Issue - meetings

Report by Director for Corporate Services to provide a summary of Treasury activities in 2022-23.

Cabinet:

1)    RECOMMENDED to Council the Treasury Management Annual Report for 2022-23 is approved.

2)    NOTED the actual position on Prudential Indicators for 2022-23

The Director for Corporate Services introduced the report, the purpose of which was to provide a summary of the Treasury Activities in 2022-23 and the actual position of the Prudential Indicators in accordance with the Prudential Code.

The Director for Corporate Services advised members that for the new financial year, reports would be moving to a quarterly basis from the 6-monthly basis in line with new requirements.

The Director for Corporate Services advised members that due to the decrease in property values the Property Fund value had decreased and a fund had been set up to recognise the risk should such a reduction need to be written off to the income and expenditure account in the future.

The Portfolio Holder for Corporate Finance, Property and Resources advised the team perform well, compared to other councils with regard to the rate of return with the security of investment being the primary concern, but borrowing should be kept to a minimum to fund priorities at the present time due to high interest rates.

The Director for Corporate Services advised the following limits are set by the Council based on individual circumstances ie capital spend and affordability:

Ø  The Capital Financing Requirement, being the underlying need to borrow is £31m.

Ø  The Authorised Limit, the limit above which the council cannot borrow is £46m.

Ø  The Operational Boundary, which allows for temporary borrowing above the capital financing requirement, is £34m.

Cabinet:

1)    RECOMMENDED to Council the Treasury Management Annual Report for 2022-23 is approved.

2)    NOTED the actual position on Prudential Indicators for 2022-23

Reasons for Recommendations:

It is important that Cabinet are aware of the Council’s Treasury Management performance to ensure they can make informed decisions that protect the Council’s financial assets while taking regard of financial stability and potential returns.

The Annual Treasury Report is a requirement of the Council's reporting procedures.

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.