Issue - meetings

Report by Carolyn Godfrey, Corporate Director

With the Chairman’s permission, Councillor Dick Tonge, Cabinet member for Finance, presented the proposed Treasury Management Strategy for 2017/18 as recommended by Cabinet at its meeting on 7 February 2017 for Council’s approval. In his presentation, Councillor Tonge highlighted the small number of changes to be made to the existing Strategy.

There being no further debate, the meeting;

Resolved

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

b)   To adopt the Annual Investment Strategy (Appendix B) of the report presented;

c)    To delegate to the Associate 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)   To authorise the Associate Director, Finance to agree the restructuring of existing long-term loans where savings are achievable or to enhance the long term portfolio;

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

f)     T 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 the authority to select such funds.

Report by Carolyn Godfrey, Corporate Director

With the Chairman’s permission, Councillor Dick Tonge, Cabinet member for Finance, presented the proposed Treasury Management Strategy for 2016/17 as recommended by Cabinet at its meeting on 9 February 2016 for Council’s approval. In his presentation, Councillor Tonge highlighted the small number of changes to be made to the existing Strategy.

There being no further debate, the meeting;

Resolved:

a)    To adopt the Prudential and Treasury Indicators (Appendix A) and approve the proposed changes to the additional maturity indicator and Upper Limits on the Maturity Structure of Borrowing, Trl 5 (paragraphs 28 to 31 of Appendix A);

b)   To adopt the Annual Investment Strategy (Appendix B), including the ratification of the removal of the minimum requirement for high credit quality relating to support ratings (previously in paragraph 28), following the changes to Fitch ratings implemented by them in respect of “bail-in”, as approved, via delegated authority to the Associate Director, Finance, Revenues & Benefits and Pensions;

c)    To 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;

d)   To 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;

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

f)     To 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.

 Report by Carolyn Godfrey, Corporate Director

 Councillor Dick Tonge, Cabinet Member for Finance, presented a report which asked Cabinet to consider and recommend that Council approve the Prudential and Treasury Indicators, together with the Treasury Management Strategy for 2016-17. In his presentation, Cllr Tonge highlighted the small number of changes proposed to be made from the previously approved strategy and mentioned the changes made during the year by Cabinet and now incorporated into the strategy.

Resolved

To recommend to Council that it:

a)         adopt the Prudential and Treasury Indicators (Appendix A) and approve the proposed changes to the additional maturity indicator and Upper Limits on the Maturity Structure of Borrowing, Trl 5 (paragraphs 28 to 31 of Appendix A);

b)        adopt the Annual Investment Strategy (Appendix B), including the ratification of the removal of the minimum requirement for high credit quality relating to support ratings (previously in paragraph 28), following the changes to Fitch ratings implemented by them in respect of “bail-in”, as approved, via delegated authority to the Associate Director, Finance, Revenues & Benefits and Pensions;

c)         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;

d)        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;

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

f)          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 2016-17 and set Prudential Indicators that comply with statutory guidance and reflect best practice.