Issue - meetings

The Assembly received this report introduced by Councillor Twomey, the Cabinet Member for Finance, which provided details of the mid-year position for treasury activities and highlighted compliance with the Council’s policies previously approved by the Assembly.

In response to Members’ questions, the Chief Finance Officer advised that:

·  LOBO (lend option/borrow option) were structured loans whereby the Council borrowed at a certain rate.  The bank had an option to change that rate, following which the Council would have an option of repaying the loan without penalty;

·  The Council’s exposure was £40m with four commercial banks, which were considered to be good value loans at the time they had been taken out.

The Assembly agreed to:

(i)  Note the Treasury Management Strategy Statement Mid-Year Review 2014/15;

(ii)  Note that in the first half of the 2014/15 financial year the Council complied with all 2014/15 treasury management indicators;

(iii)  Note the borrowing of £89m through a loan facility from the European Investment Bank (EIB) to support an urban regeneration and economic growth programme agreed by the Assembly on 17 September 2014; and

(iv)  Delegate authority to the Chief Finance Officer, in consultation with the Cabinet Member for Finance, to proportionally amend the counterparty lending limits agreed within the Treasury Management Strategy Statement for the duration of the 2014/15 financial year, subject to a review of this authority in the February 2015 Treasury Management Strategy report to take into account of any potential additional borrowing from the EIB which has been agreed previously by Cabinet.

The Cabinet Member for Finance presented an update report on the treasury management activities during the current financial year and highlighted the following two main points:

·  Counterparty Lending Limits – the Assembly would be asked to review the position when it considers the 2015/16 Treasury Management Strategy in February 2015.

·  Interest Rates – the current investment approach may be reviewed to enable the Council to benefit from higher interest rates available in the market.

Cabinet resolved to recommend the Assembly to:

(i)  Note the Treasury Management Strategy Statement Mid-Year Review 2014/15;

(ii)  Note that in the first half of the current financial year the Council complied with all 2014/15 treasury management indicators;

(iii)  Note the borrowing of £89m through a loan facility from the European Investment Bank (EIB) to support an urban regeneration and economic growth programme agreed by the Assembly on 17 September 2014; and

(iv)  Delegate authority to the Chief Finance Officer, in consultation with the Cabinet Member for Finance, to proportionally amend the counterparty lending limits agreed within the Treasury Management Strategy Statement for the duration of the 2014/15 financial year, subject to a review of this authority in the February 2015 Treasury Management Strategy report to take into account any potential additional borrowing from the EIB agreed previously by the Cabinet.