Issue - meetings
2015/16 Mid–Year Treasury Report
Meeting: 16/09/2015 - Audit Committee (Item 10)
10 2015/16 Mid–Year Treasury Report PDF 173 KB
This report updates Members on recent treasury
activity.
Minutes:
The Committee decided to take together the 2015/16 mid-year treasury report and the 2014/15 treasury management outturn report. The Chief Finance Officer informed members that the 2015/16 mid-year treasury report updated members on the Council’s recent treasury activity including the management of its investment, cash flows and the effective control of the risks associated with those activities. Members heard that the Council’s use of internal resources in lieu of borrowing had continued to be the most cost effective means of funding capital expenditure and by reducing both external debt and temporary investments, had lowered overall treasury risk. He advised the Committee that borrowing options and the timing would continue to be assessed in conjunction with the Council’s treasury advisor, Arlingclose.
Conrad Hall updated members that the Council received £0.4m in August 2015 regarding the Icelandic Bank Investment, which meant that only £0.2m of the original £10m deposit was outstanding. It was expected that a further distribution would be made but this depends on the result of litigation currently under way regarding a property investment.
In respect of the report on 2014/15 treasury management outturn, Conrad Hall informed the Committee that no debt was restructured during the year and that no lenders exercised options to vary the terms of loans on LOBO (Lender Option, Borrower Option) terms. Members were advised that the Council had borrowed £95.5m under LOBO transactions, all of which were entered into in the period November 2002 to April 2010 and that to re-negotiate these arrangements currently would be very expensive.
RESOLVED:
that the 2015/16 mid-year Treasury report which is also to be submitted to the Council and Cabinet be noted.