Issue - meetings

This report presents an update on the Treasury Management performance for the period 1 April 09 to 31 December 2009 compared against the budget presented to Council on 21 February 2009.

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

                        (ii)        That the projected reduction in overspend on the Treasury Management budget, to a figure of £429k, 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 2009 to 31 December 2009, as compared against the budget presented to Full Council on 21 February 2009.

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 highlighted that:

• The third quarter of the financial year had seen signs that the economy was exiting recession, as well as some improvements in the labour market and the housing market.
• In respect of short term investments, the in-house team was forecast to achieve a net trading surplus of £959k in 2009/10, equivalent to a return of 2.21%.
• The Capital Financing Requirement for 2009/10 was £118.9m, which gave a borrowing requirement of £21.1m – higher than originally expected due to capital receipts not being realised.
• Since the Administrative Accommodation project would substantially increase the need to borrow over the next three years, the markets would be closely monitored to ensure advantage was taken of favourable rates in 2009/10.
• Total loan advances on the Venture Fund stood at £785k, including £650k for the easy@york programme.
• The projected out-turn on the Treasury Management budget was £9,110k, resulting in a projected overspend of £429k (£100k less than the Monitor 2 projection).

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

                        (ii)        That the projected reduction in overspend on the Treasury Management budget, to a figure of £429k, be noted.

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