Issue - meetings

Report by Corporate Director Alistair Cunningham.

Cllr Philip Whitehead presented the report, which recommended that Council approve the Prudential and Treasury Indicators, together with the Treasury Management Strategy for 2019/20. 

The report included information about:

·       Prudential and Treasury Indicators for the next three years

·       Debt management decisions required for 2019/2020 that do not feature within the Prudential or Treasury Indicators (paragraphs 71 to 76)

·       Minimum Revenue Provision Policy 2019/2020

·       Annual Investment Strategy for 2019/2020, with the following changes from 2018/2019:

o   The ability to lend to selected property funds (CCLA)

o   Increasing the monetary limits on certain counterparties

o   Adjusting the high credit quality criteria

In response to a comment from the Leader about the balance of risks to economic growth in the UK, Cllr Whitehead encouraged all Councillors to read the treasury management reports as they contained excellent insights into the UK finances.

Resolved:    To recommend that Council

1.    Adopts the Minimum Revenue Provision Policy (paragraph 32 – 34)

2.    Adopts the Prudential and Treasury Indicators (paragraphs 24 – 31, 40 – 49 and Appendix A)

3.    Adopts the Annual Investment Strategy (paragraph 77 onwards), including the ratification of the adjustment of the minimum requirement for high credit quality, the limits for certain counterparties and the ability to invest in the CCLA property fund

4.    Delegates to the Director of Finance and Procurement the authority to vary the amount of borrowing and other long-term liabilities within the Treasury Indicators for the Authorised Limit and the Operational Boundary

5.    Authorises the Director of Finance and Procurement to agree the restructuring of existing long-term loans where savings are achievable or to enhance the long-term portfolio

6.    Agrees that short term cash surpluses and deficits continue to be managed through temporary loans and deposits

7.    Agrees that any surplus cash balances not required to cover borrowing are placed in authorised money-market funds, particularly where this is more cost effective than short term deposits and delegate to the Interim Director of Finance and Procurement the authority to select such funds

Reason for Decision:

To enable the Council to agree a Treasury Management Strategy for 2019/2020 and set Prudential Indicators that comply with statutory guidance and reflect best practice.