Issue - meetings

To consider the report of Assistant Director Finance.

Scrutiny Committee – Resources considered the report at its meeting on 28 January 2015 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 2015/16, as required under section 15(1)(a) of the Local Government Act 2003.

In response to Members’ questions, the Assistant Director Finance confirmed that the General Fund did not have any long term borrowing. The Housing Revenue Account (HRA) did have long term borrowing as the Council had made a one off payment in March 2012 to buy itself out of the HRA subsidy system.

Scrutiny Committee – Resources considered the report at its meeting on 28 January 2015 and comments were noted.

RECOMMENDED to Council to adopt the new Treasury Management Strategy and delegations contained therein.

To consider the report of the Assistant Director Finance

The Assistant Director Finance presented a report which sought Members’ approval for the adoption of the Treasury Management Strategy Report, which also incorporated the Annual Investment Strategy 2015/16, as required under Section 15(1)(a) of the Local Government Act 2003. The key sections were set out in paragraph 8.2 and included an increase in the amount the City Council could lend to UK owned banks as well as the upper limit that could be lent to the highest rated Foreign owned banks.

The Assistant Director Finance provided an update on the situation relating to their Landsbanki investments, confirming that the City Council had been able to broadly recover what had been invested, and also recovered all of the investment from the Glitnir Bank.  An opportunity to recover the funds held in Icelandic Krona had arisen and this would be discussed with the Local Government Association.   He also responded to comments received from a Member relating to the repayment of a loan from the Police and Crime Commissioners Panel body, confirming if it was disbanded, it would be replaced by another democratic body, the liability transferred and any repayment to be made on time.  He also outlined the facility to make loans between local authorities.  The Public Works Loan Board was a statutory body of the UK Government that provided loans to public bodies.

A Member commented on the investment strategy and suggested a Member Briefing be held to enable Members to have a better understanding of how the savings and investment strategy was delivered.  It was noted that an appropriate date would be identified.

Scrutiny Committee - Resources noted the report, requesting that Executive recommend the adoption by Council of the new Treasury Management Strategy and delegations contained therein.