Issue - meetings

To consider a report by the Head of Resources regarding the Treasury Management Strategy.

RECOMMENDS

that the Council approve:

  i.  the Treasury Management Policy, Appendix 2 of the submitted report;

  ii.  the Treasury Management Strategy, Appendix 3 of the submitted report (subject to the amendments required to reflect the additional Disabled Facility Grant that has been awarded to the Council);

  iii.  the Prudential, Treasury Management and CIS Indicators, Appendix 4 of the submitted report; and

  iv.  the Annual Minimum Revenue Provision Policy 2016/17, Appendix 5 of the submitted report.

By way of a report from the Head of Resources (a copy of which is appended in the Minute Book) the Cabinet was presented with the Treasury Management Strategy (TMS).

The Council was required by law to approve, on an annual basis a Treasury Management Strategy.  This requirement was enshrined within relevant Codes of Practice issued by the Chartered Institute of Public Finance and Accountancy (CIPFA) and other guidance issued by central government.

The aim of the TMS was to manage the Council’s investments, cash flows, banking, money market and capital market transactions, loans and borrowings within the requirements of an effective control environment but linking this with the pursuit of optimum performance and yield, and at the same time managing the portfolio’s risk profile.

The Treasury Management Strategy also took into account the Commercial Investment Strategy (CIS) Business Plan that had been approved by Cabinet at its meeting in December 2015. The Cabinet was informed of progress regarding investments as part of the CIS.

The Cabinet were reminded that following confirmation of the Disabled Facility Grant the Council would receive from the Better Care Fund, the Treasury Management Strategy would require slight amendment.

Having considered the comments of the Overview and Scrutiny Panel (Finance and Performance) the Cabinet concurred that it did not support the suggestion by the Panel of suspending CIS investment to address the £3.5m funding gap.  The Cabinet agreed that investments via the CIS would generate income to assist with achieving the funding gap in the budget.  Whereupon the Cabinet,

RECOMMENDED

that the Council approve:

  i.  the Treasury Management Policy, Appendix 2 of the submitted report;

  ii.  the Treasury Management Strategy, Appendix 3 of the submitted report (subject to the amendments required to reflect the additional Disabled Facility Grant that has been awarded to the Council);

  iii.  the Prudential, Treasury Management and CIS Indicators, Appendix 4 of the submitted report; and

  iv.  the Annual Minimum Revenue Provision Policy 2016/17, Appendix 5 of the submitted report.

To consider the Treasury Management Strategy 2016-17.

(REPORT TO FOLLOW)

With the aid of a report by the Head of Resources (a copy of which is appended in the Minute Book) the Treasury Management Strategy 2016/17 was presented to the Panel. The Finance Manager introduced the report and advised Members that the report separates the Council’s main budget from the Commercial Investment Strategy (CIS).

Following a question on how quickly the Council would be able to secure a low cost loan the Panel was informed that it could happen swiftly. Members were informed that in the past the Council had acted to secure loans at favourable market rates.

In response to a suggestion to suspend the transfer of funds from reserves to the CIS in order to prevent a deficit position during 2020/21 the Panel was informed that the Cabinet did not take that position as they viewed it as crucial to make commercial investments for the resilience of the authority.