Decision details

The Executive Councillor is recommended to receive this statutory report for submission to Council in accordance with Financial Regulations under the constitution.

Matter for Decision: The Council is required through regulations issued under the Local Government Act 2003 to produce an annual treasury report reviewing treasury management activities and the actual prudential and treasury indicators for 2011/12. The report meets the requirements of both the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code 2011).

Decision of the Leader:

The Leader resolved to:

       i.            Recommend the report, which included reporting of the Council’s actual Prudential and Treasury Indicators for 2011/12, for approval by Council.

 Reasons for the Decision: As set out in the officer’s report

Any alternative options considered and rejected: As set out in the officer’s report

Scrutiny Considerations

The committee received a report from the Head of Accounting Services.

In response to member’s questions the Head of Accounting Services confirmed the following:

        i.            The Council’s Treasury Management advisors, Sector, provided information on the national and world economy as included in section 3.7 of the report. It was agreed that Councillor Pogonowski’s comments regarding the need for the wording to be politically neutral would be fed back to Sector.

      ii.            The phrase ‘dividends’ was used as a legal term.

    iii.            It was now expected that the City Council would receive 100% of the funds from Lansbanki (updated from 95%) and up to 90% from Heritable. Both would also include an element of interest.

   iv.            The Council had undertaken only short term lending in the latter part of the year pending a decision regarding the funding of the Housing Revenue Account Self-Financing payment. 

     v.            The Council was currently restricting deposits with non-nationalised banks and building societies to a maximum of three months.

   vi.            The Medium Term Strategy would explore different options for depositing the Councils money.

The Scrutiny Committee considered and approved the recommendations by 4 votes to 0.

The Leader approved the recommendations.