Issue - meetings

(A report by Christine Marshall, Deputy Chief Executive – Corporate Development & S151)

The Chairman announced that the Q1 Treasury Report 2024/25 would be dealt with as the first Agenda Item.  

The Interim Treasury & Investments Manager, PSPSL presented a report by the Deputy Chief Executive – Corporate Development & S151 which provided the 2024/25 Quarter 1 update on the Council’s Treasury Management Strategy Statement and Annual Investment Strategy, attached as Appendix A within the report.

The report covered the following areas:

·         An economic update for the first quarter of the 2024/25 financial year;

·         The outlook for the remainder of the financial year along with interest rate forecasts;

·         A review of the Treasury Management Strategy Statement and Annual Investment Strategy;

·         The Council’s capital expenditure, as set out in the Capital Strategy, and prudential indicators;

·         A review of the Council’s investment portfolio for 2024/25;

·         A review of the Council’s borrowing strategy for 2024/25; and

·         A review of compliance with Treasury and Prudential Limits for 2024/25.

Members noted that the report referred to a key element of the Council’s Governance Framework and represented an important contribution to the evidence trail in support of the Annual Governance Statement 2024/25.

The Interim Treasury Manager, PSPSL highlighted that on 20^th May 2024 the limit of £7.5 million with the CCLA money Market Fund had been breached by £150,000. This was noticed and the S151 Officer was immediately informed, and it was corrected the following day. He advised that internal processes had been reviewed to ensure that further breaches would not occur.

The Chairman referred to the breach and queried whether it had impacted the Council in anyway. The Interim Treasury Manager, PSPSL assured members that there had been no negative impact to the authority.

Councillor David Middleton referred to staff pensions and the potential effect to the Council in respect of Central Government’s budget setting. The Deputy Chief Executive – Corporate Development & S151 stated that the pensions were managed by the West Yorkshire Pension Fund who administered the Lincolnshire County Council Pension scheme on behalf of all Lincolnshire authorities. She advised that monies deducted from salaries were only with the Council a few days as they had to paid into the pension fund very quickly.

Councillor Mike Gilbert referred to the General Fund Capital expenditure and queried whether the purchase of B&M was reflected within the numbers. The Interim Treasury Manager, PSPSL advised that if B&M had already been purchased it would be part of historic Capital Programmes.

RESOLVED:

That the report be noted.

[The Interim Treasury & Investments Manager, PSPSL left the meeting at 6.49 p.m., following consideration of the above item.]