Council and councillors

Report No. 189/2017 from the Director for Resources was received.

Mr Della Rocca, Assistant Director – Finance, introduced the report, the purpose of which was to meet the requirements of the regulatory framework of treasury management (Revised 2009) that the Council received a mid-year treasury review report in addition to the forward looking annual treasury strategy and backward looking annual treasury report.  The report incorporated the needs of the Prudential Code to ensure adequate monitoring of capital expenditure plans and the Council’s prudential indicators (PIs).  The treasury strategy and PIs were contained in report 41/2017, which was approved by Council on 14^th February 2017.  The underlying purpose of the report also supported the objective in the revised CIPFA Code of Practice on Treasury Management and the Department of Communities and Local Government (DCLG) Investment Guidance that Members received reports on and adequately scrutinised the treasury management service.

During discussion the following points were raised:

i.      Mr Della Rocca and Mr Mathias had met with Capita Asset Services (advisors to the Council) who advised that the return on investment was good in relation to the investments and that investment periods of no longer than 12 months were still appropriate;

ii.     Mr Mathias noted that the rate of return, though better than the LIBOR rate, could be improved upon if the Council were to alter its approach to investment and a report was expected to come to Full Council for consideration as part of the budget setting process;

iii.    Many Local Authorities were looking at new and creative ways of making a return on investments and the Government was currently consulting on this subject, looking to tighten up the regulations.  It was expected that there would be a strong response from Local Authorities who were looking at creative ways to invest in order to mitigate the effects of funding cuts and would not want to see their options around non-treasury investments restricted; and

iv.   It was requested that the figures in relation to the level of investments at September 2017 and the forecasted balances to the end of the year be presented differently in order to improve clarity.

DECISION

1.    Cabinet NOTED the contents of Report No. 189/2017.

Reason for Decision

1.    The report summarised treasury management performance in the year and met the requirements of the revisions to the regulatory framework of treasury management during 2009.