Issue - meetings

To report on the Council’s treasury management activities and Prudential Indicators for 2017/18.

That Cabinet -

(a)       notes the Treasury Management performance position for 2017/18; and

(b)          approves the Prudential and Treasury Indicators for 2017/18.

There was submitted a report by the Portfolio Holder for Finance and Corporate Resources (A.2), which reported on the Council’s treasury management activities and Prudential Indicators for 2017/18.

Cabinet was informed that borrowing and investments had been undertaken in accordance with the 2017/18 Annual Treasury Strategy that had been approved by full Council on 28 March 2017. No external borrowing had been undertaken in 2017/18 for either the General Fund or the Housing Revenue Account.

It was reported that the amount of interest earned from investments remained low because of the continuing unprecedentedly low interest rates existing throughout the year, although the bank base rate had been increased to 0.50% on 2 November 2017. However, due to maximising investment opportunities and cash flow advantages during the year interest returns had been in line with the budget.

It was reported that during 2017/18 the Council had purchased an investment property in the District for £3.244million, including stamp duty of £0.144million. The book value of the property within the Council’s accounts at the end of the year was lower than the purchase price due to the Stamp Duty Land Tax element not forming part of the asset’s ‘carrying’ value in the balance sheet. Rental income on the property of £0.173million had accrued to the Council in 2017/18, which was in accordance with the rate of return reported as part of the original decision to purchase.

Cabinet was reminded that revised Treasury Management Practices had been approved by Council in March 2018 as part of the Treasury Strategy for 2018/19.

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 G V Guglielmi, seconded by Councillor Fairley and:

RESOLVED that Cabinet -

(a)       notes the Treasury Management performance position for 2017/18; and

(b)          approves the Prudential and Treasury Indicators for 2017/18.