Issue - meetings

To consider the annual report on the Council’s performance on treasury management.

RESOLVED:

That the Treasury Management Report for 2015/16 be noted.

The Cabinet reviewed the Council’s performance on Treasury Management for the 2015/2016 financial year.  While responsibility for treasury management remained with this Council, the County Council’s Investments and Borrowing Team had been contracted to manage this operation since 2014.  It was confirmed that the Council had complied with all of the prudential indicators set in the Treasury Management Strategy. 

The Council had achieved its strategy of maintaining its borrowing and investments below their underlying levels as measured by the Capital Financing Requirement.  The majority of the loans held by the Council arose from the funding of the self-financing settlement for the Council’s housing stock in March 2012.  The Housing Revenue Account Capital Financial Requirement would reduce by £4.1 million per year from 2017/18 as repayments were made.  There had been no new borrowing during 2015/16, with internal resources having been used to lower the overall treasury management risk by reducing both external debt and temporary investments.  Long term debt continued to be managed to reduce costs while retaining certainty over debt repayments.

The Council’s investment strategy had been adjusted to reflect the changing risks, increasingly favouring secured investment options or diversified alternatives, reducing exposure to unsecured bank and building society investments.  It was confirmed that the Council had complied with its prudential and treasury management indicators.

The Cabinet was advised that the Audit Committee had noted the content of this report at their meeting on 28 June 2016.

RESOLVED:

That the Treasury Management Report for 2015/16 be noted.