Issue - meetings

The report of the Executive Manager – Finance and Corporate Services.

The Service Manager – Finance provided a report which summarised the capital and investment activities of the Council for the period 1 April to 30 September 2018. The Capital and Investment strategy for 2018/19 was approved by council on 1 March 2018 and outlines the Council’s capital and investment priorities as follows;

·       Security of capital

·       Liquidity of investments and

·       Optimising yield earned on investments (cash and property)

The Service Manager – Finance added that the strategy includes indicators which help ensure the Council’s capital investment plans are affordable, prudent and sustainable and that setting a Capital and Investment strategy is a requirement of the CIPFA Code of Practise.

The Service Manager – Finance informed the Group of the Council’s investment income advising them that a combination of base rate forecasts, constraints on the lending list and the expenditure expected to be incurred on the Capital Programme meant that the Council had budgeted to receive £270,500 in investment income for 2018/19. However the actual interest earned to 30 September 2018 totalled £137.300, with receipts for the year expected to be £315,500. She advised interest receipts were higher than expected due to higher interest rates and delays in the Capital Programme. The Service Manger – Finance added that going forward this could change, for example if interest rates alter, or there is an unexpected property investment or if there are economic growth consequences of BREXIT which remain speculative.

The Service Manager – Finance provided detailed information in appendices to demonstrate the Council’s spread of investments across the financial sector.

Members asked specific questions relating to the risk of institutions the Council were investing in and whether these were set out in the Treasury Management Strategy. Members also requested if they could be provided with the list of investments as a *AAA rating score as extra information for Members to consider.

The Executive Manager – Finance and Corporate Services provided additional information in respect of the Council’s Commercial Investments advising that there had been a reduction in Commercial Investment activity since July 2018, highlighting that the Council had other potential capital demands, in the Crematorium and Bingham Leisure Centre.

It was RESOLVED that the Group note the Capital Investment position as at 30 September 2018.