Issue - meetings

Meeting: 19/07/2019 - Cabinet (Item 25)

25 Cabinet Members' Items - Report of the Corporate Finance and Governance Portfolio Holder - A.5 - Treasury Management Performance 2018/19 pdf icon PDF 208 KB

To report on the Council’s treasury management activities and Prudential Indicators for 2018/19.

Decision:

RESOLVED that Cabinet -

           

(a)       notes the Treasury Management performance position for 2018/19; and

 

(b)          approves the Prudential and Treasury Indicators for 2018/19.

Minutes:

There was submitted a report by the Portfolio Holder for Corporate Finance and Governance (A.5), which reported on the Council’s treasury management activities and Prudential Indicators for 2018/19.

 

Cabinet was informed that borrowing and investments had been undertaken in accordance with the 2018/19 Annual Treasury Strategy that had been approved by full Council on 27 March 2018. No external borrowing had been undertaken in 2018/19 for either the General Fund or the Housing Revenue Account.

 

It was reported that the amount of interest earned from investments did increase during the year as the bank base rate had increased to 0.75% on 2 August 2018, but compared to historic interest figures it still remained low because of the continuing unprecedentedly low interest rates. Estimated income increased from the original estimate of £0.236 million to £0.416 million with the outturn figure being £0.468 million.

 

It was reported that the Council continued to hold one property within its Commercial Investment Portfolio, which had a balance sheet at 1 April 2018 of £3.100 million. This ‘book value’ was reduced by the Council’s appointed valuers to £2.300 million at the end of 2018/19. However, this was an ‘accounting’ valuation and not a direct value that could be achieved on the market if sold. Rental income on the property of £0.207 million had accrued to the Council in 2018/19, which was in accordance with the budget.

 

The treasury performance figures for the year were set out in Appendix A to the Portfolio Holder’s report, together with the Prudential Indicators attached as Appendix B, for Cabinet’s consideration.

 

Having considered the information submitted:

 

It was moved by Councillor Stock OBE, seconded by Councillor Honeywood and:

 

RESOLVED that Cabinet -

           

(a)       notes the Treasury Management performance position for 2018/19; and

 

(b)          approves the Prudential and Treasury Indicators for 2018/19.