Issue - meetings

Minute 104 refers

The Executive Member for Finance submitted a report setting out a number of revisions to the Treasury Management arrangement, the detail of which was set out in the report now submitted. 

The Director of Finance and Support Services explained that these revisions would give the Council the framework it needed in terms of its roles and responsibilities, to invest in Pooled Property Funds.  The Director of Finance and Support Services stated that the strategy would be refreshed as part of the budget setting meeting cycle in conjunction with the Council’s Medium Term Finance Plan and capital strategy in February 2015.

The Director of Finance and Support Services explained that this was a strategy document and subject to refresh annually as required by appropriate regulations.

In response to a query by Councillor M Pope regarding “sovereignty support” being withdrawn the Interim Principal Accountant provided an update that the intention was for the United States, Europe and the UK to implement the regulatory changes.

Councillor D Andrews suggested that the Council should be investing locally in property as this would demonstrate a commitment to local residents and communities. 

The Director of Finance and Support Services drew Members’ attention to the proposed framework by which the Council would invest in terms of property funds and indirect investment in property and explained the differences of each.   Once approved, this would allow the Council to move ahead.  It was noted that work on selecting an appropriate partner on the property fund had been taking place in the background and the results would be reported for Members’ consideration when complete.

The Director of Finance and Support Services explained what considerations needed to be taken into account from a property fund investment viewpoint in terms of risk, liquidity, cash flow and the need to take a balanced view.

The Director of Finance and Support Services drew Members’ attention to paragraph 9.6 of Essential Reference Paper “B” of the proposed regulatory changes to Financial Institutions and paragraph 9.6.2 the steps for mitigating the consequent risks, which are likely to take place of the time period of the strategy.

In response to a query from Councillor M Pope regarding property funds investment selection, the Director of Finance and Support Services stated that the Council would be considering the various risks and also the availability of a secondary markets should there be a need to withdraw from the fund quickly.

Councillor R Sharma advocated a “cautious” approach.  The Director of Finance and Support Services stated that the Council would look at a range of issues including past performance.

Councillor J Wyllie asked that officers give consideration to local “seed-bed” units.  The Director of Finance and Support Services explained that the Council was constrained by lack of land and that local investment was about finding the right place in which to invest.

The Interim Principal Accountant drew Members’ attention to paragraph 3 of Essential Reference Paper “B” which showed that the Council was investing surplus cash which would attract low rates  ...  view the full minutes text for item 104