Agenda item

Report of the Managing Director

The Managing Director submitted a report (previously circulated) requesting that this Committee reviews and scrutinises the Council’s Treasury Management Strategy 2019/20 and its associated policies, the Treasury Management Prudential Indicators and a policy statement relating to the Minimum Reserve Position (MRP) and make any necessary amendments or  comments thereon prior to consideration by Cabinet and Council.

The submitted report outlined the Council’s Prudential Indicators for 2019/20- 2021/22 and set out the expected treasury operations for this period and it was reported that the Council’s expenditure plans, treasury management and prudential borrowing activities indicated that they were within the statutory framework and consistent with the relevant codes of practice, prudent, affordable and sustainable and were an integral part of the Council’s Revenue and Capital Medium Term Financial Plans.

The submitted report also included a Treasury Management Strategy for 2019/20, covering the Council’s debt and investment projections estimates and limits on future debt, expected movements in interest rates and the Council’s borrowing and investment strategies for future years.  Key objectives of the investment strategy were outlined noting that the primary objective was the safeguarding of the repayment of principal due to the Council, ensuring adequate liquidity of those investments and finally the rate of return on the investment.

It was reported that the revised 2017 CIPFA Prudential and Treasury Management Code required all local authorities, from 2019 - 20 to prepare a Capital Strategy report which would ensure that all Members fully understood the overall long-term policy objectives and resulting capital strategy requirements, governance procedures and risk appetite and that this report would be considered by Cabinet at its meeting scheduled to be held on 12 February 2019.

Particular reference was also made to the lifting of the Housing Revenue Account debt cap.

RESOLVED – That this Audit Committee is satisfied with the Prudential Indicators and Treasury Management Strategy, the Minimum Revenue Position statement and the Annual Investment Strategy 2019/20, as presented in the submitted report, and that the report be forwarded to Cabinet for its onward referral to Council for consideration.