Issue - meetings

Report of the Director of Finance and Support

2.1 Cabinet recommended to Council that they note the Council’s Treasury Management Performance in 2008-09.

2.2 That Cabinet noted the following changes to 2009-10 counterparty limits, authorised by the Chief Finance Officer (the Section 151 Officer), on 12 June 2009:

·        An increase in the maximum level of investment with any counterparty, or group of counterparties from £10m to £15m.

That under the additional restrictions to counterparty criteria and limits in place for 2009-10 set out in the Treasury Strategy, the increased limit should apply only to the maximum amounts permitted for investments with the UK Debt Management Office and with the UK nationalised/part nationalised banking groups included on the Sector list (Lloyds Banking Group, Royal Bank of Scotland Group and Northern Rock).

Councillor Perkins as the relevant Portfolio Holder submitted a report that set out the Council’s performance in relation to its borrowing and investment strategy for 2008-9 and advised of an increase for 2009/10 to the maximum amount permitted for investments within the UK Debt Management Office and with the UK nationalised/part nationalised banking groups.  Councillor Perkins further commented that the report demonstrated that the Council was now on a firm financial footing which was all the more welcome because of the unprecedented situation that the Council found itself in over the last 18 months.  He noted that borrowing had been kept down to £26m although Council could borrow up to £43m.  He commented that the Council’s position compared favourably with a number of other Councils.  Councillor Perkins also commented on the reduction in investment rates from 5.5% to 0.5%.

RECOMMENDATION:      That Council note the Council’s Treasury Management Performance in 2008-9.

RESOLVED:         (1)         That the following changes to the 2009/10 counter party limits authorised by the Chief Finance Officer (the Section 151 Officer) on 12 June 2009 be noted:

·  An increase in the maximum level of investment with any county or party or group of counter parties from £10m to £15m

·  That under the additional restrictions to counter party criteria and limits in place for 2009/10 set out in the Treasury Strategy increased limits should apply and lead to a maximum amount permitted for investments with the UK Debt Management Office and with the UK nationalised/part nationalised banking groups including on the sector list (Lloyds Banking group, Royal Bank of Scotland group and Northern Rock)

(2)         That the Director of Finance and Support and her colleagues be congratulated upon the Council’s Treasury Management and Performance in 2008-9.