Meeting documents

Policy and Resources Scrutiny Committee
Thursday, 4th December, 2014 6.30 pm

The Cabinet Minutes

Date:
Tuesday, 11th November, 2014
Time:
14:00
Place:
Civic Suite, Civic Centre, Southend-on-Sea
 

Attendance Details

ItemDescriptionResolution
Part I
371 Mid-Year Treasury Management Report - 2014/15
Scrutiny Comment for item 371
Business for item 371
Recommended:-

1. That the Mid-Year Treasury Management Report for 2014/15, be approved.

2. That the Revised Annual Investment Strategy 2014/15, as set out in section 9 of the submitted report, be approved.

3. That it be noted that 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 2014.

4. 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.

5. That it be noted that an average of £75.7 million of investments were managed in-house. These earned £0.19 million of interest during this six month period at an average rate of 0.49%. This is 0.14% over the average 7-day LIBID (London Interbank Bid Rate) and 0.01% under bank base rate.

6. That it be noted that an average of £24.7 million of investments were managed by the Council's external fund manager. These earned £0.11 million of interest during this six month period at an average rate of 0.87%. This is 0.52% over the average 7-day LIBID and 0.37% over bank base rate.

7. 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) remained at the same level of £250.8 million (Housing Revenue Account HRA): £84.5m, General Fund: £166.3m) during the period from April to September 2014.

Reason for Decision

The CIPFA Code of Practice on Treasury Management recommends that Local Authorities should submit reports regularly. The Treasury Management Policy Statement for 2014/15 set 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 & Resources Scrutiny Committee
Executive Councillor:- Woodley
*Called in to:- Policy and Resources Scrutiny Committee
14:00/15:00

Attendance Details

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

Also present: Councillors Burling, Butler, Folkard, Habermel, Moyies and Salter

Scrutiny Comment

ItemComment
371 Called in by Councillors J I Courtenay and J Lamb.
Final call on 21/11/2014 at 14:26
Resolved:-

That the following recommendations of Cabinet be noted:

"1. That the Mid-Year Treasury Management Report for 2014/15, be approved.

2. That the Revised Annual Investment Strategy 2014/15, as set out in section 9 of the submitted report, be approved.

3. That it be noted that 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 2014.

4. 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.

5. That it be noted that an average of £75.7 million of investments were managed in-house. These earned £0.19 million of interest during this six month period at an average rate of 0.49%. This is 0.14% over the average 7-day LIBID (London Interbank Bid Rate) and 0.01% under bank base rate.

6. That it be noted that an average of £24.7 million of investments were managed by the Council's external fund manager. These earned £0.11 million of interest during this six month period at an average rate of 0.87%. This is 0.52% over the average 7-day LIBID and 0.37% over bank base rate.

7. 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) remained at the same level of £250.8 million (Housing Revenue Account HRA): £84.5m, General Fund: £166.3m) during the period from April to September 2014."

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

Business

ItemBusiness
371The Cabinet considered a report of the Corporate Director for Corporate Services detailing the treasury management activity for both quarter two and the period from April to September 2014.

 

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