Agenda and minutes

There were no apologies for absence received.

Functions:

1. To consider the following financial instruments, within the limits

detailed, in order to achieve a financial return:-

     · Property Funds – Investment up to £3m in individual property

     funds for a period of up to 5 years

     · Corporate bond investments – Investment of up to £3m in

     individual bonds for a maximum period not exceeding 3 years

     · Infrastructure investments e.g. solar bonds – Investment of up to

     £3m for a period of not exceeding 5 years

     · Sums can be invested with other Councils for a period of up to 5

     years, not exceeding an amount of £5m

     · Investments with banks and building societies can be made for a

     period of up to 3 years as long as the credit rating is A- or above

     and the sums do not exceed £3m.

The business case for each type of investment must be robust and

demonstrate the appropriate net rate of return for that class of

investment.

2. To approve commercial property investments with a value of up to

£5m in accordance with the Investing in West Lancashire –

Commercial Property Strategy.

RESOLVED:   That the Terms of Reference of the Committee be noted as follows:

Functions:

1.    To consider the following financial instruments, within the limits detailed, in order to achieve a financial return:

     ·     Property Funds – Investment up to £3m in individual property funds for a period of up to 5 years

     ·     Corporate bond investments – Investment of up to £3m in individual bonds for a maximum period not exceeding 3 years

     ·     Infrastructure investments e.g. solar bonds – Investment of up to £3m for a period of not exceeding 5 years

     ·     Sums can be invested with other Councils for a period of up to 5 years, not exceeding an amount of £5m

     ·     Investments with banks and building societies can be made for a period of up to 3 years as long as the credit rating is A- or above and the sums do not exceed £3m.

The business case for each type of investment must be robust and demonstrate the appropriate net rate of return for that class of investment.

2.    To approve commercial property investments with a value of up to £5m in accordance with the Investing in West Lancashire – Commercial Property Strategy.

To be appraised of any changes to the membership of the Committee in accordance with Council Procedure Rule 4.

There were no changes to the membership of the Committee.

If a Member requires advice on Declaration of Interest, they are advised to contact the Legal and Democratic Services Manager in advance of the meeting. (For the assistance of members a checklist for use in considering their position on any particular item is included at the end of the agenda sheet)

There were no declarations of interest.

Note: No other business is permitted unless, by reason of special circumstances, which shall be specified at the meeting, the Chairman is of the opinion that the item(s) should be considered as a matter of urgency.

There were no urgent items of business.

Members to receive an update from the Estates and Valuation Manager.

The Committee received an overview from the Estates and Valuation Manager, of the work the team does when considering the purchase of a property and the proposed training the Group would receive, along with asking Members if there were any specific issues they wished to be covered.

RESOLVED: That the overview be noted. 

Members to receive an update from the Investments Project Advisor.

The Committee received a presentation from the Investments Project Advisor on the implications of revised government policy on public works loan board borrowing.

RESOLVED: That the presentation be noted.

It is recommended that members of the press and public be excluded from the meeting during consideration of the following items of business in accordance with section 100A(4) of the Local Government Act 1972, on the grounds that it involves the likely disclosure of exempt information as defined in Paragraph 3 (Financial Business) of Part 1, of Schedule 12A to the Act and as in all circumstances of the case, not in the public interest in disclosing the information.

RESOLVED:   That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following items of business on the grounds that it involves the likely disclosure of exempt information as defined in paragraph 3 (Financial Business) of part 1 of Schedule 12A to the Act and as in all circumstances of the case, not in the public interest in disclosing the information.

Members to receive a presentation from the Investments Project Advisor.

The Committee received a presentation from the Investments Project Advisor which gave an overview of the Commercial Investment Property Strategy.

Questions and comments were raised in respect of the following:

·         Current position regarding existing properties where borrowing occurred

·         Categories that investments fall into

RESOLVED: That the presentation be noted

Members to receive an update from the Investments Project Advisor.

The Committee received an update from the Head of Finance, Procurement and Commercial Services, on the Commercial Property Investment Strategy. The Members were advised that a group has been set up comprising of Officers from Legal, Finance, Estates and Environmental Services who meet twice a month. Updates from the group will be brought to Members at future meetings.

RESOLVED: That the update be noted.

Members to receive an update.

The Committee received a presentation from the Finance and Audit Manager which gave an overview of the Long Term Treasury Management Investment Opportunities, to include previous and suggested revised approaches to Treasury Management and the possibility of piggy backing onto other Authorities who already have established investments in place where the background research has already been carried out.

Questions and comments were raised in respect of the following:

·         Ethical implications

·         Investments being in line with the Authorities ethos

·         Investments being made locally

·         Multifaceted Investments

·         Members to provide ideas and suggestions by mid-January 2021

RESOLVED: That the presentation be noted

Members to receive a presentation from the Investments Project Advisor.

The Committee received a presentation from the Investments Project Advisor, of the track record of the Commercial Investments made to date.

Questions and comments were made in respect of the following:

·         No past borrowing was done, which has affected performance. Future figures for investment would therefore look different.

·         The Authority provide a good service as a landlord, which could potentially secure investment to the area.

·         Investment not being purely for financial gain but to provide control over what types of business are brought into the area.

RESOLVED: That the presentation be noted