Issue - meetings

That the Treasury Management 2017/18 quarterly update be noted.

The Finance Manager (Technical & Capital) presented the quarterly update on matters relating to the Council’s Treasury Management Policy, Strategy and Practices 2017/18 to the end of February 2018.

The update reflected the current strategy to maximise short-term borrowing whilst monitoring interest rates; an approach which was supported by the treasury management advisors Arlingclose Ltd.  As requested previously, a list was provided of the regulated financial institutions which had approved the Council’s application to opt up to ‘professional’ client status under the Markets in Financial Instruments Directive (MiFID II).  The Finance Manager agreed to follow up Councillor Johnson’s query on whether two of the companies were the same.

In response to questions from Councillor Dolphin on the long-term borrowing analysis, it was explained that a number of new loans had been taken out around the same time due to debt restructuring.  Explanation was also given on the Public Works Loans Board used by most councils to access long-term borrowing.

Sally Ellis asked if the Wales Audit Office (WAO) representatives had any concerns about risk arising from the change to the Council’s policy on Minimum Revenue Provision.  Mr. Richard Harries welcomed the Council’s engagement with WAO colleagues on the matter and spoke in support of the Council’s decision and the level of information which had been shared.  He said that the guidance from Welsh Government was awaited and that the WAO sought to work with councils to ensure that their chosen method was prudent.

The Chief Executive provided background to the review of the policy leading to the recommended change which had been formally agreed by full Council earlier in the month.  Following advice from the treasury management advisors and WAO colleagues, the change had been recommended on the basis that it was considered to be no less prudent than the previous method (and in the opinion of the Chartered Institute of Public Finance & Accountancy, was suggested to be more prudent).

RESOLVED:

That the Treasury Management 2017/18 quarterly update be noted.