Issue - meetings

The Portfolio Holder for Corporate Finance and Resources to provide a report to advise that:

a)    The Annual Treasury Report is a requirement of the Council's reporting procedures and provides a summary of the Treasury activities in 2018-19. The report also covers the actual position on the Prudential Indicators in accordance with the Prudential Code.

b)    The report meets the requirements of both the CIPFA Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance in Local Authorities. The Council is required to comply with both codes through Regulations issued under the Local Government Act 2003.

Cabinet RECOMMENDED TO COUNCIL TO APPROVE the Treasury Management Annual Report including the Prudential Indicators for 2018-19.

Councillor Ronnie de Burle, Portfolio Holder for Corporate Finance and Resources, introduced the report with the purpose to present the actual position of the Prudential Indicators in accordance with the Prudential Code and provide a summary of the Treasury activities in 2018-19 prior to their approval by the Council.

During discussion, the following points were noted;

During 2018-19 the Council complied with the legislation and regulatory requirements which limit the levels of risk associated with its Treasury Management activities.

The level of investments have been higher than predicted due to an underspend on the capital programme in both 2017-18 and 2018-19 and a higher level of reserves as a result.

The ratio of the financing costs to the net revenue stream has reduced in respect of the General Fund and increased marginally in respect of HRA due to a reduction in income. On the general fund there are no financing costs (i.e. no debt) therefore the change between years is due to increased investment returns.

DECISION (NON KEY)

Cabinet RECOMMENDED TO COUNCIL TO APPROVE the Treasury Management Annual Report including the Prudential Indicators for 2018-19.

Reasons:-

The Treasury Management Code requires the Council to provide an annual report on Treasury Management activities to the Council. Is a requirement that these be scrutinised prior to their submission which falls within Cabinet’s remit.

To facilitate the decision making process and support capital investment decisions the Prudential Code requires the Council to agree and monitor a minimum number of prudential indicators.