Issue - meetings

The Head of Finance and Resources presented the report of the Director of Regeneration and Communities setting out details of the activities of the Treasury Management function for the 2013/4 financial year in accordance with CIPFA’s Code of Practice on Treasury Management in Local Authorities.  It was noted that:

·  The balance of investments as at 31 March 2014 was £19.175m.  The average interest rate for the Council’s investments over the year was 0.77%.  Investment income for the year was £231k compared to a budget of £250k.  The shortfall was due to rates falling during the year.

A Member suggested that a review be undertaken to see whether the Council could gain better rates for its investments which, he argued, were losing value due to inflation.

The Head of Finance and Resources explained that, in order to protect taxpayers’ money, the Council’s investment priorities were:

·  Security of Capital

·  Liquidity

·  Yield

The aim was to achieve the optimum return on investments with proper levels of security and liquidity.  Funds were invested short term to maintain the liquidity required to reinvest for longer periods if rates increased and to fund (a) the significant transport and infrastructure improvements needed to support the Local Plan and (b) other capital projects.  However, the Council’s Treasury Advisers, Sector, could be asked for advice on whether the Council could achieve better rates for its investments.

RESOLVED:

1.  That the review of the financial year 2013/14 which has been compiled in accordance with the Code of Practice on Treasury Management, as adopted by the Authority, be noted. 

2.  That a review should be undertaken to ensure that the Council is getting the maximum return possible for its investments, but no other amendments are necessary to current procedures as a result of the review of Treasury Management activities during 2013/14.