Decision details

Quarter Three Treasury Management Report - 2018/19

Decision Maker: Cabinet

Decision status: For Determination

Is Key decision?: Yes

Is subject to call in?: No

Decision:

The Cabinet considered a report of the Strategic Director (Finance and Resources) setting out the treasury management activity and compliance with the treasury management strategy for both quarter three and the period from April to December 2018.

 

Resolved:

 

1. That the Quarter Three Treasury Management Report for 2018/19, 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 December 2018.

 

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 £0.628m of interest was received during the nine month period.  The total investment income earned including this interest during this nine month period was £1.843m, at an average rate of 3.54%.  This is 3.06% over the average 7 day LIBID (London Interbank Bid Rate) and 2.90% over the average bank rate.

 

5. 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 1999) remained at the same level of £227.8m (Housing Revenue Account (HRA): £77.0m, GF: £150.8m) during the period from April to December 2018.

 

6. That it be noted that the level of financing for ‘invest to save’ capital schemes decreased from £8.74m to £8.68m during the period from April to December 2018.

 

7. That the commercial property investment decision set out in Section 14 of the submitted report, made under delegated authority by the Strategic Director (Finance and Resources), be noted.

 

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 2018/19 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 an Executive Function

Eligible for call-in to: Policy & Resources Scrutiny Committee

Cabinet Member: Cllr Lamb

Report author: Joe Chesterton

Publication date: 15/03/2019

Date of decision: 12/03/2019

Decided at meeting: 12/03/2019 - Cabinet

Accompanying Documents:

 

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