Meeting documents

Policy and Resources Scrutiny Committee
Thursday, 16th July, 2015 6.30 pm

The Cabinet Minutes

Date:
Tuesday, 23rd June, 2015
Time:
14:00
Place:
Jubilee Room, Civic Centre, Southend-on-Sea
 

Attendance Details

ItemDescriptionResolution
Part I
38 Annual Treasury Management Report - 2014/15
Scrutiny Comment for item 38
Business for item 38
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
*Called in to:- Policy and Resources Scrutiny Committee
14:00/14:55

Attendance Details

Present:
Councillor R A Woodley (Chairman)
Councillors I D Gilbert, A P Jones, G E Longley, J W Moyies, D A Norman MBE, M W Terry
In attendance:
R Tinlin, J K Williams, S Leftley, A Lewis, A Atherton, J Ruffle, I Ambrose, A Keating, F Abbott and C Gamble

Also present: Councillors Assenheim, Folkard, Habermel, Lamb, Mulroney, McMahon and Salter

Scrutiny Comment

ItemComment
38 Called in by Councillors J Lamb and A Holland.
Final call on 02/07/2015 at 15:45
Resolved:-

That the following decisions of Cabinet be noted:-

"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."

Note:- This is a Council Function
Executive Councillor:- Woodley

Business

ItemBusiness
38The 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.

 

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