Meeting documents

Policy and Resources Scrutiny Committee
Thursday, 28th November, 2013 6.30 pm

The Cabinet Minutes

Date:
Tuesday, 5th November, 2013
Time:
14:00
Place:
Civic Suite, Civic Centre, Southend-on-Sea
 

Attendance Details

ItemDescriptionResolution
Part I
440 Mid-Year Treasury Management Report-2013/14
Scrutiny Comment for item 440
Business for item 440
Recommended:-

1. That the Mid-Year Treasury Management Report for 2013/14, be approved.

2. That it be noted that the treasury management activities were carried out in accordance with the CIPFA (The Chartered Institute of Public Finance and Accountancy) Code of Practice for Treasury Management in the Public Sector during the period from April to September 2013.

3. That it be noted that the loan and investment portfolios were actively managed to minimise cost and maximise interest earned, whilst maintaining a low level of risk.

4. That it be noted that an average of £59m of investments were managed in-house. These earned £0.14m of interest during this six month period at an average rate of 0.48%. This is 0.12% over the average 7 day LIBID (London Interbank Bid Rate) and 0.02% under bank base rate.

5. That it be noted that an average of £24.5m of investments were managed by our external fund manager. These earned £0.083m of interest during this six month period at an average rate of 0.68%. This is 0.32% over the average 7 day LIBID and 0.18% over the bank base rate.

6. That it be noted 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) has remained at the same level of £246.8m (Housing Revenue Account (HRA): £87.3m, General Fund: £159.5m) during the period from April to September 2013.

Reasons for Decision

The CIPFA Code of Practice on Treasury Management recommends that Local Authorities should submit reports regularly. The Treasury Management Policy Statement for 2013/14 sets out that reports would be submitted to Cabinet quarterly on the activities of the treasury management operation.

Other Options

There are many options available for the operation of the Treasury Management function, with varying degrees of risk associated with them. The Treasury Management Policy aims to effectively control risk to within a prudent level, whilst providing optimum performance consistent with that level of risk.

Note:- This is a Council Function.
Eligible for call in to Policy and Resources Scrutiny Committee.
Executive Councillor: Moring
*Called in to:- Policy and Resources Scrutiny Committee
14:00/15:50

Attendance Details

Present:
Councillor N Holdcroft (Chairman),
Councillors J I Courtenay, T Cox, J M Garston, D J Jarvis, J L Lamb, A J Moring, L P Salter.
In attendance:
R Tinlin, J Williams, S Leftley, A Lewis, A Atherton, J Chesterton, J Ruffle and C Gamble.

Also present: Councillors Assenheim, Chalk, Crystall, Godwin, Hadley, Lewin, McMahon, Stafford and Woodley.

Scrutiny Comment

ItemComment
440 Called in by Councillors M Terry and R Woodley.
Final call on 14/11/2013 at 14:53
Resolved:-

That the following recommendations of Cabinet be noted:

"1. That the Mid-Year Treasury Management Report for 2013/14, be approved.

2. That it be noted that the treasury management activities were carried out in accordance with the CIPFA (The Chartered Institute of Public Finance and Accountancy) Code of Practice for Treasury Management in the Public Sector during the period from April to September 2013.

3. That it be noted that the loan and investment portfolios were actively managed to minimise cost and maximise interest earned, whilst maintaining a low level of risk.

4. That it be noted that an average of £59m of investments were managed in-house. These earned £0.14m of interest during this six month period at an average rate of 0.48%. This is 0.12% over the average 7 day LIBID (London Interbank Bid Rate) and 0.02% under bank base rate.

5. That it be noted that an average of £24.5m of investments were managed by our external fund manager. These earned £0.083m of interest during this six month period at an average rate of 0.68%. This is 0.32% over the average 7 day LIBID and 0.18% over the bank base rate.

6. That it be noted 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) has remained at the same level of £246.8m (Housing Revenue Account (HRA): £87.3m, General Fund: £159.5m) during the period from April to September 2013."

Note:- This is a Council Function.
Executive Councillor: Moring

Business

ItemBusiness
440The Cabinet considered a report of the Corporate Director for Corporate Services on the treasury management activity for both quarter two and the period from April to September 2013.

 

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