Issue - meetings

Treasury and Prudential Indicator Management Report: Quarter 2

Meeting: 05/12/2019 - Cabinet (Item 109)

109 Treasury and Prudential Indicator Management Report: Quarter 2 pdf icon PDF 191 KB

To consider and decide on the recommendations as set out in the attached report.

Additional documents:

Decision:

RESOLVED –

  1. That the 2019/2020 Treasury Management and Prudential Indicator position be noted; and
  2. That the forecast interest from investment and bank interest for 2019/20 was £687,000, which was the same as the approved budget be noted.

 

 

REASON FOR DECISION:

Ensuring effective cash flow management was vital in order to support all the services provided by the Council.  The interest received from the Council’s investments was an important source of income in helping the Council set a balanced budget

Minutes:

Jane Fineman, Head of Finance and Procurement introduced this Report that monitored compliance with the Treasury Management Policy and Strategy for the Period 1 April and 30 September 2019 and included the following:

 

-       The projected interest from investments and bank interests for 2019/20 was forecast to be £687,000 which was the same as the approved budget.

-       The Bank of England interest rate remained at 0.75%.  There was not expected to be any further rise in interest rates until 2020.

-       The outstanding Public Works Loan Board (PWLB) loan was £2m as at 30 September 2019.  £1m was due to be paid in January 2020.  The interest on borrowing for this year would be £50,000. 

-       In October 2019 the PWLB announced that the rate of interest offered to local authorities would rise by 1%.  And this would be effective immediately. 

-       Borrowing from the PWLB had increased significantly in recent years due to the low rates on offer. As such, Government decided to restore interest rates to the level available in 2018 in order to dampen that demand.  The change applied to new loans so it didn’t affect the Council’s current borrowing rate. 

-       The Property Fund continued to do well.  5.18% had been received in dividends.

-       There was an overall gain on investment of £1.775m.

 

RESOLVED –

  1. That the 2019/2020 Treasury Management and Prudential Indicator position be noted; and
  2. That the forecast interest from investment and bank interest for 2019/20 was £687,000, which was the same as the approved budget be noted.

 

 

REASON FOR DECISION:

Ensuring effective cash flow management was vital in order to support all the services provided by the Council.  The interest received from the Council’s investments was an important source of income in helping the Council set a balanced budget.


Meeting: 12/11/2019 - Finance and Governance Cabinet Advisory Board (Item 67)

67 Treasury and Prudential Indicator Management Report: Quarter 2 pdf icon PDF 192 KB

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

Additional documents:

Minutes:

Jane Fineman, Head of Finance and Procurement introduced this Report that monitored compliance with the Treasury Management Policy and Strategy for the period 1 April to 30 September 2019 and included the following:

 

-       The projected interest from investments  and bank interests for 2019/20 was forecast to be £687,000 – the same as the approved budget.

-       The Bank of England interest rate remained at 0.75% and there was not expected to be another rise until late 2020.

-       The outstanding Public Works Loan Board (PWLB) loan was £2m as at 30 September 2019. A further £1m was due to be repaid in January 2020. The interest on this borrowing would be £50,000 this financial year. 

-       In October 2019 PWLB announced the rate of interest offered to Local Authorities would rise by 1% with immediate effect.

-       Borrowing from PWLB had increased significantly in recent years. Government decided to restore interest rates to the level available in 2018 in order to dampen demand. But the change only applied to new loans so did not affect the Council’s current borrowing rate.

-       The Property Fund continued to do well with 5.18% received in dividends. 

-       There was an overall gain on investment of £1.775m.

 

RESOLVED – That the recommendations to Cabinet set out in the Report be supported.