Issue - meetings

That the half-year report on targets and performance, in Sections 4-7 of the Cabinet report be approved.

Decision

That the half-year report on targets and performance, in Sections 4-7 of the Cabinet report be approved.

Reason for Decision

To provide Members with mid-year information on Treasury Management performance.

Implications

Financial

A summary of performance against the Council’s budgeted investment income is included in Section 5 of the report.

Value for Money

The Council is required to invest surplus funds to ensure that it maximises the benefit of cash flows.

Risk Implications

Failures in the banking sector have increased the risk of investment being lost. A prudent approach to investment is required to minimise the risk to the Council of investment losses. Currently all DBC investments are in prime UK banks or in UK Government bodies; such as the DMO and other local authorities.

Community Impact Assessment

There are no community impact implications

Health And Safety Implications

There are no health and safety implications.

Corporate Objectives

Dacorum Delivers – Optimising investment income for General Fund and Housing Revenue budgets whilst managing investment risk is fundamental to achieving the corporate objectives.

Advice

The Portfolio Holder for Finance & Resources said the report is brought to Cabinet in accordance with CIPFA best practice guidelines, and provides Members with an update on the Council’s current treasury position.

In terms of investment, interest rates remain low which has proved beneficial for the borrowing rates available to the Council, but has limited the return on the Council’s investment. The current low rates are not expected to change materially until late 2016 at the earliest.

The market expectation is that the US Federal Reserve will start to increase rates shortly and usually the UK does follow this lead.

The prudential indicators within the report demonstrate that the Council’s borrowing is sustainable and compliant with regulatory guidelines.

Consultation

Consultation took place with:

·        Capita Asset Services

Voting

None.