Issue - meetings

Report by Carolyn Godfrey, Corporate Director

Councillor Dick Tonge presented a report which asked Cabinet to consider and recommend that the Council approve the Prudential and Treasury Indicators, together with the Treasury Management Strategy for 2015-16.

In the course of the presentation and the discussion, the issues discussed

included: the elements of the strategy that had remained unchanged from the previous year’s strategy; the changes to legislation that placed more of the balance of risk on depositors; the effect this may have on credit ratings; and that the Council is monitoring developments in the process to develop a municipal bond agency.

Resolved:

The Cabinet approve the following and recommend that the Council:

(i)          Adopt the Prudential and Treasury Indicators (Appendix A);

(ii)        Adopt the Annual Investment Strategy (Appendix B), subject to the need for future amendment resulting from any potential change in the minimum requirements for high credit quality and authorise the Associate Director, Finance, Revenues & Benefits and Pensions to amend the Strategy accordingly, unless he considers the amendment(s) to be of major significance, in which case formal Council approval will be sought at the earliest opportunity;

(iii)      Delegate to the Associate Director, Finance, Revenues & Benefits and Pensions the authority to vary the amount of borrowing and other long term liabilities within both the Treasury Indicators for the Authorised Limit and the Operational Boundary;

(iv)      Authorise the Associate Director, Finance, Revenues & Benefits and Pensions to agree the restructuring of existing long-term loans where savings are achievable or to enhance the long term portfolio;

(v)        Agree that short term cash surpluses and deficits continue to be managed through temporary loans and deposits; and

(vi)      Agree 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 Associate Director, Finance, Revenues & Benefits and Pensions the authority to select such funds.

Reason for Decision:

To enable the Council to agree a Treasury Management Strategy for 2015-16 and set Prudential Indicators that comply with statutory guidance and reflect best practice.