Issue - meetings

To consider the Council’s performance for 2016/17.

Cllr Kendal disclosed a non-pecuniary interest as a Member of Hampshire County Council which undertook the contract for the treasury management function.  He concluded that there were no grounds under common law to prevent him from remaining in the meeting to speak.  He did not have a vote.

RESOLVED:

That the performance of the treasury management function, as set out in Report Item 8 to the Cabinet, be noted.

RECOMMENDED:

That the revise prudential indicators for 2017/18-2018/18, set out in Appendix 1 to report Item 8 to the Cabinet, be approved.

Cllr Kendal disclosed a non-pecuniary interest as a member of Hampshire County Council which undertook the contract for the treasury management function.  He concluded that there were no grounds under common law to prevent him from remaining in the meeting to speak.  He did not have a vote.

The Cabinet considered the annual report on the performance of the Treasury Management Function during 2016/17.  This Council’s treasury management function was now managed by the County Council’s Investments and Borrowing Team, which allowed access to a wider range of investment opportunities.

The report set out the external and internal contexts within which the Council’s borrowing and investment strategies were operating.

The majority of the Council’s borrowing continued to be through the Public Works Loans Board which provided the best balance of providing low interest costs and achieving cost certainty over the period for which the funds were required.  No new borrowing had taken place in 2016/17 and the majority of the Council’s debt continued to be the loan for the resettlement of the Housing Revenue Account, for the repurchase of the Council’s housing stock.  As the premium charged for the early repayment of debt to the Public Works Loans Board remained relatively expensive, there had been not rescheduling of debt in 2016/17.

The Council’s investment strategy had reflected changes in the risk of unsecured bank and building society deposits and had sought to achieve an appropriate balance between risk and return.  The Council’s treasury advisers, Arlingclose, continued to provide support and advice, monitoring performance with respect to the Council’s investment objectives.  The Council’s average cash balance in 2016/17 had been £70.1 million, achieving an average yield of 0.96%, compared to 0.91% in 2015/16.

It was noted that it had been confirmed that the Council had complied with its Prudential Indicators for 2016/17.

RESOLVED:

That the performance of the treasury management function, as set out in Report Item 8 to the Cabinet, be noted.

RECOMMENDED:

That the revised prudential indicators for 2017/18-2018/19, set out in Appendix 1 to report Item 8 to the Cabinet, be approved.