Decision details

The Committee considered a report by the Chief Financial Officer (circulated previously) regarding the Treasury Management Strategy Statement 2020-21.

The Head of Resources highlighted the following:

·         The Council was required to receive and approve three reports each year which included: Prudential and treasury indicators and treasury strategy (first report), Mid Year Treasury Management report (second report) and an Annual Treasury report (third report).

·         The Council’s investment priorities were security of funds first, portfolio liquidity second and then yield, (return).

·         The Capital Prudential Indicators 2020-21 to 2022-23 as detailed in paragraph 5.1.

·         The Council’s Capital Financing Requirement projections as detailed in paragraph 5.2.

·         Core funds and expected investment balances as detailed in paragraph 5.3.

·         Minimum revenue provision (MRP) policy statement as detailed in paragraph 5.5. The MRP was based on the estimated life of the assets in accordance with the regulations.

·         Current portfolio position and borrowing levels would increase as detailed in paragraph 6.1.  No difficulties were envisaged in the repayment of borrowing.

·         Treasury indicators limits to borrowing activity and the operational boundary as detailed in paragraph 6.2.

·         The majority of investment returns were short-term.

·         Appendix B would be superseded by the Commercialisation Strategy when this comes forward.

·         Economic background as detailed in Appendix C.