Issue - meetings

Report of the Director of Resources

(with the agreement of Council this item was taken before the item on the Housing Revenue Account Business Plan)

The Head of Financial Services introduced the Treasury Management Strategy Statement and Annual Investment Strategy for 2012/13 which had been scrutinised and endorsed by the Treasury Management Panel. He explained that following print and circulation of the documents, DCLG had revised the HRA self-financing figure from £27.881 million to £27.414 million, resulting in a reduction in debt of £467k. 

Upon a vote it was unanimously

RESOLVED that the attached Treasury Management Strategy Statement and Annual Investment Strategy for 2012/13 at Appendix 2 be approved including;

1. The general policy objective ‘that Council should invest prudently the surplus funds held on behalf of the community giving priority to security and liquidity’.

2. The Prudential Indicators for 2012/13 including the authorised limit as the statutory affordable borrowing limit determined under Section 3 (1) Local Government Act 2003.

3. Revisions to the Council’s lending list and parameters as shown in Appendix 2 11.2 and 11.4 are proposed in order to provide some further capacity. These proposals have been put forward after taking advice from the Council’s treasury management advisers Arlingclose and are prudent enough to ensure the credit quality of the Council’s investment portfolio remains high.

4. For 2012/13 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.

Report of the Director of Resources

RESOLVED that it be recommended to Council that the Treasury Management Strategy Statement and Annual Investment Strategy for 2012/13 at Appendix 2 be approved including;

1. The general policy objective ‘that Council should invest prudently the surplus funds held on behalf of the community giving priority to security and liquidity’.

2. The Prudential Indicators for 2012/13 including the authorised limit as the statutory affordable borrowing limit determined under Section 3 (1) Local Government Act 2003.

3. Revisions to the Council’s lending list and parameters as shown in Appendix 2 11.2 and 11.4 are proposed in order to provide some further capacity. These proposals have been put forward after taking advice from the Council’s treasury management advisers Arlingclose and are prudent enough to ensure the credit quality of the Council’s investment portfolio remains high.

4. For 2012/13 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.

The Head of Financial Services confirmed that the strategy had been scrutinised in detail, by the Treasury Management Panel, who had fully endorsed the document for approval by Cabinet and Council. 

He explained that following print and circulation of the documents, DCLG had revised the HRA self-financing figure from £27.881 million to £27.414 million, resulting in a reduction in debt of £467k.  Figures had been changed throughout the document accordingly and whilst this had not been reprinted, it had been republished on the website.

Cabinet Member Finance & Community Development stressed that the focus had been a positive one, security of assets rather than maximising returns. 

Upon a vote it was unanimously

RESOLVED that it be recommended to Council that the Treasury Management Strategy Statement and Annual Investment Strategy for 2012/13 at Appendix 2 be approved including;

1. The general policy objective ‘that Council should invest prudently the surplus funds held on behalf of the community giving priority to security and liquidity’.

2. The Prudential Indicators for 2012/13 including the authorised limit as the statutory affordable borrowing limit determined under Section 3 (1) Local Government Act 2003.

3. Revisions to the Council’s lending list and parameters as shown in Appendix 2 11.2 and 11.4 are proposed in order to provide some further capacity. These proposals have been put forward after taking advice from the Council’s treasury management advisers Arlingclose and are prudent enough to ensure the credit quality of the Council’s investment portfolio remains high.

4. For 2012/13 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.