Decision details

The report of the Head of Treasury Services was submitted, reporting on the overall performance for the 2010/11 financial year and the position regarding investments and borrowings at 31 March 2011.

Scrutiny Committee – Resources considered the report at their meeting on 22 June 2011 and their support and comments were noted.

The Head of Treasury Services reported that a return of only 0.74% on investments had been achieved in comparison with the 3% that had been budgeted for and that the Council had now completely withdrawn the investments managed by the Investment Fund Managers. This had resulted in savings in management fees and had also enabled a reduction in the amount of borrowing and in risk exposure.  However short term borrowing for up to 1 year remained very cheap and the Head of Treasury Services recommended that the Council continue to take advantage of the historically low interest rates.

Members were pleased to note that the position in respect of the Icelandic banks appeared to be more optimistic and that it was anticipated that 100% of the investment with Glitnir would be returned in December 2011, subject to priority status being maintained in the Supreme Court.

Executive noted and recommended Council to approve the Treasury Management report for the 2010/11 financial year.