Issue - meetings

(a)       That the Committee recommends the draft Treasury Management Strategy 2017/18 to Cabinet on 14 February 2017 and confirms there are no matters which it wishes to raise;

(b)       That the Committee recommends the draft Treasury Management Mid-Year Report 2016/17 to Cabinet on 14 February 2017 and confirms there are no matters which it wishes to raise; and

(c)       That the Committee notes the Treasury Management 2016/17 quarterly update.

The Finance Manager - Technical Accountancy presented the draft Treasury Management Strategy 2017/18 for review and discussion, seeking recommendation to Cabinet.  Also presented was the draft Treasury Management Mid-Year report for 2016/17 prior to consideration by Cabinet, and a quarterly update for information.

Attention was drawn to key areas of the Strategy, although there were no significant changes from the 2016/17 Strategy.  There was a continued focus on reducing cash balances and increasing borrowing.  It was noted that the borrowing limits under Section 9 of the Strategy would be slightly reduced prior to submission to Cabinet and Council.

Councillor Haydn Bateman sought clarity on the advice given by Arlingclose on interest rates.  The Finance Manager said that this was in line with expert predictions and reflected the potential impact of leaving the European Union and economic uncertainty in global markets.  On the investment portfolio, a range of factors were involved such as market conditions, security and yield, however the priority was to maintain liquidity.

In response to questions from Councillor Glyn Banks, the Finance Manager said that the variations in total investment figures over the six month period were due to cash fluctuations during the year i.e. grant funding received and spent during that time.  On debt rescheduling, she explained that this was an expensive option and agreed to a request to share examples showing repayments and savings made.  On further queries, the Strategy allowed for flexibility to ensure borrowing at the right time.  The approach to the investment of money borrowed in advance of need was set out and future long-term borrowing requirements may involve the use of ‘forward starting loans’.

RESOLVED:

(a)       That the Committee recommends the draft Treasury Management Strategy 2017/18 to Cabinet on 14 February 2017 and confirms there are no matters which it wishes to raise;

(b)       That the Committee recommends the draft Treasury Management Mid-Year Report 2016/17 to Cabinet on 14 February 2017 and confirms there are no matters which it wishes to raise; and

(c)       That the Committee notes the Treasury Management 2016/17 quarterly update.