The Treasury Management Annual Report 2018/19 was presented by Councillor Andrew Jarvis, Finance and Resources Portfolio Holder. The report reviewed the treasury activities and the actual prudential and treasury indicators for the 2018/19 financial year, meeting the requirement of the Local Government Act 2003, the CIPFA Code of Practice on Treasury Management and the CIPFA Code for Capital Finance in Local Authorities.
The level of external debt had not changed during the year, with borrowing remaining well below the Capital Financing Requirement. Current debt stood at £12.8m. Although at year end, the Council had cash and investments of £20.3m, further repayment of debt was not recommended given that current repayment premium would be circa 93%. The Portfolio Holder highlighted the fact that the Council’s strong cash position was used to keep borrowing down and that it was currently £5.6m under-borrowed. He drew attention to the significant fluctuations in the Council’s cash flow which emphasised the need for dynamic management of the portfolio, ensuring that cash that was temporarily surplus to requirements was invested for the benefit of South Lakeland. He also informed Members that the Council’s cash investments had out-performed benchmark rates, generating £223,000 of income to support the core services of the Council.
The report had been considered by the Overview and Scrutiny Committee at its meeting on 12 July 2019 and by Cabinet on 17 July 2019.
Councillor Jarvis moved the recommendation in the report, thanking officers for their work, and was seconded by Councillor Matt Severn who commended the Council’s safe lending pattern.
In response to a query, Councillor Jarvis agreed for the need to maintain liquidity.
RESOLVED – That the 2018/19 Treasury Management Report be approved.