Public reports pack PDF 3 MB - Blaby District Council

Investment Partnership to reduce the Council’s exposure to current and
potential future borrowing costs;
• To redirect a proportion of the funds from short dated highly liquid
financial instruments into longer dated fixed rate financial instruments
to achieve a higher rate of return.
During 2011/12, the Council utilised £1m to support the Local Authority
Mortgage Scheme, and a further £1.8m to repay maturing long term loans.
Initially the remaining funds were left with Scottish Widows in short dated
liquid investments since the rate of return showed signs of improvement
towards the end of 2011/12, and in the first half of this financial year.
However, given the fund managers’ forecast of a downturn in the rate of
return it is considered that the time is right to withdraw the remaining balance
and instead manage the investments in house alongside the Council’s other
cashflow surpluses. By locking funds into longer dated fixed term rates offered
by approved counterparties the Council will be able to achieve more certainty
in its investment returns.
Earnings on in-year cash flow surpluses have significantly outperformed
Scottish Widows, with an average annual earnings rate of 1.48% over the first
six months of the year. The half year budget of £30,000 has been exceeded
by £49,295 producing a total income figure of £79,295. This compares with
half year earnings of £69,175 from cash flow surpluses in the 2011/12
financial year. The full year budget for 2012/13 has therefore been increased
to £160,000 compared to the original budget which was £60,000.
6.3.6 Refuse/Recycling Income
At the half year stage income from refuse/recycling activities was £70,943
short of the profiled budget. A general fall in the prices achievable for
recyclable materials suggest that by the year end income will fall short of the
original budget by approximately £162,000.
6.3.7 Pavilion – Huncote
The table above indicates that income generation from activities at the
Pavilion in Huncote is currently slightly above profile at £85,039 compared
with a half year budget of £82,140. Income is forecast to outturn at year end
at around £153,300, marginally above the original budget.
6.3.8 Land Charges
Income from this source is above profile at the half year stage. Actual income
is £90,674 against a budget of £85,000, although historically fee income tends
to fall away during the winter months and it is expected that by the year end
income will be in line with the approved budget. The Council continues to
carry out the Land Charges function on behalf of Hinckley & Bosworth Council
and income and expenditure in respect of this aspect of the service is
included in the figures above.
6.3.9 Car Park Income
Income from charges for parking in 2012/13 was included in the original
budget at £125,700. Actual income to 30 th September amounts to £51,948
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