Agenda item

It was reported that the budget for investment income in 2016/17 was £300,000 based on an average investment portfolio of £20 million at an interest rate of 1.5%.  The budget for debt interest paid in 2016/17 was £505,000, based on an average debt portfolio of £18 million at an average interest rate of 2.9%.  If actual levels of investments and borrowing, and actual interest rates differed from those forecast, performance against budget would be correspondingly different. 

Funding for the proposed corporate capital programme for 2016/17 – 2018/19 would need to be met through borrowing or out of revenue due to the fact that the Council’s pool of capital receipts was virtually exhausted.

Recommended to Council the adoption of

(i)        the Treasury Management Strategy for 2016/17 as set out in the agenda report;

(ii)       the Treasury Management Indicators for 2016/17 at Annex C to the agenda report; and

(iii)      the Annual Minimum Revenue Provision Policy Statement at Annex D to the agenda report.