The Executive Director Core Services and Service Director Finance (Section 151 Officer) will submit a joint report reviewing the Treasury Management activities carried out by the Council during 2018/19 in accordance with statutory guidance.
The Executive Director Core Services and Service Director Finance (Section 151 Officer) submitted a joint report reviewing the Treasury Management Activities undertaken by the Council during 2018/19 in accordance with statutory guidance.
The report, which was introduced by the Head of Finance and presented by Strategic Finance Manager, the included:
· The agreed Treasury Management Strategy for 2018/19
· An economic summary
· The Council’s borrowing activity
· The Council’s investment activity
· The Prudential and Treasury Indicators
In the ensuing discussion particular reference was made to the following:
· The implications of interest rates on borrowing activity over the last few months and the action taken to ameliorate the impact of potential rises and reduce the council’s exposure to such rises
· It was noted that based on current assumptions, the Council may need to borrow up to £201m over the next two years and the reasons for this were outlined
· Reference was made to and there was a discussion of the potential implications of Brexit on sterling and subsequently upon borrowing requirements. It was reported that the Council had now made use of fixed rate loans in order to ‘insure’ against unexpected rate increases. The current borrowing strategy was being closely monitored and plans were in place in the event that interest rates started to rise
· It was noted that new long term borrowing undertaken in year was generally for 30+ years with the average being 45 years
· In response to questioning it was reported that the Council loaned money to other councils on a short term bases as an effective use of cash balances
(i) That the borrowing and investment activities undertaken during 2018/19 be noted; and
(ii) That the Prudential and Treasury Indicators detailed within Appendix 1 be noted.