Issue - meetings

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report and explained that the Treasury Management and Annual Investment Strategy 2015/16 had been scrutinised by the Treasury Management Panel to whom he was grateful. He said that the Council had operated in accordance with the Prudential Indicators and would continue to do so. The priorities for the Council’s investments had been security and liquidity and this is represented a prudent approach in the current financial climate. In terms of the annual investment strategy the Council operated a very sophisticated system to determine the creditworthiness of investment counterparties. The Cabinet Member hoped that this strategy and general approach of investment gave the Council the confidence and security it needed.

Upon a vote it was unanimously

RESOLVED that the Treasury Management Strategy Statement and Annual Investment Strategy for 2015/16 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 2015/16 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 Capita Asset Services and are prudent enough to ensure the credit quality of the Council’s investment portfolio remains high.

4.    For 2015/16 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 Cabinet Member Finance

RESOLVED THAT it be recommended to Council that the Treasury Management Strategy Statement and Annual Investment Strategy for 2015/16 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 2015/16 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 Capita Asset Services and are prudent enough to ensure the credit quality of the Council’s investment portfolio remains high.

4.    For 2015/16 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 Leader introduced the report which 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. He stated that the priority remained security and liquidity of Council investments and highlighted that the Council was well within its Prudential Indicators. He paid tribute to the sound financial management by officers and stated that at this stage any variance in interest rates was not assumed.

RESOLVED THAT it be recommended to Council that the Treasury Management Strategy Statement and Annual Investment Strategy for 2015/16 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 2015/16 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 Capita Asset Services and are prudent enough to ensure the credit quality of the Council’s investment portfolio remains high.

4.    For 2015/16 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.