Agenda item

Report of the Executive Director of Resources and Governance

The Cabinet Member with the Resources Portfolio introduced the report (previously circulated) of the Executive Director of Resources and Governance (previously circulated) requesting that consideration be given to the revised Treasury Management Strategy and Prudential Indicators and providing a mid-yearly review of the Council’s borrowing and investment activities.

It was reported that the mandatory Prudential Code, which governed the Council’s borrowing, required Council approval of controls, called Prudential Indicators, which related to capital spending and borrowing. The Prudential Indicators were set out in three statutory annual reports, a forward-looking annual treasury management strategy; a backward-looking annual treasury management report; and the mid-year update. The key objectives of those three annual reports were set out in the submitted report, together with the key proposed revisions to the indicators which related to a reduction in the Operational Boundary to £182.456m and the Authorised Limit to £276.297m to allow for any additional cashflow requirements.

RESOLVED - It is recommended that:

a)      The revised prudential indicators and limits within the report in Tables 1 to 6, 8, 10 and 12 to 17 are examined

b)      (b) The Treasury Management Budget (Financing Costs) projected outturn shown in Table 11 is noted

c)      (c) That this report is forwarded to Council with comments from this committee, in order for the updated prudential indicators to be approved

REASON - The recommendations are supported by the following reasons:

a)      In order to comply with the Prudential Code for Capital Finance in Local Authorities.

b)      To inform Members of the performance of the Treasury Management function

c)      To comply with the Local Government Act 2003

d)      To enable further improvements to be made in the Council’s Treasury Management function