Issue - meetings

Report No: CAB/JT/19/010

Portfolio Holder: FHDC Cllr Stephen Edwards

Lead Officers: Rachael Mann and Greg Stevenson

RECOMMENDED TO FHDC COUNCIL: (20 March 2019)

That the Treasury Management Report for 2018-2019 for the period 1 April to 31 December 2018, as detailed in Report No: PAS/FH/19/008, be approved.

The Joint Committee considered this report, which sought approval for recommendations emanating from FHDC’s Performance and Audit Scrutiny Committee in respect of Forest Heath’s Treasury Management Report 2018-2019 (third quarter).  A summary of investment activities for the first nine months of 2018-2019 was also provided.

Members noted that the total amount invested at 1 April 2018 was £16.005m and at 31 December 2018 £19.800m.  The increase in balances over this 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 sets out the Council’s projections for the current financial year.  The budget for investment income in 2018/19 was £224,000 which was based on a 0.75% target average rate of return on investments. 

As at the end of December 2018 interest actually earned during the first nine months of the financial year amounted to £102,266 against a profiled budget for the period of £168,000; a budgetary deficit of £65,734.  This was due to lower cash balances as a result of re-phasing of some income generated projects, as detailed in paragraph 1.1.4 of Report No: PAS/FH/19/008.

Report No: PAS/FH/19/008 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 (West Suffolk Operational Hub; Mildenhall Hub; Barley Homes - Loan Facility; Investing in our Growth Fund).  The report included a summary of the capital borrowing budget for 2018-2019, and a summary of capital borrowing for Quarter Three.  As at the end of quarter three, there had been no requirement to borrow externally over and above the £4.0m Barclays loan.  Therefore the only interest payable for Quarter Three was the £85,032.33 relating to this loan.  The detail on these budgets were laid out in paragraph 2.1.1 of Report No: PAS/FH/19/008.

Councillor Stephen Edwards, FHDC’s Portfolio Holder for Resources and Performance, drew relevant issues to the attention of the Joint Committee.

RECOMMENDED TO FHDC COUNCIL: (20 March 2019)

That the Treasury Management Report for 2018-2019 for the period 1 April to 31 December 2018, as detailed in Report No: PAS/FH/19/008, be approved.