Issue - meetings

To provide Members with an update on Treasury Management performance and activity to ensure best practice is maintained  (report of the Deputy Chief Executive – Corporate Development (S151) enclosed).

Consideration was given to the report of the Deputy Chief Executive – Corporate Development (S151 Officer) which provided members with an update on Treasury Management performance and activity, to ensure best practice was maintained.

The Portfolio Holder for Finance, Commercialisation, UKSPF and Levelling up introduced the report, which included the Mid Term Treasury Management Update at Appendix A.

The following points were raised:

·       Section 9 of the Mid Term Treasury Management update referred to the CCLA Money Market Fund – how frequently was this interest paid?  It was believed that this could be paid monthly.

o   The Portfolio Holder would provide a response to this in due course.

DECISION:

That the Mid Term Treasury Report 2023/24 at Appendix A be received and approved, as required by the CIPFA Code of Practice on Treasury Management.

To provide members with an update on Treasury Management performance and activity to ensure best practice is maintained (report of the Deputy Chief Executive - Corporate Development (S151) enclosed).

Consideration was given to the report of the Deputy Chief Executive - Corporate Development (S151) which provided members with an update on Treasury Management performance and activity to ensure best practice was maintained.

The Chief Finance Officer (PSPS) introduced the report on behalf of the Interim Treasury and Investment Manager (PSPS) and the following main points were raised:

• The report detailed the treasury position as at 30 September 2023 and had been written in accordance with the requirements of the CIPFA Code of Practice on Treasury Management;
• The Treasury Management function was administered by PSPS on behalf of the Council;
• The regulatory environment placed responsibility on members for the review and scrutiny of treasury management policy and activities on a quarterly basis and the Council had delegated these duties to the Governance and Audit Committee;
• The Mid Term Report 2023/2024 at Appendix A included updates on the following areas:
  • Economics and Interest Rate Forecast;
  • Treasury Management Strategy Statement (TMSS);
  • The Council’s capital position;
  • Borrowing;
  • Debt rescheduling;
  • Compliance with Treasury and Prudential Limits;
  • Annual Investment Strategy; and
  • Changes in Risk Appetite; and
• Appendix A1 detailed the following:
  • General Fund Capital Expenditure 2023/2024;
  • Financing of General Fund Capital Expenditure 2023/2024; and
  • Housing Revenue Account Capital Expenditure 2023/2024.

Members considered the report and made the following comments:

• Members thanked the Finance team for their work.

• Members queried the £67.456million HRA debt:
  • Was the interest rate of the loan fixed for the whole period; and
  • Had authorities with HRA loans collectively appealed to central government to cancel the debt;
    • The Chief Finance Officer (PSPS) confirmed that the rate was fixed until expiry of the loan period. Enquiries with external advisers were being made to ascertain whether a discount could be obtained if the debt was repaid early; and
    • No appeal had taken place to central government regarding the HRA debt.

AGREED:

a)    That after consideration by the Governance and Audit Committee, the report and treasury activity detailed at Appendix A be noted; and

b)    That the comments of the Governance and Audit Committee be noted and considered by Council at their meeting on 22 November 2023.