Meeting documents

To consider this report.

The Committee considered this report about the Treasury Management Strategy (TMS) that provided details of the Council’s treasury management activities to achieve its business and service objectives and maintain its financial reputation. This concerned the management of the Council’s cash flows, borrowing and treasury investments and associated risks.

It was reported that the Council currently held £324.55m of debt as part of its TMS for funding previous years’ capital programmes. Of this, £159.05m was Public Works Loan Board (PWLB) debt, approximately £108m was Lender Option Borrower Option (LOBO) debt, and a further £57.5m of fixed rate bank loans. It was noted that at year end analysis showed the average rate paid on all debt to be 4.66%. Also, for the same period it was noted that investment balances which had averaged £218m had yielded an annual income of £2m, meaning an investment return of 0.95%.

There was a brief discussion and in response to a question about maximising investment yield it was explained that officers had to take account of expected and possible balances, the availability and accessibility of the various instruments to be used and their security, liquidity and yield characteristics in that specific order.  

In response to a question it confirmed that the Council’s 151 Officer undertook the most appropriate form of investments in keeping with the investment objectives, income and risk management requirements and prudential indicators. Responsibility for implementing the policy, using only the agreed investment instruments and credit criteria, was delegated to treasury management officers. The Committee sought and received assurance that this was continuously and rigorously monitored.  

The report was accepted.

The Committee considered this report about the Treasury Management Strategy (TMS) that provided details of the Council’s treasury management activities to achieve its business and service objectives and maintain its financial reputation. This concerned the management of the Council’s cash flows, borrowing and treasury investments and associated risks.

It was reported that the Council currently held £324.55m of debt as part of its TMS for funding previous years’ capital programmes. Of this, £159.05m was Public Works Loan Board (PWLB) debt, approximately £108m was Lender Option Borrower Option (LOBO) debt, and a further £57.5m of fixed rate bank loans. It was noted that at year end analysis showed the average rate paid on all debt to be 4.66%. Also, for the same period it was noted that investment balances which had averaged £218m had yielded an annual income of £2m, meaning an investment return of 0.95%.

There was a brief discussion and in response to a question about maximising investment yield it was explained that officers had to take account of expected and possible balances, the availability and accessibility of the various instruments to be used and their security, liquidity and yield characteristics in that specific order.  

In response to a question it confirmed that the Council’s 151 Officer undertook the most appropriate form of investments in keeping with the investment objectives, income and risk management requirements and prudential indicators. Responsibility for implementing the policy, using only the agreed investment instruments and credit criteria, was delegated to treasury management officers. The Committee sought and received assurance that this was continuously and rigorously monitored.  

The report was accepted.