Issue - meetings

Report of the Service Director: Finance and Commercialisation providing an update on the Treasury Management Strategy and Prudential Limits that were approved by Council in February 2017.

The report of the Service Director Finance and Commercialisation seeking approval of the Treasury Management Strategy and Prudential Limits Mid Year Review 2017/18. 

RESOLVED:

(i)  To note the current and forecast position with regards to these indicators and approve any changes;

(ii)  To note that the continued proactive approach to Treasury Management has led to reductions in borrowing costs and safeguarded investment income during the year;

(iii)  To note the cost implication of the Capital Programme on the Authority as detailed in Table 5;

(iv)  To note the proposed changes to the Prudential and Treasury Management Codes, in particular the inclusion of non-treasury investments such as commercial investments in properties in the definition of “investments” as well as loans made or shares brought for service purposes, as detailed in paragraphs 13 to 17 below;

(v)  Continue to delegate authority to the Service Director – Finance & Commercialisation, following consultation with the Cabinet Member for Finance to approve any changes to the Prudential Indicators or borrowing limits that will aid good treasury management.  For example increase the percentage for variable rate borrowing to take advantage of the depressed market for short term rates.  Any amendments will be reported as part of quarterly financial and performance monitoring and in revisions to this strategy.

Report of the Service Director: Finance and Commercialisation providing an update on the Treasury Management Strategy and Prudential Limits that were approved by Council in February 2017.

The Committee considered the report of the Service Director Finance and Commercialisation providing an overview of the Treasury Management activities and performance for 2017/18 against the approved Prudential Indicators for External Debt and Treasury Management and to approve any changes as a result of activity to date and updates to the capital programme.

The Committee specifically referenced paragraphs 10-17 of the report and noted that the DCLG were currently undertaking a consultation which potentially could have far reaching consequences, therefore it was recommended that a report be submitted to the February meeting assessing the impact of the consultation outcome.

RESOLVED:

(i)  That the current and forecast position with regards to these indicators be noted and any changes endorsed;

(ii)  That the continued proactive approach to Treasury Management had led to reductions in borrowing costs and safeguarded investment income during the year be noted;

(iii)  That the cost implication of the Capital Programme on the Authority as detailed in table 5 of the report be noted;

(iv)  That the proposed changes to the Prudential and Treasury Management Codes, in particular the inclusion of non-treasury investments such as commercial investments in properties in the definition of “investments” as well as loans made or shares brought for service purposes, as detailed in paragraphs 13-17 of the report be noted; and

(v)  That a report be submitted to the February meeting detailing any impact arising from the outcome of the DCLG consultation.