Issue - meetings

Ellie Dunnet, Chief Accountant, presented the report of the Director of Regeneration and Communities setting out details of the activities of the Treasury Management function as at 30 September 2014 in accordance with CIPFA’s Code of Practice on Treasury Management in Local Authorities.  It was noted that:

·  As at 30 September 2014, the Council held investments totalling £29.83m.  Income generated on these investments to 30 September 2014 was £101k against a budget of £125k.  The adverse variance was a result of interest rates not increasing as expected due to the Bank Rate remaining static at 0.5%.  The average rate of return on investments over this period was 0.69%.

·  The Council was a member of the Capita Assets Services Local Authority Benchmarking Group alongside seven other authorities in Kent and Sussex.  The analysis report as at 30 September 2014 showed that the Council was outperforming in its weighted average rate of return against a very low level of risk.  As at September 2014, Maidstone’s portfolio yielded the third highest rate of return and was assigned second lowest risk profile in the Group.

A Member said that he had attended a seminar recently when it had been suggested the Bank Rate was likely to remain at current levels until autumn 2015.  He suggested that the Council could be achieving better rates for its investments, and offered to forward details to the Officers.

 RESOLVED:

1.  That the mid-year review which has been undertaken of the activities of the Treasury Management function in accordance with CIPFA’s Code of Practice on Treasury Management in Local Authorities be noted.

2.  That no amendments to the current procedures are necessary as a result of the review which has been undertaken of the activities of the Treasury Management function in 2014/15 to date.