The Sub-Committee received Report No:
FRS/WS/20/001, which reported on the investment activities of West
Suffolk Council from 1 April 2019 to 31 March 2020.
The 2019-2020 Annual Treasury Management and
Investment Strategy Statements, approved on 19 February 2019, set
out the Council’s projections for the current financial
year. The budget for investment income
in 2019-2020 was £142,141, which was based on a 0.90% target
average rate of return on investments.
At the end of March 2020, interest actually
earned during the financial year totalled £389,892 (average
rate of return of 0.828%), against a budget for the year of
£142,141; a budgetary surplus of £247,751.
The Annual Financial Resilience
Report (2019-2020) included tables summarising the interest
earned and the average rate of return achieved during 2019-2020;
investment activity during the year; investments held as at 31
March 2020; and capital borrowing budget 2019-2020.
The report included assumptions
on borrowing for the capital projects included within it and was
based around three main projects:
-
West Suffolk Operational Hub;
-
Mildenhall Hub; and
-
Investing in our Growth Fund.
The report referred to the
long-standing £4m loan relating to the Newmarket Leisure
Centre and £2.29m of internal borrowing relating to the
purchase of the Toggam Solar Farm.
The report also included a summary of the
capital borrowing budget for 2019-2020; borrowing and income
– proportionality; borrowing and asset yields; borrowing and
temporary loans and other market considerations.
The Sub-Committee scrutinised the Annual
Financial Resilience Report 2019-2020, and asked questions to which
responses were provided.
In response to a question raised about any
future borrowing, the Sub-Committee was advised that there would
come a time when the Council would need to borrow externally, and
this was set out in the Council’s West Suffolk Capital
Strategy.
In response to a questioned raised relating to
Toggam Solar Farm, and its currently value, officers advised that
the Solar Farm had recently been revalued by an external company
and the new valuation was currently been valued by the Councils
External Auditors, Ernst and Young.
The Sub-Committee congratulated the Council on
the record earnings achieved in May 2020 at the Toggam Solar Farm
due the exceptionally sunny weather the country had.
It was proposed by Councillor Elaine McManus,
seconded by Councillor Victor Lukaniuk, and with the vote being
unanimous, it was
RECOMMENDED:
That the Annual
Financial Resilience Report 2019-2020, being Report No:
FRS/WS/20/001, be approved.