Agenda item

Report of the Managing Director

The Managing Director submitted a report (previously circulated) on the revised Treasury Management Strategy, Prudential Indicators and to provide a half-yearly review of the Council’s borrowing and investment activities.

The submitted report stated that the Prudential Indicators were examined by the Audit Committee on 20 November 2019, and it was agreed at that meeting that the updated Prudential Indicators and revised Operational Boundary and Authorised Limit for borrowing be referred to Council, via Cabinet, for approval. It was also reported that the Audit Committee was satisfied with the Council’s borrowing and investment activities, the reported Prudential Indicators, and the revised borrowing limits.

The Prudential Indicators were set in three statutory annual reports to Council, and the submitted report followed the Council’s approval in February 2019 of the 2019/20 Prudential Indicators and Treasury Management Strategy. The key objectives of the three annual reports were to ensure that governance of the large amounts of public money under the Council’s Treasury Management activities complied with legislation and met the high standards set out in the codes of practice, to ensure that borrowing was affordable, and to report performance of the key activities of borrowing and investments.

The submitted report also outlined revisions to the Prudential Indicators in terms of a reduction to Operational Boundary to £185.498M, and a reduction to the Authorised Limit to £194.773M to allow for any additional cashflow requirement.

RESOLVED – (a) That the revised prudential indicators and limits within the report in Tables 1 to 6, 8 and 15 to 18, be examined.

(b) That the over-spend in the Treasury Management Budget (Financing Costs) of £0.033m, as detailed in Table 12, be noted.

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.