This performance monitoring report on the Treasury Management Strategy:  Annual Report and Performance 2015/16 is submitted twice a year:

·         Dec 2015– the position at the 30 September 2015 (Half Year)

·         Sept 2016 – the position at 31 March 2016 (Full Year)

The Head of Financial Services submitted a report which set out the Council’s treasury management activity and performance for the financial year 2015/2016. The report also identifies some reductions in interest rates in 2016/17 and recommends a change to the Treasury Strategy for 2016/17.

Cllr Turner, Board Member for Finance, Asset Management and Public Health presented the report. He said that the Council had done well on the property funds but as a result of Brexit, capital values had reduced but were still significantly above the Council’s purchase price. He was cautious about over-exposing the Council to risk in the property market.

The Head of Financial Services said that a 0.10% base rate was expected.  In terms of internally borrowing, it was better for council to borrow internally as you only forfeit the interest from saving the money in the bank (which is very low at the moment) rather than paying a higher interest rate through external borrowing.

The City Executive Board resolves to:

1.    Note the report

2.    Recommend that Council approve the amendment to the Specified Investments list attached at Appendix 1 (paragraphs 35 – 37 below)