Agenda item

Council assembly is asked to note the treasury management mid-year update.

(See pages 46 - 57 of the main agenda.)

RESOLVED:

1.  That council assembly noted the 2016-17 mid-year treasury management update report on treasury management and that:

a)  all treasury management activity in the period was undertaken in compliance with the approved treasury management strategy and with the council’s prudential indicators.

b)  the balance on all loans at 31 March 2016 was £463m (371m housing revenue account and £92m general fund).  Loans totalling £2.5m were repaid during the period.  No new borrowing or debt rescheduling were undertaken during the period.

c)  in the six months to 30 September 2016 the sum invested averaged £186m (£253m in the corresponding period last year) and the balance of investments at 30 September stood at £206m. The average return on investments was 0.52% (0.77% in 2015-16).

d)  following the result of the European Union referendum no changes to the overall treasury management strategy were necessary.

2.  That council assembly:

a)  approved the council’s acceptance of the UK Municipal Bonds Agency Framework Agreement and its accompanying schedules including the joint and several guarantee.

b)  noted that signing the Framework Agreement does not make the council subject to the joint and several guarantee or provisions of the Framework Agreement until such time as it chooses to borrow from the Agency.

c)  delegated authority to the strategic director of finance and governance to agree amendments to the Framework Agreement as appropriate.