Issue - meetings

To consider a report of the Leader of the Council (Policy, Finance & Devolution).

The Leader of the Council (Councillor Alex Ganotis) submitted a report (copies of which had been circulated) detailing the annual treasury report reviewing treasury management activities and the actual prudential and treasury indicators for 2016/17.

RESOLVED – (1) That approval be given to the actual 2016/17 prudential and treasury indicators in the report.

(2) That the annual treasury management report for 2016/17 be noted.

(3) That it be noted that no fundamental changes had been made during 2016/17 to the Treasury Management Policy Statement and Practices approved at the Council Meeting on 16 September 2016.

To consider a report of the Leader of the Council and Cabinet Member for Finance, Policy & Devolution.

The purpose of this report is to inform the Cabinet on the operation and effectiveness of the Council's Treasury Management function for 2016/17. 

Throughout 2016/17 the Council complied with its legislative and regulatory requirements.  The key actual prudential and treasury indicators detailing the impact of capital expenditure activities during the year, with comparators are found in the main body of the report. 

This annual review report is a backward-looking review of the treasury management operation for the previous financial year and is the last report in the 2016/17 reporting cycle.

In treasury management terms the 2016/17 financial year largely continued the challenging environment of previous years, with lasting low investment returns and counterparty risk remaining high.

The Cabinet is asked to recommend that the Council Meeting:

·       Approve the actual 2016/17 prudential and treasury indicators in this report;

·       Note the annual treasury management report for 2016/17;

·       Note that no fundamental changes have been made during 2016/17 to the Treasury Management Policy Statement and Practices approved at the Council meeting on 16 September 2016.          

Officer contact: Lorna Soufian 0161 474 4026, lorna.soufian@stockport.gov.uk

The Leader of the Council and Cabinet Member for Finance, Policy & Devolution submitted a report (copies of which had been circulated) informing the Cabinet on the operation and effectiveness of the Council’s Treasury Management function for 2016/17.

During 2016/17 the Council complied with its legislative and regulatory requirements.  The key actual prudential and treasury indicators detailing the impact of capital expenditure activities during the year, with comparators were set out in the report.

The 2016/17 financial year had continued to be challenging, with lasting low investment returns and counterparty risk remaining high.

The Leader of the Council emphasised the continuing good performance of the Treasury Management function in the difficult circumstances and its importance in sustaining the Council’s ambitious investment strategy.

RESOLVED – That in relation to the Treasury Management Annual Report 2016/17 the Council Meeting be recommended to:

·       approve the actual 2016/17 prudential and treasury indicators in this report;

·       note the annual treasury management report for 2016/17;

·       note that no fundamental changes have been made during 2016/17 to the Treasury Management Policy Statement and Practices approved at the Council meeting on 16 September 2016.

To consider a report of the Borough Treasurer.

The Council is required through regulations issued under the Local Government Act 2003 to produce an annual treasury report reviewing treasury management activities and the actual prudential and treasury indicators for 2016/17. This report meets the requirements of both the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).

During 2016/17 the minimum reporting requirements were that the full Council should receive the following reports:

·         an annual treasury strategy in advance of the year (Council, 3 March 2016);

·         a mid-year treasury update report (Council, 1 December 2016);

·         an annual report following the year describing the activity compared to the strategy (this report).

In addition, the Cabinet (previously the Executive) has received quarterly treasury management updates as part of the CPRR Reports on 16 August 2016 (First Update Report) and 7 February 2017 (Final Update Report).

The Cabinet is asked to recommend that the Council Meeting:

·         Approve the actual 2016/17 prudential and treasury indicators in this report;

·         Note the annual treasury management report for 2016/17;

·         Note that no fundamental changes have been made during 2016/17 to the Treasury Management Policy Statement and Practices approved at the Council meeting on 16 September 2016.

Recommendation

The Scrutiny Committee are asked to note and comment on the above recommendations to the Cabinet.

Officer contact Lorna Soufian on Tel: 0161 474 4026.

The Borough Treasurer submitted a report (copies of which had been circulated) setting out the Annual Treasury Report.

The Council was required through regulations issued under the Local Government Act 2003 to produce an annual treasury report reviewing treasury management activities and the actual prudential and treasury indicators for 2016/17. The report met the requirements of both the CIPFA Code of Practice on Treasury Management (the Code) and the CIPFA Prudential Code for Capital Finance in Local Authorities (the Prudential Code).

During 2016/17 the minimum reporting requirements were that the Council Meeting should receive the following reports:

·         an annual treasury strategy in advance of the year (Council, 3 March 2016);

·         a mid-year treasury update report (Council, 1 December 2016);

·         an annual report following the year describing the activity compared to the strategy (this report).

In addition, the Cabinet (previously the Executive) had received quarterly treasury management updates as part of the CPRR Reports on 16 August 2016 (First Update Report) and 7 February 2017 (Final Update Report).

The Leader of the Council (Councillor Alex Ganotis) attended the meeting to answer members’ questions.

The following comments were made/ issues raised:

·         Other Council’s had purchased properties not as part of a regeneration strategy but as a commercial investment and was this something this Council should explore in a similar way to the Greater Manchester Pension Fund.

RESOLVED – That the Council Meeting be recommended to:

·         Approve the actual 2016/17 prudential and treasury indicators in this report;

·         Note the annual treasury management report for 2016/17;

·         Note that no fundamental changes have been made during 2016/17 to the Treasury Management Policy Statement and Practices approved at the Council meeting on 16 September 2016.