To note the council’s treasury management activities for the period 1 April 2007 to 31 March 2008 and the outturn of Prudential Indicators for the year 2007/08.

The Cabinet Member Resources presented the Treasury Management Activities 2007/08 report and the outturn of Prudential Indicators for the year 2007/08.  He stated that it covered the Council’s performance for 2007/08 through cash flow, banking and money markets and borrowing transactions; adding that a significant contribution had been made to the Council through investment.  During the year the average amount in daily investments was £53.7m and £3.27m was received through investment income.  The overall performance in the year allowed income from investments to exceed the budget by £804k, which helped produce an overall underspend.  He reminded Cabinet that it was not only incumbent upon the Council to spend tax payers’ money wisely, but to invest it wisely also.  The savings made significantly contributed to the improvement of the waste and recycling arrangements for the county and congratulated the Treasury Management Team on their performance.

The Head of Financial Services drew Cabinet’s attention to paragraph 3.5 of the report regarding the externally managed investments.  He stated this was now managed by the treasury team with some of the monies going out to the schools.  A Member in attendance raised concern over the monies held on behalf of the schools and felt this should be held separately as the Council only managed the funds on behalf of the schools.  Cabinet was informed that the funds were accounted for separately even though they were held jointly.  A question was raised on the nearly £106m in long term borrowing and whether the maximum the authority could borrow was £169m.  Cabinet was advised this was correct as advised at the recent July Council meeting.