Issue - meetings

Report of the Chief Finance Officer

The Head of Financial Services introduced the item and explained that both the Treasury Management Panel and Cabinet had met to consider this report. The report highlighted a need to change some of the Council’s current Prudential indicators in respect of the additional Housing Revenue Account (HRA) debt which the Council would be required to take on under the HRA Self Financing Proposals. The proposed additional debt amounted to £27.9 million.

The Leader of the Council welcomed the changes relating to the financing of the Housing Revenue Account which meant that money would be kept in Cheltenham for investment in its housing stock.  He stated that this was a good news report, particularly in view of the continuing difficult economic climate.

When asked whether the receipt of the Icelandic investment could be used to offset debt rather than being reinvested, the Head of Financial Services explained that this was unlikely to be received prior to 1 April 2012. He emphasised that the new borrowing would be wholly funded by the Housing Revenue Account and so there would be no cost to the council tax payer. .

The Cabinet Member Housing and Safety expressed her concerns that members may not have a full understanding of the Housing Revenue Account and suggested that a seminar for all members may be useful.

Upon a vote the recommendations were agreed unanimously.

RESOLVED that in compliance with the requirements of the CIPFA Code of Practice the report be noted.

Report of the Director of Resources

RESOLVED THAT

1. The contents of the summary report of the treasury management activity during the first six months of 2011/12 be noted.

2. The new limits set for the Authorised Borrowing Limit to £109m and the Operational Boundary for Borrowing for 2011/12 to £99m which takes into account the additional HRA debt allocation as detailed in section 5 be recommended to Council for approval.

The Director of Resources introduced the Treasury Mid-Term Report 2011/12. He updated members on the latest information regarding the council's investment in Icelandic Banks. He was pleased to announce that the Supreme Court in Iceland had upheld the council's priority status as a test case.

The Leader congratulated officers for their hard work in achieving a satisfactory outcome regarding Icelandic Banks.  He also highlighted that the Local Government Association had been doing some very effective lobbying on behalf of the authorities affected. In this way the council had more than recouped their subscription for membership of the LGA which they had considered cancelling in the previous year.

RESOLVED THAT

1. The contents of the summary report of the treasury management activity during the first six months of 2011/12 be noted.

2. The new limits set for the Authorised Borrowing Limit to £109m and the Operational Boundary for Borrowing for 2011/12 to £99m which takes into account the additional HRA debt allocation as detailed in section 5 be recommended to Council for approval.