Issue - meetings

Report No: CAB/JT/18/053

Portfolio Holder: SEBC Cllr Ian Houlder

Chairman of the Committee: SEBC Cllr Sarah Broughton

Lead Officer: Gregory Stevenson

RECOMMENDED TO SEBC COUNCIL: (18 December 2018)

That, subject to the approval of Council, the Mid-Year Treasury Management Report 2018-2019 and Investment Activity (1 April to 30 September 2018), being Report No: TMS/SE/18/004, be approved.

(Report No: CAB/JT/18/053)

The Joint Committee received this report which provided information on the Council’s Mid-Year Treasury Management Report and also summarised the investment activities for the period to 30 September 2018.

The total amount invested at 1 April 2018 was £36.35m and at 30 September 2018 was £44.95m.  The increase in balances over the period was due primarily to timing differences in respect of the collection of local taxes, the payment of precepts and changes in the profile of the Capital Programme.

The 2018/19 Annual Treasury Management and Investment Strategy Statements (Report No: COU/SE/18/002 approved 20 February 2018) set out the Council’s projections for the current financial year.  The budget for investment income in 2018/19 was £308,000 which was based on a 0.70% target average rate of return on investments. 

As at the end of September 2018, interest actually earned during the first six months of the financial year amounted to £155,169 (average rate of return of 0.688%) against a profiled budget for the period of £154,000 (average rate of return of 0.70%); a budgetary surplus of £1,169.

The report also included assumptions on borrowing for capital projects included within it.  The borrowing was based around four specific projects as per their agreed business cases.  The report included a summary of capital borrowing budget 2018-2019 and a summary of capital borrowing for Quarter Two – all of which was currently internally borrowed from the Council’s overall cash balances.  As at the end of Quarter Two, there had been no requirement to borrow externally, therefore there was no interest payable in this particular quarter.

RECOMMENDED TO SEBC COUNCIL: (18 December 2018)

That, subject to the approval of Council, the Mid-Year Treasury Management Report 2018-2019 and Investment Activity (1 April to 30 September 2018), being Report No: TMS/SE/18/004, be approved.