Agenda item

Finance Committee

(Catherine McGuinness, Deputy and Jeremy Paul Mayhew)

11 December 2018

2018/19 Treasury Management Strategy – Amendment

The Court considered a report which recommended Members approve an amendment to the 2018/19 Treasury Management Strategy Statement to include a borrowing policy for City’s Cash.

At its meeting on 11 December 2018, the Finance Committee considered a report which outlined the financing options for the City Corporation’s ambitious 10-year major projects programme, for both City Fund and City’s Cash.  As part of that report, the Finance Committee agreed to recommend to the Court of Common Council that the 2018/19 Treasury Management Strategy Statement should be amended to include a borrowing policy statement for City’s Cash, if required.

Based on current plans, the four major projects currently taking place potentially require financing of around £2.3 billion. Some £596m has already been approved  by the Court as a budget envelope for the Combined Courts / Police Accommodation project, together with £332m for the Museum of London relocation project.

As set out in Item 19 of the Court, the City Corporation’s bid of £130m for a bid for the Barking Power Station site was successful and the transaction was subsequently completed in late December 2018.  As part of that approval, the 2018/19 Treasury Management Strategy Statement would need to be amended to include borrowing for City’s Cash, in order to fund the site purchase and the approval of the Court was, therefore, now sought for the new borrowing policy statement.

Resolved – That the Court approve an amendment to the 2018/19 Treasury Management Strategy Statement to include a borrowing policy for City’s Cash.