It was reported to Cabinet that Council held £47.497m in investment at mid year, up from £40.882m at 31st March 2018. Investment yield was 0.6% against a 7 day LIBID benchmark of 0.44%. The return on investment was budgeted at £62000 and this was well above budget at £136,000 by mid year. Original estimate for the Capital Financing Requirement (CFR) was £57.171m. At mid year it was held at £30.771m by utilising £25.4m of cash flow funds.
There was no Debt rescheduling for the period under review due to the prevailing interest rate structure. The Debt interest budget was set at £1.507m but had since been revised to an estimated £1.206m by year end.
The ratio of financing costs to revenue stream was down on both the Non HRA and HRA budgets. Non HRA was down from 10.5% of revenue stream to 8.6% and HRA down from 7.6% of revenue stream to 6.00%. In summary the mid year report showed good performance in all areas.
Councillor Gregory proposed, Councillor Savage seconded and Members:
1) Approved the Cabinet report and the prudential and treasury indicators that are shown;
2) Recommended this report to Council.
Mr Willis Deputy Chief Executive and Section 151 Officer introduced the report which summarised the treasury management activity and prudential/treasury indicators for the first half of the 2018/19.
During consideration of the item it was noted that:
· The capital expenditure estimate had been revised from £9.2million to £20.9million due to the funding of programmes that had slipped from 2017/18 in to the 2018/19 year.
· There was a lot of economic uncertainty which made future predictions of the financial markets, and their impact upon on the capital programme difficult.
· The Council was looking at the options in response to the demand for housing within the District.
Councillor Campbell proposed, Councillor Larkins seconded and Members agreed the recommendation as shown in the report, namely:
‘That the Governance and Audit Committee:
· Approves this report and the prudential and treasury indicators that are shown.
· Recommends this report to Cabinet.’