Issue - meetings

Treasury Management Outturn 2020-21

Meeting: 23/09/2021 - Council (Item 47)

47 Treasury Management Outturn 2020-21 pdf icon PDF 515 KB

[A period of 30 minutes will be allowed for Members to debate this item]

 

To consider the Treasury Management Outturn report for the 2020-21 financial year as recommended by the Audit Committee.

 

RECOMMENDATION That Council is asked to note:

 

1)                    the Treasury Management Outturn Report 2020-21 which was agreed at Audit Committee on 15th September 2021;

 

2)                     that all approved indicators set out in the Treasury Management Strategy have been adhered to;

 

3)                     the contents of “Table A”, as set out in the report, which shows the net benefit per council tax band D equivalent, from the income generated less the financing costs on all borrowing to date equates to £10.22 per band D for 2020/21. This credit provides income to the Council to invest in its priority services. This net benefit has increased from the £7.20 benefit estimated in the treasury mid-year report;

 

4)                     that the total external general fund debt is £458m, which reduces to £121m after taking into account cash balances (net indebtedness);

 

5)                     that although the Council is taking the opportunity of new borrowing at low interest rates in 2020/21, external debt is expected to reduce to c£350m by March 2022 as a result of repayment of legacy debt on maturity;

 

6)                     the Council’s realisable asset value of approximately £400m, of which its commercial assets are estimated at approximately £240m.

 

Minutes:

The Council considered a report, set out at Agenda pages 103 to 111, which provided a summary of the Treasury Management operations during the 2020/21 financial year. The report was presented for monitoring and review in accordance with the Council’s Treasury Management practices.

 

Maria Gee stated that the report contained information which should not have been included and did not contain information presented in last year’s report (Appendices A and B). Consequently, Councillor Gee felt that the report should not be supported.

 

Rachel Burgess expressed concern that the net cost of borrowing in the outturn reports kept changing. It was felt that the figures reported to Members should be consistent over time to allow accurate comparison.

 

It was moved by John Kaiser and seconded by Daniel Sargeant that the recommendations in the report be approved.

 

The voting was as follows:

 

For

Against

Abstain

Sam Akhtar

Rachel Bishop-Firth

Keith Baker

Parry Batth

Prue Bray

Shirley Boyt

Laura Blumenthal

Stephen Conway

Rachel Burgess

Chris Bowring

Peter Dennis

 

Phil Cunnington

Carl Doran

 

Michael Firmager

Lindsay Ferris

 

Guy Grandison

Paul Fishwick

 

John Halsall

Maria Gee

 

Pauline Helliar-Symons

David Hare

 

Graham Howe

Clive Jones

 

Pauline Jorgensen

Sarah Kerr

 

Norman Jorgensen

Morag Malvern

 

John Kaiser

Adrian Mather

 

Abdul Loyes

Andrew Mickleburgh

 

Charles Margetts

Ian Shenton

 

Rebecca Margetts

Imogen Shepherd-Dubey

 

Stuart Munro

Rachelle Shepherd-Dubey

 

Gregor Murray

Caroline Smith

 

Barrie Patman

 

 

Jackie Rance

 

 

Angus Ross

 

 

Daniel Sargeant

 

 

Chris Smith

 

 

Wayne Smith

 

 

Alison Swaddle

 

 

Shahid Younis

 

 

 

RESOLVED That the Council note:

 

1)     the Treasury Management Outturn report 2020/21, which was agreed at the Audit Committee on 15 September 2021;

 

2)     that all approved indicators set out in the Treasury Management Strategy have been adhered to;

 

3)     the contents of “Table A”, as set out in the report, which shows the net benefit per Council Tax Band D equivalent from the income generated less the financing costs on all borrowing to date equates to £10.22 per Band D for 2020/21. This credit provides income to the Council to invest in its priority services. This net benefit has increased from the £7.20 benefit estimated in the Treasury Mid-Year Report;

 

4)     that the total external General Fund debt is £458m, which reduces to £121m after taking into account cash balances (net indebtedness);

 

5)     that, although the Council is taking the opportunity of new borrowing at low interest rates in 2020/21, external debt is expected to reduce to c£350m by March 2022 as a result of repayment of legacy debt on maturity;

 

6)     the Council’s realisable asset value of approximately £400m, of which its commercial assets are estimated at approximately £240m.