Agenda item

Treasury Management Annual Report and Outturn Prudential Indicators 2017/18 - Report of 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 2017/2018, in accordance with the Prudential Code.


The submitted report outlined the circumstances with regard to treasury management for 2017/2018. It was reported that due to low returns on cash investments new ways to improve investment returns were sought, and that it had been agreed that that alternative investment types to increase return were looked at. The submitted report stated that the cost of borrowing remained low throughout 2017/18, 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 2018, the Council’s external debt was £160.161m, which was £33.000m more than the previous year. It was reported that the average interest rate for borrowing was down to 3.84%, from 4.30% in 2016/17, and that investments totalled £52.443m at 31st March 2018, in comparison to £21.000m at 31st March 2017, earning interest of 0.31% on short term investments, 0.625% on longer term investments, and 2.2% on Property Fund units net of cost.


RESOLVED – (a) That the outturn 2017/18 Prudential Indicators within the submitted report, and those contained within Appendix 1 of the submitted report, be noted.


(b) That the Treasury Management Annual Report for 2017/18 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. 

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