Agenda item

Report of the Managing Director.

The Managing Director submitted a report to update Council on progress against the agreed Capital Investment Fund and to seek approval to increase the fund.

The submitted report stated that the Council had previously approved the principle and establishment of an investment fund to be used for innovative investment opportunities beyond the traditional Treasury Management Strategy in order to achieve greater returns given the low returns on investment. The submitted report confirmed that the established fund was being used as utilised as envisaged, and included Joint Venture vehicles and economic regeneration initiatives, with returns on joint ventures anticipated at over £4m.

The submitted report presented a request from Cabinet to increase the provision to the Capital Investment Fund from £30m to £50m, in anticipation that the next calling on the fund would be used for a new joint venture at Middleton St. George using the procured Housing Joint Venture agreement.

RESOLVED

(a)  That the Capital Investment Fund be increased to £50m.

(b)  That repaid loans are recycled back into the Investment fund.

(c)  That the operation of the fund is delegated to Cabinet in line with previous Council approval.

REASONS

(a)    To allow the Council to take up opportunities to gain investment returns.

(b)    To allow the investment fund to be established and financed.

(c)    To enable Cabinet to consider detailed proposals many of which will be commercially sensitive.