Issue - meetings

To consider the report

To accept the report for information.

The Investment Manager submitted a report in relation to the actual results of the Council's treasury management during 2019/20, compared with the strategy established for that financial year. It was noted that the Council's borrowing activity was within the limits originally set, and £546,000 of interest had been received on investments, which was higher than the £406,000 within the budget. It was confirmed that none of the banks the Council had used for investments had failed to pay.

Attention was drawn to the detail of the borrowing activities, highlighting the fact that long term loans had remained consistent but that the greatest difference was to be seen in the short term loans that had been taken out. It was noted that it would be usual to ask for cash flow towards the end of the year, but with the implications of the Covid-19 pandemic creating uncertainty in terms of how to safely pay out grants to business, the decision was made to take out shout term loans in order to pay the grants. It was reported that £15m had already been repaid, with a further £4m yet to be paid.

It was reported that in terms of investments, this had been a quiet period, with the investment options giving fairly low returns. It was noted that the value of the £10m invested in the property fund in February 2019 had reduced significantly by the end of March 2020, and that this was due to the damaging impact of Covid-19. It was added that the value was low, but that there had been a recovery of around 20% in market values since then. The intention was to continue with the investments for the medium / long term, and to have regular discussions with Arling Close to keep an eye on the portfolio. It was highlighted that the rate for returning empty property into use was 4% and turned over a revenue income of approximately £400k per year; and it was therefore an excellent tool to have in a portfolio.

RESOLVED to accept the information.