Issue - meetings

[To approve matters relating to the year-end position with regard to treasury management arrangements and activity; and to receive an update on treasury management activity in 2016/17]

Cllr Andrew Johnson presented the report which set out the results of treasury management activities carried out in 2015/16, together with performance against the Prudential Indicators previously approved by Council.  The report also provided monitoring and progress information on treasury management activity for the first quarter of 2016/17, in line with the Prudential Indicators approved by Council in March 2016.

Resolved:

1.     That Council be recommended to approve the amendment to paragraph 1.4 of the Annual Investment Strategy by lowering the minimum sovereign rating from AA+ to AA with regard to the Council’s investment lending list.

2.  That Council be recommended to note:

a.       That the Council operated within the approved Prudential and Treasury Management Indicators, and also within the requirements set out in the Council's approved Treasury Management Policy Statement during 2015/16.

b.       That revenue savings of £7.6 million for the General Fund (including a special dividend from Birmingham Airport of £3.6 million) and £1.5 million for the Housing Revenue Account were generated from treasury management activities in 2015/16.

c.       Revenue savings of £886,000 for the General Fund and £254,000 for the Housing Revenue Account are forecast from treasury management activities in 2016/17.

d.       The capital programme figures included in the report assumes that the updated requests for capital resources being reported to Cabinet (Resources) Panel on 19 July 2016 and Council on 20 July 2016 are approved.  If this were not to be the case revised figures would be provided to Full Council on 21 September 2016.

3       That it be noted that it is proposed that a total of £1.5 million of the treasury underspend in 2015/16 will be transferred into the Treasury Management Equalisation Reserve, this is subject to approval by Cabinet in the Reserves, Provisions and Balances 2015/16 report also being considered at this meeting.