmed that the loan is secured against property and that as a result of the merger Luminus would be in a stronger financial position and more able to pay back the loan.

The Executive Councillor for Strategic Resources explained the different types of Public Works Loans that can be taken out and added that the Luminus loan is a capital and interest loan and that Luminus are also paying capital and interest back to the Council.

In response to a question regarding the impact of the Commercial Investment Strategy upon the Council’s budget, the Executive Councillor for Strategic Resources stated that the CIS produces in excess of £2m per annum and that if the Council did not have that income then Council Tax would have to increase considerably to offset the cost.

(At 8.08pm, during the consideration of this item, Councillor Mrs D C Reynolds left the meeting.)

(At 8.08pm, during the consideration of this item, Councillor Mrs D C Reynolds returned to the meeting.)