Issue - meetings

Treasury Management Strategy

Meeting: 04/02/2020 - Cabinet (Item 23)

23 Treasury Management Strategy

Report by Chief Executive Officers Alistair Cunningham and Terence Herbert


Supporting documents:


Cllr Simon Jacobs, Cabinet Member for Finance and Procurement presented the report, which recommended that Council approve the Prudential and Treasury Indicators, together with the Treasury Management Strategy for 2020/21. 


The report included information about:


·       Prudential and Treasury Indicators for the next three years

·       Debt management decisions required for 2020/2021 that do not feature within the Prudential or Treasury Indicators (paragraphs 72 to 76)

·       Minimum Revenue Provision Policy 2020/2021

·       Annual Investment Strategy for 2020/2021


In response to a comment from Cllr Ian Thorn about loans from the Public Loans Board, Cllr Jacobs confirmed that borrowing risks are analysed and monitored on a regular basis and that the interest rates charged were for the term of the loan.


In response to a question from Cllr Pauline Church about investments in environmentally responsible assets, Cllr Jacobs confirmed that the Council received specialist advice from treasury advisors for the day to day investments made with banks and other investment organisations.



Resolved:    To recommend that Council


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


2.    Adopts the Prudential and Treasury Indicators (paragraphs 24 – 31, 40 – 48 and Appendix A of the report)


3.    Adopts the Annual Investment Strategy (paragraph 77 onwards of the report)


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, deposits and money market funds


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


8.    Adopts the Third Party Loans Policy (paragraph 93 and Appendix F of the report)


Reason for Decision:


To enable the Council to agree a Treasury Management Strategy for 2020/2021 and set Prudential Indicators that comply with statutory guidance and reflect best practice.