The Financial Services Manager presented the report of the Executive Manager – Finance and Corporate Services which summarised the transactions undertaken during the 2018/19 financial year as part of the Capital and Investment Management Function and also provided information on the Council’s commercial investment activity. It was noted that the Council’s commercial investment activity as detailed in the report embraced the new CIPFA code which ensured that there was both transparency and scrutiny in terms of both treasury and asset investment decision making.

The Financial Services Manager highlighted details from the report which included that the Council had an underspend of £18 million of which some £13 million had been carried forward to 2019/20.

The Executive Manager – Transformation noted key points of the Council’s commercial investment strategy. It was explained that the Asset Investment Group agreed to proceed with two new asset acquisitions and investments which were Co Op, Trent Boulevard and Boundary Court, Castle Donington. It was also noted that there was currently £4.761m remained outstanding from the £20 million allocation for the asset investment strategy and would be carried forward into 2019/20.

Mr Hoose commented that the Council were managing low risk investments inside the Borough effectively.

Councillors queried the current interest rates of counterparties that the Council had placed investments with at the end of 2018/19. The Financial Services Manager agreed to check the interest rates and report the figures back to the Group. The Executive Manager – Finance and Corporate Services also explained that borrowing to invest needed to be justified and that the Council would have to be transparent if it were to invest outside of the Borough. The Executive Manager also noted that the Council did not want to rely too heavily on investment income and that the Council’s largest areas of income generation were council tax and business rates. It was noted that £13.118m of the overall capital programme would carry forward in which £4.761m would be allocated to the Asset Investment Strategy, £2.285m for the redevelopment of the Depot site, £1.646m for continued improvement works in Cotgrave Town Centre and £1.146m to continue support for affordable housing within the Borough. 

It was RESOLVED that the report of the Executive Manager – Finance and Corporate Services be noted.