Issue - meetings

Treasury Management Outturn 2019-20

Meeting: 17/09/2020 - Council (Item 62)

62 Treasury Management Outturn 2019-20 pdf icon PDF 500 KB

To receive the Treasury Management Outturn report for the 2019-20 financial year.

 

RECOMMENDATION The Executive asks that Council note:

 

1)         that the report was presented to Audit Committee on 29th July 2020;

 

2)         the managed repayment of debt over time which illustrates the increased borrowing required to fund key Council priorities which in turn generate income streams (to repay debt) and provides revenue funding for vital statutory services (as set out in the graph in table 2 of the report);

 

3)         the asset value created through the Council’s capital investments compared to the debt required to generate the asset value (as set out in the graph in table 2 of the report);

 

4)         the capital investments made in the Council’s priorities for its community, by category (as set out in table 1 of the report);

 

6)         the Treasury Management report in Appendix A, that shows that all approved indicators have been adhered to and that prudent and safe management has been adhered to.

 

Additional documents:

Minutes:

The Council considered the Treasury Management Outturn report for the 2019/20 financial year.

 

The report summarised the treasury management operations carried out during 2019/2020. It was presented for the purpose of monitoring and review, in accordance with the Council’s treasury management practices.  The report stated that the Council adhered to all agreed prudential indicators during 2019/2020.  This included ensuring the necessary liquidity to deliver on the day to day operations of the Council.

 

Daniel Sargeant thanked the Finance Team for all their work.  He commented that external borrowing had risen as planned as the Council invested further in its ambitious long-term capital programme.  The investment properties had delivered a return of 5.11%, creating additional revenue.

 

Rachel Burgess commented that whilst the document was essentially backward looking, one of the key graphs within the report, the borrowing versus assets value graph (Table 2), was forward looking.  The figures were based on the Medium Term Financial Plan and suggested that the debt levels were reducing as asset levels were retained at a constant level from 2023/24 onwards.  She expressed surprise that no reference had been made to the potential impact of Covid and the impact that this would have, for example, on asset forecasts.   In addition, she felt that the presentation of the expenditure of £5million last year on climate emergency was potentially misleading, and that much of this expenditure had been rebadged from other budgets.

 

Clive Jones reiterated the concerns that the Liberal Democrat Group had about the Council’s rising debt levels and emphasised that levels had risen considerably over time.  He stated that Covid 19 would have a major impact on the Council’s finances and reserves.

 

Imogen Shepherd-Dubey felt that the report was misleading and did not address the potential impact of Covid 19 on capital projects and property values.

 

Stuart Munro indicated that the Property Investment Strategy had been presented and explained to Overview and Scrutiny.

 

Daniel Sargeant explained that the Treasury Management Outturn report was a backwards looking document and whilst he appreciated that Covid 19 would greatly impact on the Council’s finances, it was not the most appropriate document to reference this.

 

It was proposed by Daniel Sargeant and seconded by John Halsall that the recommendations be agreed.

 

Upon being put to the vote it was:

 

RESOLVED That it be noted that:

 

1)            the Treasury Management Outturn report was presented to Audit Committee on 29th July 2020;

 

2)         the managed repayment of debt over time, which illustrates the increased borrowing required to fund key Council priorities which in turn generate income streams (to repay debt) and provides revenue funding for vital statutory services (as set out in the graph in Table 2 of the report);

 

3)         the asset value created through the Council’s capital investments compared to the debt required to generate the asset value (as set out in the graph in Table 2 of the report);

 

4)         the capital investments made in the Council’s priorities for its community, by category (as set out in Table  ...  view the full minutes text for item 62


Meeting: 30/07/2020 - Executive (Item 9)

9 Treasury Management Outturn 2019-20 pdf icon PDF 500 KB

Additional documents:

Decision:

That:

 

1)         the report be recommended to Council;

 

2)        it be noted that the report was presented to Audit Committee on 29th July 2020;

 

3)        the managed repayment of debt over time which illustrates the increased borrowing required to fund key Council priorities, which in turn generate income streams (to repay debt) and provides revenue funding for vital statutory services (as set out in the graph in table 2 of the report), be noted;

 

4)        the asset value created through the Council’s capital investments compared to the debt required to generate the asset value (as set out in the graph in table 2 of the report) be noted;

 

5)        the capital investments made in the Council’s priorities for its community, by category (as set out in table 1 of the report) be noted;

 

6)        the Treasury Management report in Appendix A, that shows that all approved indicators have been adhered to and that prudent and safe management has been adhered to, be noted.

Minutes:

The Executive considered a report relating to the Treasury Management Outturn for 2019-20.

 

The Executive Member for Finance and Housing advised the meeting that the report demonstrated how the treasury management function had effectively managed the Council’s debt and cash balances to support the funding of the delivery of the Council’s key priorities.  It was noted that the report had been considered by the Audit Committee and would be reported to Council.

 

RESOLVED that:

 

1)         the report be recommended to Council;

 

2)        it be noted that the report was presented to Audit Committee on 29th July 2020;

 

3)        the managed repayment of debt over time which illustrates the increased borrowing required to fund key Council priorities, which in turn generate income streams (to repay debt) and provides revenue funding for vital statutory services (as set out in the graph in table 2 of the report), be noted;

 

4)        the asset value created through the Council’s capital investments compared to the debt required to generate the asset value (as set out in the graph in table 2 of the report) be noted;

 

5)        the capital investments made in the Council’s priorities for its community, by category (as set out in table 1 of the report) be noted;

 

6)        the Treasury Management report in Appendix A, that shows that all approved indicators have been adhered to and that prudent and safe management has been adhered to, be noted.