10 Treasury Management Strategy 2013/14
Report of the Service Director - Finance
Councillor John Brady, Cabinet Member for Finance, Performance and Risk, presented a report which presented the Treasury Management Strategy for 2013-14 including:
a) The Prudential and Treasury Indicators (Prls and Trls) for the next three years;
b) Other debt management decisions required for 2013-14 that do not feature within the Prls or Trls; and
c) The Annual Investment Strategy for 2013-14.
To recommend that the Council:
a) adopt the Prudential and Treasury Indicators (Appendix A) and approve the change in Prudential Indicator 4, which now compares Gross (previously Net, of investments) Debt with the Capital Financing Requirement in accordance with an amendment issued by CIPFA in November 2012;
b) adopt the Annual Investment Strategy (Appendix B);
c) delegate to the Service Director, Finance 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 Service Director, Finance 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; and
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 Service Director, Finance the authority to select such funds.
Reasons For Proposals
To enable the Council to agree a Treasury Management Strategy for 2013-14 and set Prudential Indicators that comply with statutory guidance and reflect best practice.