Issue - meetings

The Senior Accountant and Finance Manager presented the Treasury Policy and Strategy Report.  Questions were asked by Committee Members as follows:

·         Referring to para 4.1, a Member was impressed that the example of income return on investments to date is above 4%.   It was explained that this was in relation to a small amount invested in strategic pooled funds where interest is fixed for three to five years; the funds have therefore returned as expected.

·         A Member reminded the Committee that there is £20m left (of £50m) for the Investment Committee and there is the likelihood of more borrowing.  It was confirmed that the capital financing requirement figures in the Medium Term Financial Plan includes £20m borrowing.  It was commented that a similar investment strategy is being followed by other councils.

·         The term “not financed” in Table 1 was clarified as meaning the loan is not being paid for from the revenue budget.

·         A Committee Member referred to loans that are amortising up to 2065 and queried if the authority’s income stream would increase over time, and if more borrowing would be required for expenditure.  It was explained that the graph referred to circumstances where no further borrowing is taken out.  Loans would be replaced as they mature and the revenue budget will bear the cost over the specified time for repayment. Borrowing capacity would stay constant over the next few years (to meet the red line on the graph).  Further explanation was provided on short and long terms borrowing already in the Medium Term Financial Plan noting that historically there were more long term loans than over the last 6-7 years.

·         Referring to Annex D, the Committee was reassured that there are no loans agreed on a verbal basis.

The Committee acted on the recommendations as follows:

That Audit Committee considers and endorses for onward circulation and approval by full Council.

·         The proposed Treasury Management and Minimum Revenue Provision Policy Statement for 2020/21 (Appendix 1) and

·         The proposed Treasury Management Strategy 2020/21 (Appendix 2) including the Investment & Borrowing Strategies.