Issue - meetings

That the Council’s Treasury Management Strategy 2014/15 be approved.        

The Council received the report of the Head of Finance which presented to Council the recommendations of the Cabinet in relation to Treasury Management Strategy for 2014/15.

Councillor Aaron Shotton, the Leader and Cabinet Member for Finance proposed the acceptance of the recommendations as outlined within the report.  This was seconded by Councillor Kevin Jones.

The Head of Finance detailed the background to the report and drew Members’ attention to section 3 of the report to Cabinet and the detailed discussions undertaken at the Audit Committee meeting on 29 January 2014 on Investments and Debt.  Cabinet had also discussed options that could be considered on the issue of Treasury Management which the Head of Finance detailed. 

In response to a query from Councillor Alison Halford about the level of debt, the Finance Manager – Technical Accountancy said that the actual level of debt was £172m.  A legal limit had to be set to allow headroom and whilst it was not anticipated that this level would be reached, it could not be exceeded. 

Councillor Mike Peers queried whether a strategy was in place to prevent a reoccurrence of issues such as Landsbanki.  The Head of Finance responded that there was always a risk that investments would not be returned but the strategy was in place to limit the risk.  The issue of Landsbanki was now closed and Flintshire County Council was no longer a creditor of the bank.  In response to a question from Councillor Clive Carver, the Head of Finance advised that the Council had previously recovered £1.9m and £1.4m following the sale of the debt which was 92% of the original investment of £3.7m.  It was important to note that this payment had been recovered now rather than having to wait a number of years for its return.  Councillor Glyn Banks thanked the Head of Finance, Corporate Finance Manager and Finance Manager – Technical Accountancy for their work on the Landsbanki issue. 

RESOLVED:

That the Council’s Treasury Management Strategy 2014/15 be approved.