Issue - meetings

Report of the Interim Chief Finance Officer is circulated.

Cllr Fleur de Rhe-Philipe, Cabinet Member for Finance, Performance and Risk

presented a report on the Treasury Management Strategy for 2011/12 for Cabinet’s consideration and if accepted, for onward recommendation to Council on 22 February 2011.

The Strategy in particular covered the following areas:

• The Prudential and Treasury Indicators for the next three years;
• Other debt management decisions required for 2011/12 that do not feature within the indicators and
• The Annual Investment Strategy for 2011/12

Recommended to Council:

(a)       To adopt the Prudential and Treasury Indicators (Appendix A of the report presented).

(b)       To adopt the Annual Investment Strategy (Appendix B).

(c)       To delegate to the Chief Finance Officer 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.

(d)       Authorise the Chief Finance Officer to agree the restructuring of existing long term loans where savings are achievable or to enhance the long term portfolio.

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

(f)        Agree that any long term 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 Chief Finance Officer the authority to select such funds.

Reason for Decision

The proposals are required to comply with statutory guidance and reflect best practice.