Issue - meetings

Matter for Decision: The Council is required by regulations issued under the Local Government Act 2003, to produce a half yearly strategy treasury report reviewing treasury management activities.

 

Decision of the Executive Councillor for Finance and Resources 

 

The Executive Councillor resolved to:

 

i.       Recommend to Council amendments to the Counterparty list, which highlight changes in Capita’s (Council’s Treasury Adviser) credit criteria, within Appendix B of the officer’s report. These are summarised below:-

 

-        Name ‘smaller’ building societies with an asset value greater than £5billion; and;

 

-        Show the limits for ‘smaller’ building societies meeting these criteria.

 

ii.     Recommend to Council to add equity investment in the Local Capital Finance Company, the legal entity of the UK Municipal Bonds Agency, to non-specified investments within the Council’s investment strategy.

 

iii.   Recommend to Council changes to the estimated Prudential & Treasury Indicators for 2014/15 to 2017/18, inclusive, as set out in Appendix G of the officer’s report.

 

iv.   Recommend to Council:-

 

-        approval of a capital investment of up to £50,000 in the equity share capital of the Local Capital Finance Company; and;

 

-        delegation of the final decision on investment to the Head of Finance in consultation with the Executive Councillor for Finance and Resources

 

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 Finance.

 

In response to member’s questions the Head of Finance and the Director of Customer and Community Services said the following:

 

i.                 The current HRA treasury strategy is to set aside 25% of the value of the loan portfolio by the point at which the first of 20 loans reaches maturity. This will allow the authority to decide whether to redeem a proportion of the loans, or instead to refinance then, dependent upon its prevailing rates of interest at this time.

ii.               The City Council would have limited liability on any Municipal Bonds issued. These would be added to the counterparty list when approved.

iii.             Agreed to circulate the definition used for cash durations applicable to Appendix C of the officer’s report.

 

Councillor Catherine Smart proposed the following minor amendment to recommendation 2.4 of the officer’s report (amendment underlined):

 

-        delegation of the final decision on investment to the Head of Finance in consultation with the Executive Councillor for Finance and Resources.

 

On a show of hands this was agreed unanimously.

 

The Scrutiny Committee considered the amended recommendations and endorsed them unanimously.

 

The Executive Councillor approved the amended recommendations.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted):

 

Not applicable.