Agenda item

Council assembly to note the treasury management and in-year activity including the council’s cash, borrowing, and supporting capital finance and treasury management prudential indicators.

(See pages 85 – 94 of the main agenda)

The report was considered after the guillotine had fallen, therefore in accordance with council assembly procedure rule 1.12 (3) & (4), the report was afforded up to a maximum of 15 minutes.

Following debate (Councillor Fiona Colley), the recommendations contained within the report were put to the vote and declared to be carried.

RESOLVED:

1.  That the 2014/15 outturn report on treasury management and in year activity as set out below, be noted:

a)  prudently managing council cash and holding it in money market instruments with major banks and the UK government until it is needed in spend (see paragraphs 4 and 5 of the report)

b)  updating the investment strategy in February 2015, ensuring that it remains sound under present market conditions where monetary policy is still highly accommodative and the scope for targeting higher returns without increased risk remains low (see paragraphs 7 and 8 of the report)

c)  ensuring that the council can efficiently and effectively execute the updated investment strategy by continuing to use fund managers (see paragraph 8 of the report)

d)  reducing the interest on PWLB loans outstanding from past capital spend by paying off £5.7m (see paragraphs 9 and 10 of the report)

e)  reducing the draw on internal borrowing to fund capital spend by £23m and raising the headroom for future HRA capital finance by £19m (see paragraph 11 of the report)

f)  holding balances remaining on loans and long term liabilities that pay for past capital spend within the authorised debt limit (see paragraph 15 of the report) and other prudential limits (see Appendix A of the report).