Issue - meetings

The Finance Manager introduced the report which provided an updated of the Treasury Management up to 30 September 2023.

Specific attention was drawn to the report’s appendices and the urgent updates provided, with it stated that:

·  Appendix A outlined the Council’s investments, which totalled £15.17 million and were held in money market funds to maintain flexibility in accessing the monies when required. The investment income saved was £370,000 as opposed to £150,000, with £4 million held in short-term loans with other Local Authorities, and £5 million held in long-term loans with the Public Works Loan Board.

The Council’s commitment to borrowing £80 million had been included in the appendix, with the first £40 million to be available from 13 February 2023. The funds would be used to repay the short-term loans, with the remainder to be held until required to support the Capital Programme;

·  Appendix B outlined the Treasury Management indicators, with no indicators having been breached by the Council; and

·  Appendix C included in a new Prudential Indicator, the Liability Benchmark, which compared the Council’s existing loans against its future need for loan debt. It was noted that the Council was liable for an additional borrowing requirement from 2026/27, and the key included within the appendix was explained.

In response to questions, the Finance Manager stated that liability benchmark demonstrated the Council’s ‘Loans CFR’ which took into account the authority’s need to borrow and its existing assets that required financing; but did not necessarily represent the amount being borrowed for that time. The Director of Finance, Resources and Business Improvement emphasised that the graph demonstrated the borrowing scheduled up to 2026 alongside when the Council would need to borrow again; consideration would be needed at that time, particularly to interest rate levels should they still be high. 

RESOLVED: That

1.  The position of the Treasury Management Strategy as at 30 September 2023 be noted; and

2.  No amendments to the current procedures were necessary as a result of the review of activities in 2023/24.