Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To receive an update on progress with delivering the capital and treasury strategy for 2022/23, as at the end of December 2022.

RECOMMENDED TO CABINET:

1.    That Cabinet notes the forecast expenditure of £8.370M in 2022/23 on the capital programme, paragraph 8.3 refers.

2.    That Cabinet approves the adjustments to the capital programme for 2022/23 onwards, as a result of the revised timetable of schemes detailed in table 2 and 3, increasing the estimated spend in 2023/24 by £1.554M.

3.    That Cabinet notes the position of the availability of capital resources, as detailed in table 4 paragraph 8.6 and the requirement to keep the capital programme under review for affordability.

4.    Cabinet is asked to note the position of Treasury Management activity as at the end of December 2022.

REASONS FOR DECISIONS:

1.    Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded.

2.    To ensure the Council’s continued compliance with CIPFA’s code of practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk.

Audio recording – 71 minutes 36 seconds

The Service Director – Resources presented the report entitled Third Quarter 2022/23 Investment Strategy (Capital and Treasury) and advised:

·         This report was a combination of the capital position and Treasury position for the year.

·         Capital position was covered in the first half of Section 8 and Table 2.

·         Table 3 covered the use of Section 106 money and that the capital allocation for the North Hertfordshire Museum platform lift was no longer required.

·         In relation to Treasury position, more interest was being generated on treasury investments.

·         In terms of splits in investments, there was a high proportion of the Council’s money with government.

·         The DMO were paying good interest returns in general and provide flexibility over investment periods.

·         As there was an unlimited capacity to invest in government under the Treasury Strategy, the DMO would continue to be used.

·         The Council were looking to maintain a spread of investments.

·         Towards the end of the year, the Council were looking to make sure there were a spread of maturity dates and investments as interest rates would start to move down again.

·         The table in Section 8.13 detailed all Investments at the end of the Third Quarter and the returns.

In response to the question from Councillor Sean Nolan, the Service Director – Resources advised that it was common for local authorities to borrow and invest money from each other. As they were paying reasonable rates, it was likely that there would be more local authorities that the Council would lend to in the next quarter.

Councillor Terry Tyler proposed, Councillor Sean Nolan seconded and after a vote, it was:

RECOMMENDED TO CABINET:

(1)  That Cabinet notes the forecast expenditure of £8.370M in 2022/23 on the capital programme, paragraph 8.3 refers.

(2)  That Cabinet approves the adjustments to the capital programme for 2022/23 onwards, as a result of the revised timetable of schemes detailed in table 2 and 3, increasing the estimated spend in 2023/24 by £1.554M.

(3)  That Cabinet notes the position of the availability of capital resources, as detailed in table 4 paragraph 8.6 and the requirement to keep the capital programme under review for affordability.

(4)  Cabinet is asked to note the position of Treasury Management activity as at the end of December 2022.

REASONS FOR DECISIONS:

(1)  Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded.

(2)  To ensure the Council’s continued compliance with CIPFA’s code of practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk.