Issue - meetings

Report of the Cabinet Member Finance

Councillors C. Hay, Smith, Driver and Williams returned to the Chamber and the Mayor resumed the Chair.

The Cabinet Member Finance gave a brief introduction to this item.  The prudential indicators at Appendix 2 continued to reflect the capital expenditure and plans and were designed to assist member’s overview.  The updated lending list at Appendix 3 set out the institutions with whom the council would invest with and these were only institutions with a high/long rating and for a maximum of 12 months.  This was not a static document and would be reviewed alongside changing circumstances. 

There were no questions or comments.

Upon a vote it was unanimously

RESOLVED that the Treasury Management Strategy Statement and Annual Investment Strategy for 2013/14 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.      That the Prudential Indicators for 2013/14 including the authorised limit as the statutory affordable borrowing limit determined under Section 3 (1) Local Government Act 2003 be approved.

3.      Revisions to the Council’s lending list and parameters as shown in Appendix 3 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 Sector and are prudent enough to ensure the credit quality of the Council’s investment portfolio remains high.

4.      For 2013/14 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 Resources.

RESOLVED that it be recommended to Council that the Treasury Management Strategy Statement and Annual Investment Strategy for 2013/14 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. That the Prudential Indicators for 2013/14 including the authorised limit as the statutory affordable borrowing limit determined under Section 3 (1) Local Government Act 2003 be approved.

3. Revisions to the Council’s lending list and parameters as shown in Appendix 3 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 Sector and are prudent enough to ensure the credit quality of the Council’s investment portfolio remains high.

4. For 2013/14 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 Cabinet Member Finance introduced the report which had been endorsed by the Treasury Management Panel. He confirmed that the Treasury Management Strategy Statement and Annual Investment Strategy 2013/14 were well within the Prudential Indicators which the Council was required to conform with under the Local Government Act 2003.

With regard to investment policy the Cabinet Member confirmed that the priority was security and to this end there had been revisions to the lending list in Appendix 3. The Council was only lending to those institutions with high long-term ratings and for a maximum duration of between 3 and 12 months. He emphasised that the list was not set in stone, but would be reviewed with Sector, the Council’s treasury consultants, and officers during the year according to changes in financial markets.

RESOLVED that it be recommended to Council that the Treasury Management Strategy Statement and Annual Investment Strategy for 2013/14 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. That the Prudential Indicators for 2013/14 including the authorised limit as the statutory affordable borrowing limit determined under Section 3 (1) Local Government Act 2003 be approved.

3. Revisions to the Council’s lending list and parameters as shown in Appendix 3 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 Sector and are prudent enough to ensure the credit quality of the Council’s investment portfolio remains high.

4. For 2013/14 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.