Issue - meetings

The Portfolio Holder for Corporate Finance and Resources to submit a report outlining the Council’s prudential indicators for 2020/21 – 2022/23 and setting out the expected treasury operations for this period.

(1)  Cabinet RECOMMENDED to Council the prudential indicators and limits be adopted and approved;

(2)  Cabinet RECOMMENDED to Council the Treasury Management Strategy and treasury management prudential indicators be adopted and approved;

(3)  Cabinet RECOMMENDED to Council the Minimum Revenue Provision (MRP) Statement, which set out the Council’s policy on MRP be approved;

(4)  Cabinet NOTED the linkages to the Capital Strategy due to the integral nature of how the Council manages its treasury finances to support capital development.

Councillor Ronnie de Burle, Portfolio Holder for Corporate Finance and Resources and the Director for Corporate Services introduced the report, which outlined the Council’s prudential indicators for 2020/21-2022/23 and set out the expected treasury operations for this period.

The inclusion of sustainable and ethical investments and multi-asset funds in the investment strategy for 2020/21 was highlighted.

During discussion the following points were noted:

·         The Council had an excellent record of managing its investment and the good work undertaken by the Corporate Services Manager was noted.

·         In relation to the Council’s commercial agenda and prudential borrowing, a commercial investment business plan together with an updated treasury management strategy would be required.  The two were linked.  This would be discussed further at Cabinet in March.

·         The Council’s commercial agenda should not be progressed in isolation but should be closely related to its aspiration to provide excellent social housing.

DECISIONS (KEY)

(1)  Cabinet RECOMMENDED to Council the prudential indicators and limits be adopted and approved;

(2)  Cabinet RECOMMENDED to Council the Treasury Management Strategy and treasury management prudential indicators be adopted and approved;

(3)  Cabinet RECOMMENDED to Council the Minimum Revenue Provision (MRP) Statement, which set out the Council’s policy on MRP be approved;

(4)  Cabinet NOTED the linkages to the Capital Strategy due to the integral nature of how the Council manages its treasury finances to support capital development.

Reason for the decision

The Treasury Management Code requires the Council to approve annually a Treasury Management Strategy and to provide a mid-year update on Treasury Management activities to the Council. It is a requirement that Treasury Management is scrutinised during the year 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 a minimum number of prudential indicators.