Issue - meetings

That the draft Treasury Management Annual Report for 2011/12 be approved.

The Head of Finance introduced the draft Annual Treasury Management Report for 2011/12.  The draft report had been presented and approved at both the Audit Committee and Cabinet meetings held on 25 June, 2012 and 10 July, 2012 respectively.

            In summary, the Annual Report concluded the following:-

• Confirmed that the treasury function operated within the limits detailed within the Treasury Management Policy & Strategy Statement 2011/12;
• The financial environment within which the treasury function operated remained challenging and this was likely to continue for the foreseeable future; and
• The Policy had been implemented in a pro-active manner with security and liquidity as the focus.

Councillor A.M. Halford, as Chair of the Audit Committee proposed that County Council approve the draft Treasury Management Annual Report for 2011/12.  This proposed was seconded by Councillor W. Mullin who thanked the Head of Finance and the Treasury Management Team for the work undertaken in preparing the Annual Report.

Councillor M.J. Peers welcomed the report and asked how much the amount paid per annum by way of interest on the debt of £173.6M was and what action was being taken to reduce the debt.  Councillor C.S. Carver asked if details on how much money the Council had borrowed since 2008 could be provided to Members.

The Head of Finance reported that the average interest rate payable on the £173.6M debt was 5.4%.  The debt consisted of a number of capital expenditure loans which were payable over a number of years with the majority of them being supported by the Welsh Government (WG) through supported borrowing.  The treasury management team continued to monitor opportunities to reduce the level of debt.  The amount paid per annum by way of interest on the debt together with details on how much money the Council had borrowed since 2008 would be provided to Members following the meeting.     

RESOLVED:

That the draft Treasury Management Annual Report for 2011/12 be approved.