Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To update Cabinet on progress with delivering the capital and treasury strategy for 2019/20, as at the end of May 2019.

RESOLVED:

(1)     That the forecast expenditure of £7.822million in 2019/20 on the capital programme, paragraph 8.2 refers be noted.

(2)     That the adjustments to the capital programme for 2019/20 onwards as a result of the revised timetable of schemes detailed in table 2, increasing the estimated spend in 2020/21 by £1.408million be approved;

(3)     That the position of the availability of capital resources, as detailed in table 3 paragraph 8.6 and the requirement to keep the capital programme under review for affordability be noted;

(4)     That the position of Treasury Management activity as at the end of May 2019be noted.

REASON FOR DECISIONS:

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

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 – 27 minutes 52 seconds

The Executive Member for Finance and IT presented the report entitled First Quarter Investment Strategy (Capital and Treasury) 2019/20 together with the following appendices:

·            Appendix A - Capital Assets as at 31 March 2019;

·            Appendix B - Capital Programme Detail including Funding 2018/19 onwards;

·            Appendix C - Treasury Management Update.

The following alternative options were considered:

(1)   Options for capital investment were considered as part of the Corporate Business Planning process.

(2)   The primary principles governing the Council’s investment criteria were the security of its investments (ensuring that it gets the capital invested back) and liquidity of investments (being able to get the funds back when needed). After this the return (or yield) would then be considered, which provided an income source for the Council.  In relation to this, the Council could then take a different view on its appetite for risk, which would be reflected in the Investment Strategy. In general, greater returns could be achieved by taking on greater risk.  Once the Strategy had been set for the year, there was limited scope for alternative options as Officers.

The Chairman of the Finance, Audit and Risk Committee presented the referral from the meeting held on 29 July which contained the following recommendation to Cabinet:

(1)    That Cabinet noted the forecast expenditure of £7.822million in 2019/20 on the capital programme, paragraph 8.2 refers;

(2)    That Cabinet approved the adjustments to the capital programme for 2019/20 onwards as a result of the revised timetable of schemes detailed in table 2, increasing the estimated spend in 2020/21 by £1.408million;

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

(4)    Cabinet was asked to note the position of Treasury Management activity as at the end of May 2019.

It was proposed by Councillor Ian Albert, seconded by Councillor Martin Stears-Handscomb and:

RESOLVED:

(1)     That the forecast expenditure of £7.822million in 2019/20 on the capital programme, paragraph 8.2 refers be noted.

(2)     That the adjustments to the capital programme for 2019/20 onwards as a result of the revised timetable of schemes detailed in table 2, increasing the estimated spend in 2020/21 by £1.408million be approved;

(3)     That the position of the availability of capital resources, as detailed in table 3 paragraph 8.6 and the requirement to keep the capital programme under review for affordability be noted;

(4)     That the position of Treasury Management activity as at the end of May 2019 be noted.

REASON FOR DECISIONS:

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

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.