Issue - meetings
Treasury Management Annual Report 2017/18
Meeting: 16/07/2018 - Cabinet (Item 14)
14 Treasury Management Annual Report 2017/18 
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Councillor Janette Williamson, Cabinet Member for Finance and Resources, said:
“We have an excellent track record of investing public money to deliver a good return, and using the profits to support the services our residents rely on. I am pleased to bring this report to Cabinet which demonstrates this trend continuing.
An organisation the size of Wirral Council has a highly complex cashflow, with money coming in and out on a daily basis as services are provided and paid for. Our job is to manage those resources well, and make sure we maximise the interest we earn and the returns we can generate from sensible, targeted investments. Our approach has been in line with the practice common to all local authorities to increase inter-authority lending.
The return we get from these investments supports our services and goes towards offsetting the continuing reductions in support from Central Government”. |
Councillor Janette Williamson introduced a report that informed that the Authority’s treasury management activity was underpinned by CIPFA’s Code of Practice on Treasury Management (“the Code”), which required the production of annual Prudential Indicators and a Treasury Management Strategy Statement on likely financing and investment activity. The Code also recommended that Members were informed of treasury management activities at least twice a year. Appendix 1 to the report set out the Prudential Indicators for 2017/18.
The report fulfilled the Authority’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the Ministry of Housing, Communities and Local Government (MHCLG) Investment Guidance.
The Cabinet noted that Proactive Treasury Management activity had resulted in savings of £6.8 million. This was £0.7 million more than the estimated £6.1 million reported in the Treasury mid-year review. The additional savings resulted due to a combination of increased investment income, securing lower cost loans and further Minimum Revenue Provision adjustments. The £6.8 million total saving consisted of:
· £4.6 million as a result of revising the in-year Minimum Revenue Provision (MRP) calculation.
· £2.2 million in year from interest costs not required due to the use of cash flow.
The Cabinet also noted that the level of outstanding long-term borrowing that the Council had with regard to Capital expenditure had continued to fall during 2017/18. The balance of £182 million at 31 March 2018 included £32 million relating to Merseyside Residual Body debt (administered by the Council on behalf of a group of authorities). There had been a reduction of £82 million since 1 April 2012. This reduction had resulted in lower interest costs for the Council.
The Council had complied with the Prudential Indicators as set out in the agreed Treasury Management Strategy for 2017/18.
This matter affected all Wards within the Borough and the decisions in the report were Key Decisions.
The Cabinet noted that there was a legal requirement to produce an Annual Report on Treasury Management activities and no other options were being considered.
Councillor Williamson commended the Treasury Management Team for the way in which it invested ... view the full minutes text for item 14