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Agenda item

Treasury Management Strategy 2021/20222

A report from the Chief Executive, Terence Herbert.


The Chairman invited the Cabinet Member for Finance, Procurement and Commercial Investment, Cllr Pauline Church to present a report on the Treasury Management Strategy 2021/2022.


Cllr Church stated that the report was recommended to Council by Cabinet at the meeting on 2 February 2021. The report set out a prudent approach to treasury management, taking into account:


·       Liquidity

·       Risk Profile and credit worthiness of counter parties, and

·       Yield


Cllr Church explained that the Council was required to operate a balanced budget and part of the treasury management operation was to ensure that cash flow was adequately planned. Surplus monies were invested within the Council’s risks appetite as set out in the strategy.


The second main function of the treasury management strategy was the funding of the Council’s capital plans. Capital plans provided a guide to the borrowing needs of the Council, the long-term cash flow planning ensured spending obligations could be met. 


The treasury management function was critical to the Council as the balance of debt and investment operation ensured liquidity and the ability to meet spending commitments.


Cllr Church passed on thanks to officer Debbie Price for all her work on the treasury management strategy.


Cllr Church proposed a motion to accept the recommendations in the report as detailed on page 68 of the agenda summons, which was seconded by Cllr Philip Whitehead.


Comments were then made on the proposals by Group Leaders as follows:


Cllr Philip Whitehead, Leader of the Council, commended the strategy and stated he felt that the report was of a very high quality.


Cllr Ian Thorn, Leader of the Liberal Democrats, asked a question regarding the issue of spend on major projects and investments and the ongoing issue of the gap between the budget in terms of capital investment and the turnout.


Cllr Ernie Clark, Independent Group Leader, thought the report was acceptable however was uncertain regarding proposal g.


Cllr Ricky Rogers, Labour Group Leader, stated that the report was very thorough and he was happy to support the strategy. 


There were no comments in debate from Members.


Cllr Church responded to Cllr Thorn’s question, reassuring him that the team were focusing on profiling and the spend as per the planned project. It was,




That Full Council:


a)    Adopt the Minimum Revenue Provision Policy (paragraph 31 – 33)


b)    Adopt the Prudential and Treasury Indicators (paragraphs 24 – 30, 43 – 49 and Appendix A)


c)    Adopt the Annual Investment Strategy (paragraph 82 onwards).


d)    Delegate to the Interim Corporate Director of Resources 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 Interim Corporate Director of Resources 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, deposits and money market funds


g)    Agree that any surplus cash balances not required to cover borrowing are placed in the most appropriate specified or non-specified investments, particularly where this is more cost effective than short term deposits; and delegate to the Interim Corporate Director of Resources the authority to select such funds


h)    Adopt the Third Party Loans Policy (paragraph 97 and Appendix F)


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