Issue - meetings

(a)       That the draft Treasury Management Strategy 2016/17 and Policy Statement 2016-19 be recommended to Cabinet on 16/02/16;

(b)       That the draft Treasury Management Practices and Schedules 2016-19 be recommended to Cabinet on 16/02/16, with the inclusion of the suggested changes;

(c)       That the draft Treasury Management Mid-Year Report 2015/16 be recommended to Cabinet on 16/02/16; and

(d)       That the Treasury Management 2015/16 quarterly update be noted.

The Finance Manager - Technical Accountancy presented the draft Treasury Management Strategy 2016/17 for review and discussion, seeking recommendation to Cabinet, in conjunction with the draft Treasury Management Policy Statement and draft Treasury Management Practices 2016-19.  Section 1.05 of the report detailed the changes to four areas of the Strategy, although there were no major differences from the previous year.  The annual Treasury Management training session for Members had taken place the day before the meeting.  The report also sought comments from the Committee on the draft Treasury Management Mid-Year report for 2015/16 prior to consideration by Cabinet, and provided a quarterly update for information.

In response to a query from Councillor Arnold Woolley on the Policy Statement, the Finance Manager explained that only significant changes would need to be brought back for consideration by Members, however she did not envisage this to be necessary.

On Treasury Management Practices 2016-19, Mr. Paul Williams suggested further clarification on the sections TPM4 and TPM5 on Part 1 and on the sections for approved methodology for changing counterparty limits and money laundering in Part 2.  The Finance Manager agreed to liaise with Mr. Williams following the meeting to agree the revised wording.

Councillor Glyn Banks asked if anything could be set up at this stage to take advantage of current interest rates.  The Finance Manager explained that the borrowing requirements would need to be identified before entering into a deal and that the best approach would need to be considered.  She added that Mr. Williams’ suggestion at the training session would be discussed with the advisors.

In response to a question from Councillor Ian Dunbar on the need for more detail on Lender Option Borrower Option (LOBOs), the Finance Manager provided explanation but said it was not advisable to reschedule those debts at this stage as the premium would not be cost-effective.

When asked about the contract with Arlingclose, the treasury management advisors, the Finance Manager explained that this had now expired and was currently being tendered.

RESOLVED:

(a)       That the draft Treasury Management Strategy 2016/17 and Policy Statement 2016-19 be recommended to Cabinet on 16/02/16;

(b)       That the draft Treasury Management Practices and Schedules 2016-19 be recommended to Cabinet on 16/02/16, with the inclusion of the suggested changes;

(c)       That the draft Treasury Management Mid-Year Report 2015/16 be recommended to Cabinet on 16/02/16; and

(d)       That the Treasury Management 2015/16 quarterly update be noted.