Agenda item

Mid Year Prudential Indicators and Treasury Management Monitoring Report 2020/21

Report of the Managing Director.


The Cabinet Member with the Resources Portfolio introduced the report of the Managing Director (previously circulated) seeking approval of the revised Treasury Management Strategy, Prudential Indicators and providing a half yearly review of the Council’s borrowing and investment activities.


It was reported that the mandatory Prudential Code, which governs 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 revisions to the indicators which related to a reduction in the Operational Boundary and the Authorised Limit to allow for any additional cashflow requirements.


Particular reference was made to the investments of £30m in property funds, which were expected to increase the net return on investment by around £0.500m in future years.


It was reported that the Audit Committee had considered the report and were satisfied with the Council’s borrowing and investment activities, reported indicators and revised borrowing limits.


RESOLVED - (a)  That the revised prudential indicators and limits, as detailed in Tables 1 to 6, 8, 11 and 15 to 18 in the submitted report, be noted.

 (b)  That the proposal, as detailed in paragraph 32 of the submitted report, regarding the potential of Darlington College accessing the Council’s loan facility in accordance with the Capital Strategy, be noted.

(c)  That the over-spend in the Treasury Management Budget (Financing Costs) of £0.011m, as shown in Table 12 of the submitted report, be noted.

 (d)  That the report be forwarded to Council in order for the updated prudential indicators to be approved.

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.


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