Issue - meetings

Report of the Chief Executive

The Leader introduced the Treasury Management Strategy for 2022/23. The report included information about:

·         Prudential and Treasury Indicators for the next three years

·         Debt management decisions required for 2022/2023 that do not feature within the Prudential or Treasury Indicators (paragraphs 59 to 63)

·         Minimum Revenue Provision Policy 2022/2023; and

·         Annual Investment Strategy for 2022/2023

Cllr Pip Ridout, Chair of the Financial Planning Task Group confirmed that the Task Group would be considering the report at its meeting on 11 February 2022 prior to Full Council on 15 February 2022. 

In response to comments from Cllr Gavin Grant about the Council maintaining an under-borrowed position, and direction of travel for the use of environmental, social and governance (ESG) investments, the Leader and officers explained:

·         That capital borrowing need had not been fully funded with loan debt as cash supporting Council reserves, balances and cash flow had been used as a temporary measure. Interest rates continued to be monitored and fixed rate funding would be drawn whilst interest rates were lower.

·         ESG investments may be utilised by the Council in the future, following full evaluation of risk management, and maintaining critical principles of security, liquidity and yield.

Resolved:

The Cabinet is requested to recommend that the Council:

a)    Adopt the Minimum Revenue Provision Policy (paragraph 25 – 27)

b)    Adopt the Prudential and Treasury Indicators (paragraphs 19 – 24, 36 – 42 and Appendix A)

c)    Adopt the Annual Investment Strategy (paragraph 66 onwards).

d)    Delegate to the Corporate Director of Resources & Deputy Chief Executive (S151 Officer) 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

e)    Authorise the Corporate Director of Resources & Deputy Chief Executive (S151 Officer) to agree the restructuring of existing long-term loans where savings are achievable or to enhance the long-term portfolio

f)     Agree that short term cash surpluses and deficits continue to be managed through temporary loans, deposits and money market funds

g)    Agree 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 Corporate Director of Resources & Deputy Chief Executive (S151 Officer) the authority to select such funds

h)    Approve the use of Property Funds (paragraph 73 - 75)

Reason for Decision:

To enable the Council to agree a Treasury Management Strategy for 2022/23 and set Prudential Indicators that comply with statutory guidance and reflect best practice.