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 revised Treasury Management Strategy and Prudential Indicators and providing a half-yearly review of the Council’s borrowing and investment activities.

The report stated that the mandatory Prudential Code, which governed Council’s borrowing, required Council approval of controls, called Prudential Indicators, which related to capital spending and borrowing. The indicators were set out in three statutory annual reports and the key objectives of those reports were set out in the submitted report, together with the key proposed revision to the indicators which related to a reduction in the Operational Boundary and the Authorised Limit to allow for any additional cashflow requirement.

The Audit Committee, at its meeting on 30 January 2019, examined the mid-year prudential indicators and treasury management activity and were satisfied with the Council’s revised prudential indicators and limits and the revised Treasury Management Budget (Financing Costs).

RESOLVED – (a) That it be recommended to Council, that the revised prudential indicators and limits, as detailed within Tables 1 to 6, 8 and 15 to 18 of the submitted report, be approved.

(b) That the reduction in the Treasury Management Budget (Financing Costs) of £0.590m, as shown in Table 12 of the submitted report, be noted.

REASON – (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.