Issue - meetings

This report provides an update on the Treasury Management performance for the period 1 April 2010 to 31 December 2011, as compared against the budget presented to Council on 25 February 2010.

RESOLVED: (i)         That the performance of the Treasury Management activity be noted.

                        (ii)        That the projected underspend of £200k on the Treasury Management budget be noted.

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

Members considered a report which provided an update on the Treasury Management performance for the period 1 April to 31 December 2010, as compared to the budget approved by Council on 25 February 2010.

The report reviewed performance in respect of short term investments, long term borrowing, the Venture Fund and the Treasury Management Budget, in the context of the economic environment for the first nine months of the 2009/10 financial year.

It was noted that:

• Activity indicators suggested a modest growth in the economy, with improvements in consumer spending, despite deterioration of conditions in the labour market and a continuing fall in house prices.
• In respect of short term investments, favourable / competitive interest rates had been obtained whilst ensuring the required liquidity and security of funds.
• The Council’s long-term borrowing portfolio currently totalled £136.1m, with no large concentration of loan maturity, thus spreading the interest rate risk dependency.
• New loan advances of £1,551k had been approved on the Venture Fund, including £650k for easy@york and a £500k contribution to the Treasury Management budget for the economic downturn.
• The projected out-turn on the 2010/11 Treasury Management budget was £11,536k, an estimated underspend of £200k.

RESOLVED: (i)         That the performance of the Treasury Management activity be noted.

                        (ii)        That the projected underspend of £200k on the Treasury Management budget be noted.

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