ITEM CC8 COUNTY COUNCIL – 4 NOVEMBER 2008
FINANCIAL MONITORING AND REVISIONS TO THE TREASURY MANAGEMENT STRATEGY
The Cabinet has considered, at its meeting on 21 October 2008, a financial monitoring report covering the period to the end of August 2008. It included projections for revenue, balances, reserves and capital. The report set out explanations where the forecast outturn was significantly different from the budget with action plans to recover the position where appropriate.
It was reported that the in-year overspend for Directorates is forecast to be £1.677m. The year-end forecast of general balances is £19.438m. After taking into account the forecast Directorate outturn, the consolidated revenue balances forecast is £17.761m.
The projected in-year commitment on capital was estimated at £101.6m, compared with the July capital programme of £105.3m, a variation of -£3.7m. Actual expenditure to the end of August was £21.5m, 21% of projected spend.
The Cabinet has noted the report and has approved virements set out in the report to the Cabinet.
The Cabinet has also approved an updated capital programme. The revised programme reflected the projected spend in 2008/09, as well as changes to phasing of schemes and revisions to capital receipts.
The Cabinet has noted the recent turmoil in financial markets that had made managing investments within the existing credit matrix set out in the Treasury Management Strategy increasingly difficult and consequently has agreed to recommend to Council amendments to the strategy for approval.
The Cabinet RECOMMENDS Council to approve:
(a) the addition to the approved credit matrix of any nationalised bank which has a government guarantee for wholesale deposits, with maturities up to the period of the guarantee, up to a limit of £15m; (b) the increase to the lending limit for the Debt Management Account Deposit Facility to 100% of the investment portfolio; (c) an increase to the level of funds placed externally with Investec by £20m. These additional funds will be held in a sub-fund which invests in UK Sovereign Issues, Government Gilts and European Supranationals (traded in Sterling); (d) the revised tables of specified and non-specified investments as set out in the Annex (download as .doc file); (e) any further changes required to the credit matrix be delegated to the Chief Finance Officer after consultation with the Cabinet Member for Finance and leaders of the Opposition and other groups.
KEITH R MITCHELL CBE Leader of the Council October 2008
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