Decision details
Annual Treasury Management Report
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Decisions:
The Cabinet considered a report of the Corporate Director for Corporate Services detailing the treasury activity for the period from April 2014 to March 2015 and reviewed performance against the Prudential Indicators for 2014/15.
Recommended:-
1. That the Annual Treasury Management Report for 2014/15 and the
outturn Prudential Indicators for the Period from April 2014 to
March 2015, be approved.
2. That it be noted that the financing of capital expenditure of
£34.752m has been funded in accordance with the schedule set
out in Table 1 of section 4, with a reduced financing requirement
of £6.701m.
3. That it be noted that Capital Financing and Treasury Management
were carried out in accordance with statutory requirements, good
practice and in compliance with the CIPFA (The Chartered Institute
of Public Finance and Accountancy) Prudential Code during
2014/15.
4. That the revised Treasury Management Policy Statement for
2015/16, as set out in appendix B to the submitted report, be
approved.
5. That, in respect of the return on investment and borrowing, the
following be noted:
(a) That the loan and investment portfolios were actively managed
to minimise cost and maximise interest earned, whilst maintaining a
low level of risk.
(b) That £0.61m of interest was earned during the whole of
2014/15 at an average rate of 0.64%. This is 0.29% over the
benchmark of the 7 day LIBID (London Interbank Bid Rate) and 0.14%
over bank base rate.
(c) That an average of £69.9m of investments were managed
in-house These earned £0.39m of
interest during the year at an average rate of 0.56%. This is 0.21%
over the average 7 day LIBID and 0.06% over bank base rate.
(d) That an average of £24.8m of
investments were managed by our external fund manager. These
earned £0.22m of interest during the year at an average rate
of 0.87%. This is 0.52% over the average 7 day LIBID and 0.37% over
bank base rate.
(e) That the level of borrowing from the Public Works Loan Board
(PWLB) (excluding debt relating to services transferred from Essex
County Council on 1st April 1998) decreased from £250.8m to
£237.8m (Housing Revenue Account (HRA): £80.8m, General
Fund (GF): £157.0m) by the end of 2014/15.
(f) That the level of funding for invest
to save schemes was £0.14m by the end of 2014/15.
Reason for Decision
To comply with the CIPFA Code of
Practice for Treasury Management in the public sector and the CIPFA
Prudential Code.
Other Options
None.
Note:- This is a Council Function
Eligible for call-in to Policy & Resources Scrutiny
Committee
Executive Councillor:- Woodley
Publication date: 23/11/2015
Date of decision: 23/06/2015
Decided at meeting: 23/06/2015 - Cabinet
Effective from: 03/07/2015
This decision has been called in by:
- Councillor Ann Holland who writes For consideration by Policy and Resources Scrutiny Committee"
- Councillor John Lamb who writes For consideration by Policy and Resources Scrutiny Committee"
Accompanying Documents: