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Treasury Management Monitor 2 and Prudential Indicators 10/11

Meeting: 16/11/2010 - Executive - for meetings from 03/06/00 to 26/04/11 (Item 111)

111 Treasury Management Monitor 2 and Prudential Indicators 10/11 pdf icon PDF 188 KB

This report provides an update on the Treasury Management performance for the period 1 April 2010 to 30 September 2010, compared against the budget presented to Council on 25 February 2010.

Additional documents:

Decision:

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

 

                        (ii)        That the projected underspend of the Treasury Management budget by £150k be noted.

 

                        (iii)       That the change in the Treasury Management strategy to increase the target interest rate on borrowing from 4.5% to 5.5%, in line with the increase in PWLB rates due to the Comprehensive Spending Review, as detailed in paragraph 28 of the report, be approved.

 

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

Minutes:

Members considered a report which provided an update on the Treasury Management performance for the period 1 April to 30 September 2010, as compared against the budget presented at Council on 25 February 2010.

 

The report reviewed performance on short-term investments, long-term borrowing, the Venture Fund and the Treasury Management budget, highlighting the economic environment of the first six months of the year and the implications of the Chancellor’s Comprehensive Spending Review announced on 20 October.  In respect of the latter, approval was sought to alter the Council’s borrowing strategy by increasing the target borrowing rate from 4.5% to 5.5%, to reflect the increase in Public Works Loan Board (PWLB) rates.  An underspend of £150k was currently projected on the Treasury Management budget, the same as at monitor 1.

 

Under the Prudential Code, the Prudential Indicators set by Council in February 2010 must be reviewed.  Details of the indicators, their estimated and actual out-turns, were provided in Annex A to the report.  Prudential Indicators had not been breached during the first six months of 2010/11.

 

Having noted the comments of the Labour Group Spokespersons on this item, it was

 

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

 

                        (ii)        That the projected underspend of the Treasury Management budget by £150k be noted.

 

                        (iii)       That the change in the Treasury Management strategy to increase the target interest rate on borrowing from 4.5% to 5.5%, in line with the increase in PWLB rates due to the Comprehensive Spending Review, as detailed in paragraph 28 of the report, be approved. 1

 

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


 

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