Issue - meetings

To consider the Treasury Management Strategy 2020/21.

The Head of Finance presented the Treasury Management Strategy 2020/21.

During the discussion of this item, the following points were made:

·         The Treasury Management Strategy formed part of the budget.

·         Members were advised that the period for loans from the Council to other local authorities had been extended to a maximum of 5 years and up to £10m with a single counterparty: this was in response to a change in market position following the Treasury increasing the Public Works Loan Board rates by 1%.  Local authorities did not have a rating unless they issued their own bonds however; they were underwritten by central Government and thus were deemed to have the UK Sovereign rating. 

·         Councillor Burgess asked about the Council’s position on ethical investments and climate emergency investments.  The Head of Finance indicated that the Council tended to invest in line with local policy, with local authorities.  The Council did not have control over what money markets invested in. 

·         The Chief Accountant commented that the Council had in the past used fund managers but that investments were now primarily with other local authorities.

·         The Head of Finance commented that the Committee could recommend that ethical and climate emergency investments be looked at, however, the counter party requirements would need to be met and the security of the funds would be primary.

·         Councillor Burgess stated that the Strategy should emphasise the Council’s priorities and that ethical considerations should be a high priority.  Councillor Ross suggested that ethical investments should be considered within the implementation of the 2020/21 Treasury Management Strategy.

·         Councillor Shepherd-DuBey proposed that the Property Investment Group be asked to consider ethical concerns within their decision-making.

·         Councillor Gee suggested that all investments should be reviewed in the next year.

·         Councillor Burgess referred to the Capital Programme 2022/23.  She felt that some of the items included under the Climate Emergency section were already happening and that it was not £50m of new spending on climate emergency.

·         Councillor Gee was of the opinion that a number of the climate emergency items were not capital but were repairs or maintenance.  The Assistant Director Governance commented that there were strict rules as to what could or could not be considered capital expenditure.  The Head of Finance emphasised that officers were bound by the prudential code and code of practice and could reject items as capital expenditure if it was felt that it did not meet the necessary requirements.  The Assistant Director Governance went on to suggest that more on revenue and capital could be included in Members’ training in the new municipal year.

·         In response to a Member question, it was clarified that Bulmershe Leisure Centre was considered ‘infrastructure’ with regards to the Capital Financing Requirement.  Councillor Shepherd-DuBey suggested that the reference to ‘Town Centre regeneration’ should be amended to ‘Wokingham Town Centre regeneration.’

·         Councillor Gee asked a number of questions about the Council’s borrowing position.  The Head of Finance agreed to clarify the figures.

·         Councillor Gee asked whether the non-treasury investments were gross  ...  view the full minutes text for item 61