The Sub-Committee received Report number
FRS/WS/23/005, which provided a comprehensive assessment on
investment activities for West Suffolk Council from 1 April to 30
September 2023.
The Council held investments of
£54,500,000 as at 30 September
2023. Interest achieved in the first half of the financial year
amounted to £1,271,924.94 against a budget for the period of
£357,500.
External borrowing as at 30 September 2023 was £9,625,000, a
reduction of £125,000 from 1 April 2023 (this related to the
repayment plan for the recent PWLB £10 million, 40 year
loan), with the Council’s level of internal borrowing
increasing slightly to £48,028,084 as at 30 September 2023.
Overall borrowing (total of both external and internal) was
expected to increase over the full financial year.
Borrowing costs (Interest Payable and MRP) for
the year were currently forecast to be £1,089,595 against an
approved budget of £2,268,900, although this could change if
more external borrowing was undertaken than was currently
forecast.
The 2023 to 2024 Annual Treasury Management
and Investment Strategy Statements (report COU/WS/23/002 approved
21 February 2023) set out the Council’s projections for the
current financial year. The annual budget for investment income for
2023 to 2024 is £715,000 which was based on a 3.25 per cent
target average rate of return on investments.
The report also included a summary of
borrowing activity during the period; borrowing strategy and
sources of borrowing; borrowing and capital costs –
affordability; liability benchmark; borrowing and income –
proportionality; borrowing and asset yields and market
information. Attached at Appendix 1 to
the report was the Treasury Management Prudential Indicators and at
Appendix 2 was the Arlingclose Economic
and Interest Rate Forecast as at
September 2023.
The Sub-Committee scrutinised the report in
detail. Members referred to Section 3
of the report (Interest Earned from Treasury Investments during the
period) and the table within paragraph 3.3, which summarised the
interest earned and the average rate of
return achieved at 30 September 2023.
Following on from a query raised with regards to the figures
presented within this table (in relation to CCLA MMF), Officers
stated that they would review the information presented and revise
where necessary.
Members also referred to Section 9 of the
report (Borrowing and Asset Yields) and the table within paragraph
9.3, which showed the income and net return from the current
project portfolio. Again, following on
from a query raised with regards to the figures presented within
this table (in relation to the Solar Farm), Officers stated that
they would review the information presented and revise where
necessary.
RECOMMENDED:
That subject to the
approval of Cabinet and Council, the Treasury Management Report
(September 2023), being Report number FRS/WS/23/004, be approved,
subject to any required revisions being made to the tables within
paragraphs 3.3 and 9.3 (as outlined above).
(Councillor Diane
Hind left the meeting at 11.45am, during the discussion on this
item)