Issue - meetings

Report by Michael Hudson, Associate Director – Finance

Councillor Dick Tonge, presented a report which set out the proposed Treasury Management Strategy for 2014-15 for approval by Cabinet and onward recommendation to Council.

The report set out:

a) the Prudential and Treasury Indicators (PrIs and TrIs) for the next three years;

b) other debt management decisions required for 2014-15 that do not feature

within the PrIs or TrIs, as shown in paragraphs 3.11 to 3.20;

c) the Annual Investment Strategy for 2014-15 (only one change from 2013-14 as detailed in paragraph 3.23 of the report); and

d) the updated Treasury Management Practices.

Cllr Tonge explained that whereas he was aware that some authorities had chosen to sell on their Icelandic bank debts, this Council had not given we were classified as preferred creditors.

Resolved:

That Cabinet recommend to Council to:

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

b)        adopt the Annual Investment Strategy, including the proposed increase in the lending limit associated with Government backed UK banks (Appendix B of the report presented);

c)        adopt the updated Treasury Management Practices (TMPs) (Appendix C of the report presented);

d)        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;

e)        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;

f)          agree that short term cash surpluses and deficits continue to be managed through temporary loans and deposits; and

g)        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 2014/15 and set Prudential Indicators that comply with statutory guidance and reflect best practice.