Issue - meetings

(a)       That the draft Treasury Management Annual Report 2018/19 be noted, with no matters to be drawn to the attention of Cabinet on 24 September 2019; and

(b)       That the Treasury Management 2019/20 first quarter update be noted.

The Finance Manager - Technical Accountancy presented the draft Treasury Management Annual Report 2018/19 for review and recommendation to Cabinet.  The Quarter 1 update on matters relating to the Treasury Management Policy, Strategy and Practices 2019/20 was also provided for information, along with the reporting cycle.

In preparation for approving the Treasury Management Strategy for 2020/21, all Members would be invited to the annual training session provided by the Treasury Management Advisors in December.  Details of the training session would be circulated once finalised.

During an overview of Treasury Management activities in the first quarter of 2019/20, it was noted that the Council had taken on additional borrowing towards the end of March 2019 in accordance with the borrowing strategy.

In response to a question from Councillor Carver, the Finance Manager gave a brief overview of the borrowing strategy and explained how individual loans were taken out with consideration given to the debt maturity profile at the time.  Borrowing needs were balanced against capital financing requirements which were subject to movement upwards for capital expenditure funded by borrowing, and downwards by Minimum Revenue Provision (MRP).  MRP regulations required councils to set aside revenue funding for repaying debt which impacted on the overall borrowing position by bringing the capital financing requirement down.  The Finance Manager agreed to incorporate more detail on this in the forthcoming training session.

On the investment portfolio, Councillor Johnson asked about the Council’s investments with other authorities and was informed that the current approach involved more use of Money Market Funds which provided instant access to manage liquidity risk.

The recommendations were moved by Councillor Dunbobbin and seconded by Councillor Woolley.

RESOLVED:

(a)       That the draft Treasury Management Annual Report 2018/19 be noted, with no matters to be drawn to the attention of Cabinet on 24 September 2019; and

(b)       That the Treasury Management 2019/20 first quarter update be noted.