Agenda item

Report of the Managing Director

The Leader and Cabinet Member with the Efficiency and Resources Portfolio introduced the report of the Managing Director (previously circulated), requesting that consideration be given to the Prudential Indicators and Limits for 2019/20 to 2021/22, relating to expenditure and Treasury Management activity; a policy statement relating to the Minimum Revenue Provision; and the Treasury Management Strategy 2019/20, which included the Annual Investment Strategy for 2019/20.

The submitted report outlined the Council’s Prudential Indicators for 2019/20 to 2021/22 and set out the expected treasury operations for that period and reported that the expenditure plans, Treasury Management and Prudential Borrowing activities indicated that they were within the statutory framework and consistent with the relevant codes of practice, were 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 Council’s Audit Committee, under their responsibilities for ensuring effective scrutiny of the Treasury Management Strategy and its policies, had considered the report and resolved that they were satisfied with the Prudential Indicators, the Treasury Management Strategy and Minimum Reserve Position, as presented therein.

RESOLVED – That it be recommended to the Special Meeting of Council scheduled to be held on 21 February 2019, that:-

(a)  the Prudential Indicators and limits for 2019/20 to 2021/22 as summarised in Tables 1 and 2 of the submitted report, be approved;

(b)  the Minimum Revenue Provision (MRP) statement as detailed at paragraphs 37 to 41 of the submitted report, be approved;

(c)  the Treasury Management Strategy 2019/20 to 2021/22, as summarised in paragraphs 45 to 70 of the submitted report, be approved; and

(d)  the Annual Investment Strategy 2019/20, as contained in paragraphs 71 to 112 of the submitted report, be approved.

REASONS – (a) In order to comply with the Prudential Code for Capital Finance in Local Authorities and the Department for Communities and Local Government (CLG) guidance on investments.

(b) To comply with the requirements of the Local Government Act 2003.

(c) To approve a framework for officers to work within when making investment decisions.