Agenda item

INVESTMENT STRATEGY (CAPITAL AND TREASURY) END OF YEAR REVIEW 2020/21

REPORT OF THE SERVICE DIRECTOR – RESOURCES


To consider the Investment Strategy (Capital and Treasury) End of Year Outturn Review 2020/21.

Decision:

RESOLVED:

 

(1)       That the expenditure of £1.883million in 2020/21 on the capital programme, paragraph 8.3 refers, and in particular the changes detailed in table 3 which resulted in a net increase on the working estimate of £0.001million, be noted;

 

(2)       That the adjustments to the capital programme for 2020/21 as a result of the revised timetable of schemes detailed in table 2, increasing the estimated spend in 2021/22 by £0.522million (£0.527milion re-profiled from 2020/21 and £0.005million from 2021/22 re-profiled into 2020/21), be approved.

 

(3)       That the position of the availability of capital resources, as detailed in table 4 paragraph 8.8 and the requirement to keep the capital programme under review for affordability, be noted.

 

(4)       That the application of £1.224million of capital receipts towards the 2020/21 capital programme and the drawdown of £0.417million from set aside receipts, paragraph 8.8 refers, be approved;

 

(5)       That the position of Treasury Management activity as at the end of March 2021, be noted.

 

(6)       That the report entitled Investment Strategy (Capital and Treasury) End of Year Review 2020/21 be recommended to Council.

 

RECOMMENDED TO COUNCIL:

 

(1)       That the actual 2020/21 prudential and treasury indicators be approved;

 

(2)       That the annual Treasury Report for 2020/21 be noted.

 

REASONS FOR DECISIONS:

 

(1)       Members are able to monitor, make adjustments within the overall budgetary framework and request appropriate action of Services who do not meet the budget targets set as part of the Corporate Business Planning process.

 

(2)       Changes to the Council’s balances are monitored and approved.

Minutes:

Audio Recording – 44 Minutes

 

The Service Director – Resources presented the referral from the Finance, Audit and Risk Committee held on 23 June 2021. The Service Director advised Cabinet that the FAR Committee had had a good discussion and were happy to forward the report to Cabinet.

 

The Executive Member for Finance and IT, Councillor Ian Albert, then presented the report entitled Investment Strategy (Capital And Treasury) End of Year Review 2020/21, including:

 

·                The position on capital was summarised by the table on page 120. The intention at this time last year was that the Council would spend £13.4m this year.

·                The outturn position was that the Council had spent under £2m;

·                The lower than forecast spend meant that the Council had funded all their capital spend from contributions and capital reserves;

·                Over £700k had been added to capital reserves during the year from finalising sales on surplus land and buildings;

·                The position on treasury was summarised in paragraphs 8.11 through to 8.20, with more detail in Appendix B. The rates of return had been drastically impacted by Covid-19 with the average rate on new deals just 0.17%. There was little prospect that these rates would increase back up very quickly.

·                As detailed in paragraph 8.20, the Council were progressing with new long-term investments in a property fund and multi-asset fund. These would help diversify our portfolio of investments, and it was hoped to provide a yield in line with the longer term investment risk being taken. This was being supported by the Council’s treasury advisers.

 

Upon being put to the vote, it was:

 

RESOLVED:

 

(1)       That the expenditure of £1.883million in 2020/21 on the capital programme, paragraph 8.3 refers, and in particular the changes detailed in table 3 which resulted in a net increase on the working estimate of £0.001million, be noted;

 

(2)       That the adjustments to the capital programme for 2020/21 as a result of the revised timetable of schemes detailed in table 2, increasing the estimated spend in 2021/22 by £0.522million (£0.527milion re-profiled from 2020/21 and £0.005million from 2021/22 re-profiled into 2020/21), be approved.

 

(3)       That the position of the availability of capital resources, as detailed in table 4 paragraph 8.8 and the requirement to keep the capital programme under review for affordability, be noted.

 

(4)       That the application of £1.224million of capital receipts towards the 2020/21 capital programme and the drawdown of £0.417million from set aside receipts, paragraph 8.8 refers, be approved;

 

(5)       That the position of Treasury Management activity as at the end of March 2021, be noted.

 

(6)       That the report entitled Investment Strategy (Capital and Treasury) End of Year Review 2020/21 be recommended to Council.

 

RECOMMENDED TO COUNCIL:

 

(1)       That the actual 2020/21 prudential and treasury indicators be approved;

 

(2)       That the annual Treasury Report for 2020/21 be noted.

 

REASONS FOR DECISIONS:

 

(1)       Members are able to monitor, make adjustments within the overall budgetary framework and request appropriate action of Services who do not meet the budget targets set as part of the Corporate Business Planning process.

 

(2)       Changes to the Council’s balances are monitored and approved.

Supporting documents: