Issue - meetings

To receive an update on the Council’s treasury management activity during 2022/23, including investment and borrowing activity and treasury performance.

Executive Councillor: B Mickelburgh.

The Cabinet has noted the treasury management performance for 2022/23 and recommended the report to Council for consideration.

With the aid of a report prepared by the Chief Finance Officer (a copy of which is appended in the Minute Book) the Cabinet were updated on the Council’s treasury management activity for 2022/23, including investment and borrowing activity and treasury performance.

Attention was drawn by the Financial and Treasury Accountant to the investment activity that had taken place and the significant increase in interest rates compared to the start of 2022/23, as well as a reduction in long-term borrowing activity representing a reduction of £4m by year end and activity in investments. The Commercial Investment Strategy properties had attracted a yield of 7.5% compared to current interest rates and a yield of 3.98% on the Council’s property fund.

Having had their attention drawn to the comments of the Overview and Scrutiny Panel (Performance and Growth) at their meeting on 7th June 2023 particularly in relation to the change in rental value of the Rowley Centre, St Neots as opposed to the value of the asset and further confirmed that the borrowing was all fixed. Whereupon, it was

RESOLVED

that the treasury management performance for 2022/23 be noted and recommend the report to Council for consideration.

The Panel is invited to comment on the Treasury Management Outturn Report 2022/2023.

Executive Councillor: B Mickleburgh

By means of a report by the Chief Finance Officer (a copy of which was appended in the Minute Book), the Treasury Management Outturn Report 2022/23 was presented to the Panel.

Following a question from Councillor Pickering, the Panel heard that the increase in the overall property value of the Rowley Centre St Neots was due to the unit occupied by Cineworld having returned to full rent (valuations being based on rent yield), from the reduced rent during the COVID pandemic.

In response to a question from Councillor Jennings, it was confirmed to the Panel that all borrowing was on fixed rate terms, the majority being borrowed from the Public Works Loans Board, in addition there is a small loan from Salix Ltd at fixed 0% interest.

The Panel heard, following an observation by Councillor Blackwell, that an inconsistency in the report relating to People for Places in section 3.1 would be corrected to Places for People.

In response to a question from Councillor Harvey, the Panel heard that the reduction in property value of the existing portfolio shown in Table 8 was due to a decrease in rent and estimated future yield at two locations which impacted on the property value, it was also advised that new valuers had been appointed which had resulted in some valuation changes.

It was thereupon

RESOLVED

that the comments of the Overview and Scrutiny Panel be passed to Cabinet for their consideration when making a decision upon the recommendations contained within the report.