Agenda and draft minutes

St Edmundsbury Treasury Management Sub-Committee - Monday 19 November 2018 10.30 am

Venue: Mayor's Parlour

Contact: Christine Brain Email: christine.brain@westsuffolk.gov.uk

Note: This was the last meeting of the Treasury Management Sub-Committee before it’s dissolution on 6 May 2019. As a result, the minutes of the meeting remain as drafted following the meeting and cannot be confirmed by the Treasury Management Sub-Committee and signed by the Chair. This is consistent with all other dissolved committees and bodies.

Items
No.	Item
81.	Substitutes Any Member who is substituting for another Member should so indicate, together with the name of the relevant absent Member. Minutes: There were no substitutes declared.
82.	Apologies for Absence Minutes: There were no apologies for absence received.
83.	Minutes PDF 85 KB To confirm the minutes of the meeting held on 16 July 2018 (copy attached). Minutes: The minutes of the meeting held on 16 July 2018, were confirmed as an accurate record and signed by the Chairman.
84.	Public Participation Members of the public who live or work in the Borough are invited to put one question / statement of not more than 3 minutes duration relating to items to be discussed in Part 1 of the agenda only. If a question is asked and answered within 3 minutes, the person who asked the question may ask a supplementary question that arises from the reply. A person who wishes to speak must register at least 15 minutes before the time of the meeting is scheduled to start. There is an overall limit of 15 minutes for public speaking, which may be extended at the Chairman’s discretion. Minutes: There were no questions/statements from members of the public.
85.	Mid-Year Treasury Management Report 2018-2019 and Investment Activity (1 April to 30 September 2018) PDF 101 KB Report No: TMS/SE/18/004 Minutes: The Sub-Committee received Report No: TMS/SE/18/004, which provided a summary of investment activities for the first six months of 2018-2019. The total amount invested at 1 April 2018 was £36.35m and at 30 September 2018 £44.95m. The increase in balances over the period was due primarily to timing differences in respect of collection of local taxes; Council Tax and Non-Domestic Rates; payment of precepts i.e. to Suffolk County Council, Suffolk Police and central government; and changes in the profile of the Capital Programme. The 2018-2019 Annual Treasury Management and Investment Strategy Statements sets out the Council’s projections for the current financial year. The budget for investment income in 2018-2019 was £308,000 which was based on a 0.70% target average rate of return on investments. At the end of September 2018, interest earned during the second quarter amounted to £155,169 (average rate of return 0.688%) against a profiled budget of £154,000 (average rate of return 0.70%), creating 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: - West Suffolk Operational Hub - Suffolk Business Park Loan - Investing in our Growth Fund; and - Olding Road (DHL Depot) The report included a summary of the capital borrowing budget for 2018-2019, and a summary of capital borrowing for quarter two – all of which was currently internally borrowed from the Councils overall cash balances. It was reported that at the end of quarter two, there had been no requirement to borrow externally, therefore there was no interest payable in quarter one. Finally, with the uncertainty still surrounding the Brexit negotiations, the financial markets still remained volatile with low rates of return still being offered by the banks and building societies. The Treasury Team would continue to closely monitor the situation and provide updated information as it became available. The Sub-Committee scrutinised the investment activity for 1 April to 30 September 2018, and asked questions to which officers duly responded. The Sub-Committee was pleased to see that to date, there had been no requirement to borrow externally, and noted that future reports would include a breakdown of the various projects in the “Investing in Our Growth Fund”. It was then proposed by Councillor David Roach, seconded by Councillor Patricia Warby and with the vote being unanimous, it was RECOMMENDED: That subject to the approval of the Joint Executive (Cabinet) Committee and Council the Mid-year Treasury Management Report 2018-2019 (Report No: TMS/SE/18/004), be approved.
86.	Date of Next Meeting The next meeting of the Sub-Committee has been set for Monday 21 January 2019, to commence at 10.30am. Minutes: The Sub-Committee noted that the next meeting of the Sub-Committee would be held on Monday 21 January 2019, commencing at 10.30am.