Agenda and minutes

Councillor Langton was elected Chair of the Sub-Committee for the remainder of 2022/23.

To confirm as a correct record (not done at the 21^st January 2022 meeting at it was inquorate)

These minutes were approved and signed as a correct record.

To confirm as a correct record

These minutes were approved and signed as a correct record.

The Sub-Committee was presented with a summary of the Council’s investment and borrowing position as per Appendix A. The report set out the final position for financial year 2021/22, together with an update and accompanying scenario planning on the future of the Council’s long-term investments. This reflected the recommendation from the previous meeting to retain investments in the following four funds until the Government decides whether to extend the current ‘statutory override’ (of usual accounting practice) which prevents gains and losses in capital values from impacting on the revenue budget:

(i)      CCLA (diversification fund)

(ii)     CCLA (property fund)

(iii)   Schroders bond fund

(iv)   UBS multi-asset fund

The accompanying report advised that the Council’s contract for expert Treasury Management advice with Link Group had terminated on 30^th April 2022 and a new contract had been entered into with Arlingclose.

In response to Members’ questions, it was confirmed that:

·                  the rate of interest charged on loans from the Public Works Loan Board was fixed until maturity

·                  a debt profile of the various loans taken out by the Council, together with associated maturity dates, could be provided

·                  the swings in the value of short term investments held in money market funds over the course of the year, and since the last report, reflected a fluctuating cash position, e.g. due to Government funded grant schemes which the Council was required to administer

·                  quoted yield rates are based on current asset values, a presentation that should be reviewed.

The report also confirmed that the current statutory override would remain until 31^st March 2023 and that the Government is expected to consult shortly before deciding whether to renew it. It was hoped that a decision would be made in time to inform the 2023/24 budget setting process. In the meantime, the Council’s investment options, according to whether the override would continue, had been scoped in accordance with Appendix C. 

In the event of the override being removed, Arlingclose had advised that disinvesting from funds (i), (iii) and (iv) should not present difficulties. While this was not necessarily the case for the CCLA property fund, there did not appear to be any appetite among other authorities to withdraw and the Council was advised to maintain its investment.

A discussion took place regarding the redemption proceeds from Funding Circle loans. This related to the meeting on 24^th January 2020 when the Sub-Committee agreed to disinvest from Funding Circle, with the redemption proceeds being invested elsewhere within the Council’s treasury portfolio, namely 25% to each of the funds at (i) to (iv) above. However, in light of the challenges imposed by the pandemic, redeemed Funding Circle proceeds had, instead, been used ever since to support the Council’s cashflow. Following a suggestion from Councillor Jones, it was agreed that this matter be reviewed at the Sub-Committee’s next meeting.

            R E S O L V E D – that:

A.    the Council’s investment and borrowing position at 31^st March 2022, as set out  ...  view the full minutes text for item 4.

The Sub-Committee resolved to move into ‘Part 2’ for this item in accordance with Paragraph 3 (information relating to financial or business affairs) of Part 1 of Schedule 12A of the Local Government Act 1972.

A verbal update was given about the following commercial investment properties owned by the Council and its subsidiary company, Gryllus properties:

TDC properties:

-        Linden House, Caterham on the Hill (the existing tenant was in the process of renewing their lease, the terms of which were discussed)

-        Redstone House, South Nutfield (the property was being marketed for sale – Members were informed of progress)

-        Quadrant House, Caterham Valley (the refurbishment scheme was now scheduled for completion by the end of September - the marketing process for letting the vacant units was underway - issues regarding rent arrears were discussed). 

Gryllus properties:

-        Castlefield House, Reigate

-        80-84 Station Road East, Oxted

-        30-32 Week Street, Maidstone (Members were informed about expressions of interest from prospective new tenants. It was agreed that options regarding this asset should be presented to the next scheduled meeting on 4th November 2022).

            R E S O L V E D  - that an options analysis regarding the future of 30-32 Week Street, Maidstone be presented to the Sub-Committee on 4^th November 2022 to enable Members to assess the relative financial merits of selling, letting or leaving the building unoccupied for a limited period.