Agenda and minutes

Apologies for absence were received from Tim Levene and Deputy Henry Pollard.

There were no declarations.

To agree the public minutes and non-public summary of the meeting held on 22 November 2018.

RESOLVED - That the public minutes and non-public summary of the meeting held on 22 November 2018 be agreed as a correct record.

Report of the Town Clerk.

The Board noted that Treasury Management training with Link Asset Services had taken place that morning. The Treasury Management Strategy for the ensuing year was on the agenda for consideration.

RESOLVED – That the list of outstanding actions be noted.

Report of the Chamberlain

The Board received a report of the Chamberlain concerning the monthly investment analysis review for September 2018. The Board noted the current investment list, total investment values and average rate of return set out in the report.

A Member asked for an update on the loan to Northamptonshire County Council, which had been due to mature in January 2019. The Chamberlain responded that the loan had been repaid on time, with interest.

In response to a query from a Member, the Chamberlain explained that business rates were paid in over ten months, and were paid out to central government over twelve months in scheduled, equal payments. As a result, cash balances were lower for a period during the year as funds continued to be paid out when they were not also being collected.

The Chamberlain advised the Board that the maximum amount for lending to banks could be reviewed and changed if it was the will of the Board. The Board noted that as the City Corporation’s bank, the maximum amount for Lloyd’s was higher to give necessary flexibility with regards to cashflow. Building societies were considered on the basis of their balance sheet rather than their long-term rating, and were given a maximum amount of £20 million and maximum loan duration of one year, apart from Nationwide, which was allocated a higher maximum amount and longer loan duration because of its size. The Board noted that the long-term ratings set out were attributed by Link Asset Services.

RESOLVED – That the report be noted.

Report of the Chamberlain

The Board considered a report of the Chamberlain setting out the City’s Treasury Management Strategy Statement and Annual Investment Strategy for 2019/20. The Board noted the colour copies of the Strategy provided and that changes made from the previous year’s strategy were marked in yellow. The Board also noted the addendum tabled by the Chamberlain setting out changes to the capital programme. These revisions would be incorporated into the report submitted to the Finance Committee. The Chamberlain advised that the strategy had been amended by the Court of Common Council in December 2018 to include a borrowing policy for City’s Cash.

The Board discussed the parameters for maximum loan durations and investment and borrowing limits. The Chamberlain advised the Board that the limits were generally there to provide flexibility and keep options open in case a good opportunity arose. All local authorities had to set an authorised limit for external debt and the figures given represented the upper threshold.

The Board noted the table setting out maturity structure of borrowing, and was advised that this addressed refinancing risk, allowing for the spread of debt for maturity at different times. This would mitigate the risk of the City Corporation having an excessive amount of debt to refinance in any one period. A Member queried the upper limit of 50% allocated for borrowing under 12 months or less, and suggested that 25% may be more appropriate as it encouraged discipline and carried less risk. The Chamberlain advised that the recommended limit allowed flexibility. The Board then discussed approved counterparties and their investment limits, noting that Lloyds, as the bank used by the City Corporation, required a higher limit for greater flexibility, otherwise the limit for UK banks was £100 million.

A Member asked whether the limits on lending to foreign banks were

There were no questions.

There was no other business.

MOTION - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of the Schedule 12A of the Local Government Act.

RESOLVED - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of the Schedule 12A of the Local Government Act.

Item No.                                                          Paragraph(s) in Schedule 12A

10 - 16                                                                                     3

17 - 18                                                                                     -

To agree the non-public minutes of the meeting held on 22 November 2018.

RESOLVED - That the non-public minutes of the meeting held on 22 November 2018 be agreed as a correct record.

Report of the Town Clerk

The Board received a list of non-public outstanding actions.

Report of the Chamberlain

Report of Mercer

The Board received reports of the Chamberlain and of Mercer.

Report of the Chamberlain

The Board considered a report of the Chamberlain.

Report of the Chamberlain

The Board considered a report of the Chamberlain.

There were no non-public questions.

There was no other business.