Agenda item

Report of the Managing Director

The Managing Director submitted a report (previously circulated) to provide important information regarding the regulation and management of the Council’s borrowing, investments and cash-flow. The submitted report also sought approval of the Prudential Indicators results for 2019/2020, in accordance with the Prudential Code.

The submitted report outlined the circumstances with regard to treasury management for 2019/2020. It was reported that due to low returns on cash investments new ways to improve investment returns continued to be sought. The submitted report stated that the cost of borrowing remained low throughout 2019/20, and that it was anticipated that the cost of shorter term borrowing would remain low for a number of years in the future.

The submitted report stated that the Council had complied with its legislative and regulatory requirements, and that the need for borrowing was only increased for capital purposes.

The submitted report stated that at 31st March 2020, the Council’s external debt was £181.661m, which was £2.500m more than the previous year. It was reported that the average interest rate for borrowing was down to 2.72%, from 3.22% in 2018/19, and that investments totalled £56.799m at 31st March 2020, in comparison to £55.849m at 31st March 2019, earning interest of 0.75% on short term cash investments, and 2.23% on Property Fund units net of cost.

It was reported that financing costs had been reduced during the year and a saving of £0.268m had been achieved from the original MTFP.

RESOLVED – (a) That the outturn 2019/20 Prudential Indicators within the submitted report, and those in Appendix 1 of the submitted report, be noted.

(b) That the Treasury Management Annual Report for 2019/20, be noted.

REASONS - (a) In order to comply with the Prudential Code for Capital Finance in Local Authorities.

(b) To inform members of the Performance of the Treasury Management function.

(c) To comply with the requirements of the Local Government Act 2003.