Decision details

Approve to recommend to Council

The Chief Finance Officer introduced the report which had been circulated with the budget papers.  He explained that the Council had a responsibility to set out its Treasury Management Strategy Statement for borrowing and to prepare an Annual Investment Strategy for council approval prior to the start of a new financial year.

The strategy had been approved by the Treasury Management Panel at its meeting on the 27 January 2011.

The strategy included prudential indicators based on the budget decisions that had been made today, as well as details of next years loans to the Gloucestershire Airport, Everyman Theatre and Cheltenham Borough Homes.

Upon a vote it was unanimously

RESOLVED that the Treasury Management Strategy Statement and Annual Investment Strategy for 2011/12 at Appendix 2 be approved including; 

• The general policy objective ‘that Council should invest prudently the surplus funds held on behalf of the community giving priority to security and liquidity’;
• That the Prudential Indicators for 2011/12 including the authorised limit as the statutory affordable borrowing limit determined under Section 3 (1) Local Government Act 2003 be approved;
• Additions to the Council’s lending list are proposed in order to provide some further capacity. These proposals have been put forward after taken advice from the Council’s treasury management advisers and are prudent enough to ensure the credit quality of the Council’s investment portfolio remains high;
• To increase the time period of investing up to two years with counterparties noted in the recommended lending list;
• For 2011/12 in calculating the Minimum Revenue Provision (MRP), the Council will apply Option 1 in respect of supported capital expenditure and Option 3 in respect of unsupported capital expenditure as per section 21 in Appendix 3.

Treasury Management Panel