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, as a requirement of the Council’s reporting procedures and outlined treasury activity for 2019/20.

The report also sought Members approval of the Prudential Indicators for 2019/20 in accordance with the Prudential Code.

It was reported that for the financial year 2019/20 presented similar circumstances to 2018/19 with regard to treasury management and the main implications of this for the Council were included in the submitted report.

It was also reported that due to the recent low returns for cash investments new ways to improve investment returns were being continually sought. The cost of borrowing remained low throughout 2019/20 and due to the Covid-19 pandemic the cost of shorter term borrowing was anticipated to remain low for a number of years in the future.

The submitted report summarised the capital expenditure and financing for 2019/20; the Council’s underlying borrowing need; the Treasury position as at 31 March 2020; prudential indicators and compliance issues; the economic background for 2019/20; treasury management activity during 2019/20; and performance and risk benchmarking.

It was also reported that the Council’s treasury management activity during 2019/20 had been carried out in accordance with the Council policy and within legal limits; financing costs had been reduced during the year and a saving of £0.268m had been achieved from the original Medium-Term Financial Plan.

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

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

(c) That the submitted report be forwarded to Cabinet and Council in order for the 2019/20 Prudential Indicators to be noted.