Agenda for Financial Resilience Sub-Committee on Monday 18 January 2021, 10.30 am

Agenda and minutes

Venue: Facilitated by MS Teams Virtual Meeting Platform

Contact: Christine Brain: Democratic Services Officer (Scrutiny)  Email: christine.brain@westsuffolk.gov.uk

Items
No. Item

25.

Election of Chair for the Meeting

Minutes:

Due to the Chair, Councillor Ian Houlder being unable to the meeting, the Democratic Services Officer (Scrutiny) opened the meeting and asked for nominations to elect a Chair for the meeting.

 

Councillor Elaine McManus nominated Councillor Robert Nobbs as Chair.  This was duly seconded by Councillor Victor Lukaniuk, and with the vote being unanimous, it was

 

          RESOLVED:

 

That Councillor Robert Nobbs be elected Chair for the meeting held on 18 January 2021.

 

Councillor Robert Nobbs then took the Chair for the remainder of the meeting.

 

 

26.

Substitutes

Any Member who is substituting for another Member should so indicate, together with the name of the relevant absent Member.

Minutes:

The following substitution was declared:

 

Councillor Robert Nobbs substituting for Councillor Ian Houlder.

27.

Apologies for absence

Minutes:

Apologies for absence were received from Councillor Ian Houlder.

28.

Minutes pdf icon PDF 127 KB

To confirm the minutes of the meeting held on 9 November 2020 (copy attached.)

Minutes:

The minutes of the meeting held on 9 November 2020 were confirmed as a correct record by the Chair.

29.

Declarations of interest

Members are reminded of their responsibility to declare any pecuniary or local non pecuniary interest which they have in any item of business on the agenda, no later than when that item is reached and, when appropriate, to leave the meeting prior to discussion and voting on the item.

Minutes:

Members’ declarations of interest are recorded under the item to which the declaration relates.

30.

Financial Resilience Report (December 2020) pdf icon PDF 249 KB

Report number: FRS/WS/21/001

Minutes:

The Sub-Committee received Report number FRS/WS/21/001, which reported on the investment activities of West Suffolk Council from 1 April 2020 to 31 December 2020.

 

The total amount invested at 1 April 2020 was £29,990,000 and at 31 December 2020 it was £38,900,000.

 

The 2020 to 2021 Annual Treasury Management and Investment Strategy Statements approved on 25 February 2020, sets out the Council’s projections for the current financial year.  The budget for investment income for 2020 to 2021 was £142,141, which was based on a 0.65% target average rate of return on investments.

 

As at the end of December 2020, the interest actually earned during the nine months of the financial year amounted to £73,250.00 (average rate of return of 0.352%) against a profiled budget for the period of £106,605 (average rate of return of 0.65%); a budgetary deficit of £33,355.  The deficit related to continued low interest rates as a result of the Covid-19 pandemic which started in mid-March 2020.

 

The report also included a summary of the borrowing and capital costs – affordability; borrowing and income – proportionality; borrowing and asset yields; borrowing and temporary loans and other market considerations.

 

The Sub-Committee scrutinised the investment activity for 1 April 2020 to 31 December 2020, and asked questions to which responses were provided.  In particular, the Sub-Committee discussed negative interest rates; whether the council had start-up plans for any new tenants for industrial/rental units; and what provision was in place for debt collection relating to industrial and retail units.

 

It was then proposed by Councillor Elaine McManus, seconded by Councillor Victor Lukaniuk, and with the vote being unanimous it was:

 

          RECOMMENDED:

 

That subject to the approval of Cabinet and Council, the Financial Resilience Report (December 2020), being Report number FRS/WS/21/001, be approved.

 

31.

Financial Resilience - Strategy Statement 2021 to 2022 and Treasury Management Code of Practice pdf icon PDF 140 KB

Report number: FRS/WS/21/002

Additional documents:

Minutes:

The Chartered Institute of Public Finance and Accountancy’s (CIPFA) Treasury Management Code of Practice required that, prior to the start of the financial year, the Council formally approved a Treasury Management Policy Statement and Investment Strategy setting out the Council’s treasury management policy and strategy for the forthcoming year.

 

The proposed Financial Resilience Strategy Statement 2021 to 2022 was attached as Appendix 1 to Report No: FRS/WS/21/002, along with the Treasury Management Code of Practice at Appendix 2.

 

The report also included additional supporting information on treasury advisors; borrowing strategy; investment strategy counterparty ratings and interest rate projections.

 

The Sub-Committee scrutinised the report in detail and asked a number of questions to which comprehensive responses were provided.  In particular, discussions were held on the municipal bonds agency and internal borrowing.

 

In response to a question raised regarding when were the borrowing limits approved, officers explained the authorised borrowing limits changed each year based on the Councils plans and were included as part of the overall budget report approved by Council in February each year.

 

It was then proposed by Councillor Elaine McManus, seconded by Councillor Victor Lukaniuk and with the vote being unanimous, it was

 

          RECOMMENDED

 

          That:

 

1)       Subject to the approval of Cabinet and Council the Financial Resilience Strategy Statement 2021 to 2022, attached as Appendix 1 to Report number: FRS/WS/21/002, be approved. 

 

2)       Subject to the approval of Cabinet and Council, the Treasury Management Code of Practice, attached as Appendix 2 to Report number: FRS/WS/21/002, be approved.

 

 

 

32.

Dates of future meetings

The next meetings of the sub-committee will be set to meet approximately one week prior to the July 2021, November 2021 and January 2022 meetings of the Performance and Audit Scrutiny Committee.

 

 

 

 

Minutes:

The Sub-Committee noted that the next meetings of the Sub-Committee would be set to meet approximately one week prior to the July 2021, November 2021 and the January 2022 meetings of the Performance and Audit Scrutiny Committee.

 

 

 

 

 

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