Issue - meetings

To consider the report of the Assistant Director Finance.

Corporate Services Scrutiny Committee considered the report at its meeting on 26 January 2017 and its comments will be reported.

The report of the Assistant Director Finance was submitted seeking adoption by the Council of the Treasury Management Strategy Report, incorporating the Annual Investment Strategy 2017/18, as required under section 15(1)(a) of the Local Government Act 2003.

The Assistant Director Finance advised Members of an additional recommendation that investments in the CCLA Property Fund with a maximum limit of £5 million and for a maximum time limit of 12 months be added to the Strategy.

In response to a Member, the Assistant Director Finance advised that the investment funds were spread across many different funds, they were continually monitored and regularly meeting were held with the Councils Treasury advisers. Local Authorities were in a unique position in that if there was a loss on the capital value of any investments in property funds they would only need to be recognised when the investment was sold.

Corporate Services Scrutiny Committee considered the report at its meeting on 26 January 2017 and its comments were reported.

RECOMMENDED that Council:-

(1)          adopt the new Treasury Management Strategy and delegations contained therein: and

(2)          investment in the CCLA Property Fund with a maximum limit of £5 million and a maximum time limit of 12 months be added to the Strategy.

To consider the report of the Assistant Director Finance.

The Assistant Director Finance presented the report on the Treasury Management Strategy and position of the Annual Investment Strategy 2017/18. The report was a statutory requirement and must be approved by Full Council.

He informed Members that the Treasury Management Strategy Report would provide the Council with an approved treasury management strategy for the start of each financial year and decrease risk of exposure to financial loss of invested funds. He referred Members to the report and commented on the key issues of the treasury management plan.

The Assistant Director Finance provided an overview of the current levels of borrowing and investments, along with the estimated changes and the financial impact for the year on both the General Fund and HRA. He discussed the monetary and time limits for in house investment and the council’s short term borrowing. There were no proposed changes to UK lending limits for the 2017/18 strategy.

The in house planned investment was discussed, which informed Members that the cash flow forecast would be divided into short, medium and long term categories, which would ensure investments and cash flow were protected and borrowing was kept to a minimum. He referred to the borrowing strategy, which was expected to be £96.1million from 31 March 2017 and rise to £110.5million within a year as capital expenditure was gained. He informed Members of the expected long term borrowing requirements.

Corporate Services Scrutiny Committee noted the Treasury Management report for 2017/18 financial year and recommended approval by Executive and Council.