Agenda item

Consideration was given to a report of the Director of Finance that outlined the strategy for 2019/20 Treasury Management activities including Prudential Indicators, the Annual Investment Strategy, the Minimum Revenue Provision Policy Statement and linkages to the Capital Strategy.

It was reported that the strategy for 2019/20 covered two main areas, capital issues and treasury management issues and the report therefore outlined the implications and key factors in relation to each of the two main areas and made recommendations with regard to the Treasury Management Strategy for 2019/20.

The Council was required to operate a balanced budget which broadly meant that cash raised during the year would meet cash expenditure and part of the treasury management operation was to ensure that cash flow was adequately planned with cash being available when needed.

The second main function of the treasury management service was the funding of the Council’s capital plans, which provided a guide to the borrowing need of the Council, essentially the longer term cash flow planning to ensure that the Council could meet its capital spending obligations.

The Treasury Management Strategy 2019/20 was based on the current guidance which resulted from revisions to the Ministry of Housing, Communities and Local Government (MHCLG) Investment Guidance, the MHCLG Minimum Revenue Provision Guidance, thehe Chartered Institute of Public Finance and Accountancy (CIPFA) revised 2017 Prudential Code and Treasury Management Code.  These required additional disclosures which were included in the report together with alignment with the disclosures in the Capital Strategy report (itself prepared in accordance with the revised CIPFA Prudential and Treasury Management Codes).

The report was considered by the Performance and Value for Money Select Committee on the 24^th January 2018 and was commended to Cabinet.

Options/Alternatives considered

The Council was required to comply with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management the Council and has no option other than to consider and approve the contents of the report. Therefore no options/alternatives were considered.

RESOLVED – That:

1. The Capital Expenditure Estimates as per paragraph 2.1.2 be approved and commended to Council.
2. The Minimum Revenue Provision policy and method of calculation as per Appendix 1 of the report be approved and commended to Council.
3. The Capital Financing Requirement (CFR) projections as per paragraph 2.2.4 of the report be approved and commended to Council.
4. The projected treasury position as at 31/03/2019 as per paragraph 2.3.4.of the report be approved and commended to Council.
5. The Treasury Limits for 2019/20 to 2021/22 as detailed in section 2.4 of the report be approved and commended to Council.
6. The Borrowing Strategy for 2019/20 as per section 2.6 of the report be approved of the report be approved and commended to Council.
7. The Annual Investment Strategy as per section 2.10 including risk management and the creditworthiness policy at section 2.11 of the report be approved and commended to Council.
8. The level of investment in non-specified investments as detailed at Appendix 5 to the report be approved and commended to Council.