Issue - meetings

RECOMMENDED (TO COUNCIL):

1.                That the Treasury Management Strategy Statement which includes the Annual Treasury Investment Strategy for 2025/26 (and the remainder of 2024/25) is approved;

2.                That authority is delegated to the Section 151 Officer to manage the council’s pooled property investment and long-term borrowing according to the Treasury Management Strategy Statement as appropriate; and

3.                That authority is delegated to the Section 151 Officer, who in turn discharges this function to Hampshire County Council’s Director of Corporate Operations, as agreed in the Service Level Agreement, to manage all council investments (other than the high yield portfolio) and short-term borrowing according to the Treasury Management Strategy Statement as appropriate.

Councillor Cutler (Cabinet Member for Finance and Performance) moved that the recommended minute of Cabinet be approved and adopted (seconded by Councillor Tod, Leader and Cabinet Member for Asset Management).

Council proceeded to ask questions and then debate the matters in the recommended minute and report.

RESOLVED:

That the recommended minute of Cabinet held 12 February 2025 (as follows) be approved and adopted:

1.                That the Treasury Management Strategy Statement which includes the Annual Treasury Investment Strategy for 2025/26 (and the remainder of 2024/25) is approved;

2.                That authority is delegated to the Section 151 Officer to manage the council’s pooled property investment and long-term borrowing according to the Treasury Management Strategy Statement as appropriate; and

3.              That authority is delegated to the Section 151 Officer, who in turn discharges this function to Hampshire County Council’s Director of Corporate Operations, as agreed in the Service Level Agreement, to manage all council investments (other than the high yield portfolio) and short-term borrowing according to the Treasury Management Strategy Statement as appropriate.

That Cabinet recommends to Council:

1.    That the Treasury Management Strategy Statement which includes the Annual Treasury Investment Strategy for 2025/26 (and the remainder of 2024/25) is approved;

2.    That authority is delegated to the Section 151 Officer to manage the council’s pooled property investment and long-term borrowing according to the Treasury Management Strategy Statement as appropriate; and

3.    That authority is delegated to the Section 151 Officer, who in turn discharges this function to Hampshire County Council’s Director of Corporate Operations, as agreed in the Service Level Agreement, to manage all council investments (other than the high yield portfolio) and short-term borrowing according to the Treasury Management Strategy Statement as appropriate.

*NB recommendations to Council are not subject to call-in.

Councillor Cutler introduced the report and advised that the report had been considered by Scrutiny Committee on 4 February and the minutes of that meeting had been circulated to all present and published on the web here.  The Committee had asked a number of questions which had been responded to at the meeting.

At the invitation of the Leader, Councillor Lee asked for confirmation that the council only invested in fossil free investments?

Councillor Cutler confirmed this was the case.

Cabinet agreed to the following for the reasons set out in the report and outlined above.

RECOMMENDED (TO COUNCIL):

1.                That the Treasury Management Strategy Statement which includes the Annual Treasury Investment Strategy for 2025/26 (and the remainder of 2024/25) is approved;

2.                That authority is delegated to the Section 151 Officer to manage the council’s pooled property investment and long-term borrowing according to the Treasury Management Strategy Statement as appropriate; and

3.                That authority is delegated to the Section 151 Officer, who in turn discharges this function to Hampshire County Council’s Director of Corporate Operations, as agreed in the Service Level Agreement, to manage all council investments (other than the high yield portfolio) and short-term borrowing according to the Treasury Management Strategy Statement as appropriate.

RECOMMENDATION:

It is recommended that scrutiny committee comment on the proposals within the attached cabinet report, ref CAB3496 which is to be considered by cabinet at its meeting on the 12 February 2025.

Councillor Neil Cutler, Cabinet Member for Finance and Performance introduced the report, ref CAB3496 which set out proposals for the Treasury Management Strategy 2025 - 2026, (available here).  Councillor Cutler advised that the Treasury Management Strategy dealt with the investments and borrowings for the Council and was managed by Hampshire County Council. Gemma Farley, on behalf of Hampshire County Council was present and provided the committee with an update which included the following:

1.    The Treasury management strategy covered the next three financial years as required under the CIPFA code.

2.    The main changes in the new Treasury Strategy were that the balance sheet forecast and liability benchmark indicated that the Council might need to secure additional external borrowing in 2025/26 to meet the full delivery of its capital programme.

3.    The Chief Finance Officer would monitor the situation with Arling Place and Hampshire Investments and the Borrowing team and secure additional borrowing when required.

4.    Changes were made to reflect the reducing cash balances and the maximum maturity date that could be assigned to investments.

5.    This change should ensure that Winchester City Council was not forced to borrow ahead of time due to outstanding investments.

The committee was asked to comment on the proposals within the attached cabinet report, ref CAB3496, which was to be considered by the cabinet at its meeting on 12 February 2025.

The committee reviewed the report, and a question was asked about how the strategy was managed when there was a shared undertaking which was responded to by Gemma Farley, Hampshire County Council accordingly.

RESOLVED

1.    That the report be noted.

2.    That cabinet considers the committee’s comments raised during the discussion of the item.