Issue - meetings

Report of the Council’s Service Director, Finance and Commercialisation detailing  the context within which the Council’s treasury management activity operates and sets out a proposed strategy for the coming year in relation to the Council’s cash flow, investment and borrowing, and the management of the numerous risks related to this activity.

The report of the Service Director Finance and Commercialisation was submitted detailing the context within which the Council’s treasury management activity operates and setting out a proposed strategy for 2018/19 to 2021/22. 

RESOLVED:

(i)  To approve the Council’s Treasury Management (TM) Strategy and Prudential Indicators for 2018/19, 2019/20, 2020/21 and 2021/22, as detailed within the report.

(ii)  To approve the 2018 Minimum Revenue Provision (MRP) Statement as detailed in paragraphs 85 to 94 and to delegate authority to the Chief Financial Officer (CFO) to approve any changes necessary that aid good financial management whilst maintaining a prudent approach.

(iii)  To approve the Annual Investment Strategy as detailed in paragraphs 43 to 66.

(iv)  To note that at the time of writing this report the recommendations in the Capital update report, submitted to Council on the 21 February 2018, have not yet been approved.  The indicators in the report are based on the assumption that they will be approved, but should the recommendations change, the Prudential Indicators may have to be recalculated.

(v)  To continue to delegate authority to the Chief Financial Officer (CFO) to approve any changes to the Prudential Indicators, Minimum Revenue Provision or borrowing limits that will aid good treasury management. For example, agreeing an increase in the percentage for variable rate borrowing to take advantage of the depressed market for short term rates.  Any amendments will be reported to cabinet as part of quarterly financial and performance monitoring and in revisions to the TM Strategy.

Report of Service Director Finance and Commercialisation providing the context within which the Council’s treasury management activity operates and sets out a proposed strategy for the coming year in relation to the Council’s cash flow, investment and borrowing, and the management of the numerous risks related to this activity.

The Committee considered the report of the Service Director Finance and Commercialisation detailing the Treasury Management Strategy and Prudential Limits 2018/19 to 2021/22.

The Committee noted that there was a change in the Minimum Revenue Provision (MRP) which was as result of CIPFA publishing revised editions of the Treasury Management and Prudential Codes in December 2017 which effected the property investment fund and changed the way in which repayment was made.  The Council was currently considering this change which would result in a pressure in 2018/19 and future years which would be reported to full Council on 21^st February 2018.

Councillor Chaloner, Cabinet Member for Finance was in attendance and with the consent of the Chair addressed the meeting.

RESOLVED:

(i)  That the Treasury Management (TM) Strategy for 2018/19 as outlined in the report be endorsed;

(ii)  That the 2018 Minimum Revenue Provision (MRP) Statement as detailed in paragraphs 85 to 94 be endorsed;

(iii)  That the indicators as reported had been set on the assumption that the recommendations in the Capital update report would be approved by Council on 21^st February 2018.  Should the recommendations change the Prudential Indicators may have to be recalculated; and

(iv)  That due to the timing of this report changes may still be required following the finalisation of capital and revenue budgets and therefore any significant changes to this report would be highlighted in the final version presented to Council on 21^st February.