Issue - meetings

Report by Alistair Cunningham, Corporate Director.

At the invitation of the Chairman, the Cabinet Member for Finance, Cllr

Philip Whitehead, presented a report which sought approval for the Prudential

and Treasury Indicators for the next three years, together with the Treasury Management Strategy for 2019/2020.

Cllr Whitehead explained that the strategy had been thoroughly examined by the Financial Planning Task Group, Overview & Scrutiny Management Committee and Cabinet and that the level of borrowing was well below the limits permitted.

Councillor Philip Whitehead proposed, duly seconded by Cllr Laura Mayes, that the recommendations in the report be adopted.

Group Leaders then commented on the proposals as follows:

Cllr John Thomson considered that the proposed Strategy was very positive and transparent.  He also drew attention to the amount of capital investment proposed.

Cllr Ian Thorn considered that overall the report was a very helpful document.

Cllr Christopher Devine referred to the operational boundary which was a key management tool for in-year monitoring.  He considered that borrowing should not be beyond the level which could be afforded to be paid back and suggested that the Audit Committee be requested to examine this.

Cllr Ricky Rogers supported the proposals.

The Chairman then invited comments in debate.

Cllr Jon Hubbard requested a breakdown of the HRA (excluding borrowing) as set out in paragraph 26 of the report and Cllr Whitehead promised to provide an answer.

The Motion was then put to the vote.

Resolved:

That Council:

a)            Adopt the Minimum Revenue Provision Policy (paragraph 32 – 34);

b)           Adopt the Prudential and Treasury Indicators (paragraphs 24 – 31, 40 – 49 and Appendix A);

c)            Adopt the Annual Investment Strategy (paragraph 77 onwards), including the ratification of the adjustment of the minimum requirement for high credit quality, the limits for certain counterparties and the ability to invest in the CCLA property fund;

d)           Delegate to the Director of Finance and Procurement 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 Director of Finance and Procurement 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;

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 Interim Director of Finance and Procurement the authority to select such funds.

Admin Note: A record of the vote is appended to these minutes.