Issue - meetings

The Finance Manager presented the Treasury Outturn Statement to outline treasury performance during the financial year for 2019/20. It was pointed out that this was an unusual year because of the preparations for Brexit, the impact of and uncertainties due to COVID 19.  Following presentation of the report, questions from Committee Members were invited.

A Member referred to the amount of borrowing that may be needed due to delays in reimbursement for COVID 19 related expenditure from Welsh Government.  It was explained that at 31^st March 2020, there was significant expenditure because of delays in funding which required us to take out short term borrowing and the interest has been claimed from the hardship fund.

In response to a question, it was acknowledged that Public Works Loan Board (PWLB) interest is at historically high rates.  It was confirmed that that £10m medium term loans were taken out before the rise in rates.  This has provided a level of stability to the investment portfolio.  As an alternative, the council borrows significant amounts from other authorities and bodies at lower rates.

It was confirmed that the Lender Option Borrower Option (LOBO) loans were market loans taken out in 2001 with 40 year maturity when rates were slightly higher.  We continue to pay interest at an average rate of 4.8% on these loans.  It was also confirmed that the £2.58m referred to in paras 10.5 was the combination of the items listed in 10.3 and 10.4.

In response to a comment, it was noted that the need for training for Audit Committee Members is referred to in the action plan arising from the self-assessment activity. 

As recommended, Members noted the results of treasury management activities and the performance achieved in 2019/20 as part of their delegated responsibility to provide scrutiny of treasury policy, strategy and activity on behalf of the Council.