Issue - meetings

To consider the Treasury Management Annual Report 2015-16.

Members received the Treasury Management Annual Report 2015/16 which highlighted the Council’s treasury position as at 31 March 2016, set out the treasury management decisions taken during 2015/16 and showed that the Council had complied with its strategy and the prudential indicators that were set in February 2015.

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

·         With regards to Capital, the actual capital expenditure for 2015/16 had been £42.2m.  The Capital financing requirement as at 31 March 2016 had been £211.8m.

·         Members were informed that the total external borrowing for 2015/16 was £132.2m.  The new interest free loans from the Local Enterprise Partnership totalled £0.6m.

·         Investments at 31 March 2016 stood at £63.3m; Fund managers £21.5m, In house £30.0m and internal loans (Wokingham Housing Limited etc.) £11.8m. 

·         Councillor Margetts questioned what was meant by in house investments.  Martin Jones explained that the Council, via brokers, invested in other councils, often on a short term basis, for the rate of return which could be received.

·         Councillor Rowland asked why the level of in house investments was higher than those made by the Council’s fund managers.  The Committee was informed that the fund managers often made longer term investments. 

·         The return on investments for 2015/16 was £0.9m.  The average rate of return was 1.01%.

·         Councillor Jorgensen asked about the level of capital expenditure.  Rob Stubbs indicated that when the capital programme was approved it tended to be for schemes.  Ways of making improvements to the projection and forecasting were under consideration. 

·         As at 31st March 2016 there had been no breaches of the Treasury Strategy during 2015-16.

·         Councillor Whittle asked whether the Council had any currency and was informed that it did not.

·         It was noted that at the time the report was compiled Age Concern Woodley had not gone into administration. The Council’s usual debt recovery policy would be followed.

RESOLVED:  That

1) The treasury management annual report for 2015/2016 be noted;

2) The actual 2015/2016 prudential indicators within the report be noted.