To consider the mid-year Treasury Management report for 2018/19.

RECOMMENDATION That Council is asked to:

1)        approve the mid-year Treasury Management report for 2018/19;

2)        note the actual 2018/19 prudential indicators within the report.

The Council considered the Treasury Management Mid-Year Report for 2018/19, as set out on Agenda pages 181 to 206. The report gave details of Treasury Management operations during the first six months of the 2018/19 Municipal Year.

The report stated that, as at September 2018, the Council was forecast to exceed its investment return budget and there had been no external loans taken out in the first six months of 2018/19. It also confirmed that there had been no breaches of the Treasury Management Strategy in the first six months of the year.

It was proposed by Anthony Pollock and seconded by Chris Smith that the recommendations set out on Agenda page 181, be approved.

Upon being put to the vote it was:

RESOLVED that:

1)         the Treasury Management Mid-Year Report for 2018/19 be approved;

2)        the actual 2018/19 Prudential Indicators, as set out in the report, be noted.

That:

1)        it be noted that the mid-year Treasury Management report for 2018/19 was approved by the Audit Committee on 7 November 2018;

2)         the mid-year Treasury Management report for 2018/19 be noted;

3)         the actual 2018/19 prudential indicators within the report be noted;

4)         the report be recommended to Council to approval.

The Executive considered a report relating to Treasury Management operations during the first six months of 2018/19.

The Executive Member for Finance when introducing the report stated the importance of the document which connected the Council’s borrowing and investment with the prudential guidance indicators which showed that the Council’s financial position in respect of borrowings and investments was soundly managed and soundly based.  Councillor Pollock highlighted a number of areas in the report which included the fact that the Council had borrowed less in the first half of the year than was planned, the level of borrowing that was being repaid and investments that were being made in council housing stock.

The Leader of Council highlighted the fact that the £95m, previously borrowed as part of the HRA account, had been reduced to £79.8m which was particularly pleasing given that at the same time the Council was investing in its housing stock.

In response to a query about whether the Executive Member was concerned about the Council’s level of borrowing Councillor Pollock responded that he was not concerned as the money that the Council held in assets, both in terms of housing stock and the town centre, would be valued approximately double the level of borrowing.  In addition the investment portfolio was worth more than the Council had invested in it and the carrying costs were lower than the rental income which was based on sound, long term tenants.

RESOLVED that:

1)        it be noted that the mid-year Treasury Management report for 2018/19 was approved by the Audit Committee on 7 November 2018;

2)         the mid-year Treasury Management report for 2018/19 be noted;

3)         the actual 2018/19 prudential indicators within the report be noted;

4)         the report be recommended to Council to approval.