Issue - meetings

This report ensures the Council is implementing best practice in accordance with the revised 2009 (Chartered Institute of Public Finance and Accountancy) Code of Practice for Treasury Management (as revised).  It updates on the Treasury Management activities for the period 1 April 2011 to 31 December 2011

RESOLVED:       i)       That the Treasury Management activities in 2011/12 be noted.

ii)       That the movements in the Prudential Indicators at Annex A be received and noted.

REASON:                   To ensure the continued performance of the Council’s Treasury Management function.

Consideration was given to a report which provided an update on the Treasury Management activities for the period 1 April 2011 to 31 December 2011.

The report reviewed the Annual Investment Strategy and investment and borrowing portfolio’s and compliance with Prudential Indicators.

It was noted that:

·        Investment rates had continued at historical low levels, with the average level of funds available for investment purposes in the first nine months of 2011/12 of £58.085m, with a 1.22% rate of return.

·        The rate of return during this period had shown that favourable / competitive interest rates had been obtained for investments whilst ensuring the required liquidity and security of funds.

·        The Administrative Accommodation project increased the need to borrow in 2011/12 and 2012/13 which would require close market monitoring to take advantage of favourable rates.

·        The Council’s long-term borrowing portfolio had started the year at £133.1m with new borrowing of £7m in August 2011 and £5m in November 2011 giving a current loan balance of £140.1m.

·        Monitoring details of the Prudential Indicators were set out at Annex A of the report together with the revised limits for the Housing Revenue Account reform.

RESOLVED:       i)       That the Treasury Management activities in 2011/12 be noted.

ii)       That the movements in the Prudential Indicators at Annex A be received and noted.

REASON:                   To ensure the continued performance of the Council’s Treasury Management function.