Issue - meetings

The Cabinet is asked to consider the agenda report and its appendices and to make the following resolutions:

(1)  That the Cabinet notes the final Prudential Indicators for 2015-2016 to 2020-2021 as detailed in appendix 1 to the report.

(2)  That the Cabinet considers the treasury management out-turn performance for 2015-2016 and the treasury management performance for the three months to 30 June 2016.

RESOLVED

(1)  That the final Prudential Indicators for 2015-2016 to 2020-2021 as detailed in appendix one to the agenda report be noted.

(2)  That (a) the treasury management outturn performance for 2015-2016 and (b) the treasury management performance for the three months to 30 June 201 be noted.

As announced by Mr Dignum at the start of this meeting this item and the immediately preceding one were taken first before agenda item 5 in order to assist the Arlingclose Ltd representative who was present for this item. 

The Cabinet considered the report and its four appendices circulated with the agenda (copies attached to the official minutes). 

The report was presented by Mrs Hardwick. Mr Catlow and Mr D Green (Client Director Arlingclose Ltd) were in attendance.

Mrs Hardwick referred to the treasury management activities and Prudential indicators for 2015-2016 and the first quarter of 2016-2017 viewed against CDC’s treasury management strategy. The Chartered Institute of Public Finance and Accounting’s (CIPFA) Treasury Management Code of Practice and Prudential Code for Capital Finance required CDC to consider those activities and indicators. At its previous meeting the Cabinet had requested an update at this meeting on any significant changes in market conditions which might affect CDC’s Treasury Management Strategy (appendix two). She summarised sections 7 (investment activity and performance), 8 (daily cash management – initial operational problems after the change in bankers in April 2016 had been resolved) and 9 (local context and outlook - interest rates over the medium term and potential investment options in the 2017-2018 treasury management strategy were due to be presented to the Cabinet before the end of 2016). This was the first time that this annual report had been presented in terms of red-amber-green ratings, which was in line with CDC’s overall corporate performance reporting style. There were no red indicators; amber ratings were explained in the report. Appendix one revealed that CDC’s spending plans met the Prudential Code criteria, that CDC was debt-free and able to fund fully its capital investment programme without the need to borrow.

Mr Catlow did not wish to add to Mrs Hardwick’s introduction.

Mr Green provided an oral overview of a Powerpoint presentation which had been e-mailed to the Cabinet members the previous day and was circulated in hard copy to them at the start of this meeting. The focus of his commentary was CDC’s current investment position and Arlingclose Ltd’s view of the post-Brexit financial and economic context (copy attached to the official minutes).

Mr Green replied to a question by Mrs Keegan about the extent of CDC’s scope for making investments. He also said that he welcomed suggestions for subjects to be covered at the CDC treasury management training session for members on 13 January 2017.

Mr Dignum thanked Mr Green for his presentation. 

Decision

The Cabinet voted unanimously by a show of hands in favour of the recommendations in section 3 of the report.

RESOLVED

(1)  That the final Prudential Indicators for 2015-2016 to 2020-2021 as detailed in appendix one to the agenda report be noted.

(2)  That (a) the treasury management outturn performance for 2015-2016 and (b) the treasury management performance for the three months to 30 June 2016 be noted.