Agenda item

(Copy herewith)

The Finance Manager presented the draft Treasury Management Strategy Report 2013-14 to 2015-16 for the Committee to consider and comment on.  The Strategy would be reported to Cabinet on 20 February 2013 and then to Council on 25 February 2013 for approval.  A copy of the draft report to Cabinet and accompanying appendices were attached to the report for the Committee’s consideration.  It was noted that a number of items in the report would or might need to be updated prior to the report being considered by Cabinet due to the interval between the Committee and Cabinet meetings, the interface between the content of the report and the Council’s other budget setting reports and developments relating to LGSS which might impact on the report.

A Member asked if the risk elements in the strategy could be labelled through the RAG “traffic light” system but it was noted that the risks related to the future performance of financial institutions and the European economy and these were very difficult to predict.  A “traffic light” system would not therefore be appropriate.

It was noted that this strategy, when agreed, would be used by LGSS for the treasury management function they would undertake on behalf of the Council.  The strategy would indicate Key Performance Indicators, set by the Director of Resources, which LGSS would be required to meet.  LGSS would be paid a fee for the services provided and the income generated would accrue to the Council.  The fee for the LGSS treasury management service was included in the fee LGSS would be paid for the provision of financial services and could not be disaggregated but was based on the business case put together by the Council’s officers.

The Committee congratulated the officers on their performance during the current year and expressed the hope that investment income could be sustained or increased in 2013/14.

RESOLVED:

That the report be noted.