Agenda item

Report of the Group Director of Operations.

The Cabinet Member with the Resources Portfolio introduced the report of the Group Director of Operations (previously circulated) requesting that consideration be given to the revised Treasury Management Strategy and Prudential Indicators and providing a mid-yearly review of the Council’s borrowing and investment activities.

It was reported that the mandatory Prudential Code, which governed the Council’s borrowing, required Council approval of controls, called Prudential Indicators, which related to capital spending and borrowing.  The Prudential Indicators were set out in three statutory annual reports, a forward looking annual treasury management strategy; a backward looking annual treasury management report; and the mid-year update.  The key objectives of those three annual 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 to £148.025m and the Authorised Limit to £245.331m to allow for any additional cashflow requirements.

RESOLVED - (a)  That the revised prudential indicators and limits, as detailed within Tables 1 to 6, 8, 10 and 12 to 17 of the submitted report, be noted.

(b)  That the Treasury Management Budget (Financing Costs) projected outturn as shown in Table 11 of the submitted report, be noted.

 (c)  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.