To receive a report from the Interim Treasury and Investments Manager.

The Chief Finance Officer, PSPS Limited presented Members with the Quarter 1 Treasury Management Update 2023/24, pages 1-26 of the Agenda refer, attached at Appendix A.

Members were informed that the purpose of the report was to provide the Committee with an update on Treasury Management Performance and activity to ensure best practice was maintained.

Key information was highlighted as follows:

·       The Council’s 2023/24 net budget for investment income was £3.071m. At the end of June 2023 investment income earned was estimated to be approximately £1.062m, which was £298k above the profiled budget on a straight-line basis.  This figure is still an estimate as the actual returns on all property funds to June 2023 are not likely to be known until late September 2023, Paragraph 2.4 of the Agenda refers.

·       The average level of funds available for investment purposes during the first quarter of the financial year was £74.3m excluding property fund investments, Paragraph 2.5 of the Agenda refers.

·       Property fund investments were estimated to have achieved an average net rate of 4.14%, Paragraph 2.7 of the Agenda refers.

·       The outturn for investment income for 2023/24 was forecast to be £4.492m which would be £1.421m above budget.  This would be monitored on a monthly basis to reflect changing market conditions, Paragraph 2.9 of the Agenda refers.

·       Further to the Economic Update (Commentary by Link Group), pages 11 to 12 of the Agenda refer, the Monetary Policy Committee had met and the bank interest rate was to remain at 5.25%.

Members were invited to put their comments and questions forward.

A Member referred to a recent training session held for Members that included treasury management and stated that the Council appeared to adopt a safe and prudent approach towards this.  A query was raised whether there was anything on the investment horizon that may be of concern to the Council.  The Chief Finance Officer responded that she was not aware of anything and assured Members that investments were under constant review with the Link Group.  Changes to investments that fell outside of the Council’s approved Treasury Strategy would require Full Council to approve a change in the Strategy.

A Member referred to the General Fund Capital Expenditure 2023/24 Table, page 25 of the Agenda refers.  Particular reference was made to the large increases to the budgets in relation to Disabled Facilities Grants, Environmental Services Vehicle Requirements and Climate Change Projects.  The Chief Finance Officer explained that the increase for the Climate Change Projects was approved after the budget was set, therefore it was a timing matter.  With regards to the other two items highlighted, this would be investigated and reported back to Committee.

The Vice-Chairman highlighted the 3G Football Pitch Project and queried whether it would be possible to get more details on the schemes so Members were better informed.  The Chief Finance Officer explained that the General Fund Capital Expenditure was to identify how the capital programme impacted on the Council’s investments available and was reported as part of the quarterly outturn report presented to Executive Board where there was greater detail.

No further comments or questions were received.

Following which, it was

RESOLVED:

That the Q1 Treasury Management Update 2023/24 report be noted.