Issue - meetings
Treasury Management Annual Report 2018/19 and mid-year report 2019/20
Meeting: 10/12/2019 - Cabinet (Item 31)
31 Treasury Management Annual Report 2018/19 and mid-year report 2019/20 
PDF 451 KB
Report by the Chief Operating Officer
Additional documents:
Minutes:
31.1 The Cabinet considered a report by the Chief Operating Officer.
31.2 It was RESOLVED – to note the Treasury Management performance in 2018/19 incorporating the Mid Year review for the first half of 2019/20.
Reason
31.3 This report fulfils the requirement to submit an annual/half yearly report in the form prescribed in the Treasury Management Code of Practice. Short term lending throughout the 18 month period covered achieved returns between 0.65% and 1.08%. The key principles of security, liquidity and yield are still relevant. Officers are currently investigating further opportunities within the strategy to minimise costs and increase investment income within the key principles.
Meeting: 22/11/2019 - Audit Committee (Item 26)
26 Treasury Management Annual Report 2018/19 and mid-year report 2019/20 PDF 452 KB
Report by the Chief Finance Officer
Minutes:
26.1 The Committee considered a report by the Chief Finance Officer, who confirmed that during 2018/19 the County Council had invested £5m in the CCLA Property Fund, undertaken no new borrowing, and had repaid £23m out of £29m in LOBO (Lender Option Borrower Option) Loans in efforts to maximise income and drive down the cost of debt. The average rate of debt paid off was 8.13%. It was also noted that the Council was fully compliant with the Prudential Indicators.
26.2 The Committee commented on the repayment of the LOBO loans, which had been subject to a long standing objection to the accounts, and methods by which opportunities to invest or pay down debt are generated. Ian Gutsell confirmed that the Lender had exercised their option for the LOBO loan to be repaid, and that officers in the Treasury Management Team engage with the cash management and investment markets daily, both directly and via the Council’s brokers. The Committee advised officers to be willing to take independent advice when considering investment options.
26.3 In respect of future borrowing, Ian Gutsell confirmed that the recent decision of the Public Works Loan Board to increase its interest rate had broadened the range of potential options. A query was raised about the Capital Financing Requirement (CFR) and the reduction in the Council’s overborrowed position. It was explained that the CFR was a matter of judgement on the appropriateness of the Council’s level of debt and borrowing, which was subject to cyclical variations.
26.4 The Committee RESOLVED to note the Treasury Management performance in 2018/19 incorporating the Mid-Year review for the first half of 2019/20.