(NOTE: A copy of the report that was considered by the Strategy and Resources Committee held on 7 February 2022 is attached).

 Council considered a report by the Director of Resources regarding the Treasury Management Strategy Statement 2022/23 (circulated previously).

The Director of Resources highlighted the following:

·       Capital Prudential Indicators for 2022/23 and the impact of the capital expenditure and financing. In 2021/22, the net financing need for the year was estimated at £18.065m.

·       The Council’s Capital Financing Requirement was a key indicator. The projected Capital Financing Requirement (CFR) for 2024/25 was £35.4m.

·       In the current financial environment it was prudent to use internal borrowing from reserves and cash balances to fund the CFR to offset some of the borrowing need. A further £12m of external borrowing may be required in 2022/23 to support the approved capital programme, taking the total projected external borrowing to £22.5m for 2022/23.

·       From October 2021 the Council entered a vehicle leasing programme with SFS and currently had circa £1.2m of finance leases within the CFR.

·       Two key Treasury Indicators: the operational boundary and authorised borrowing limit. Borrowing interest rates as detailed on page 238 of the report.

·       Investment Strategy – there were no proposed changes to the investments with investment limits as detailed in page 245 and Appendix A of the report

Report by the Chief Financial Officer to Strategy and Resources Committee on 7^th February 2022 (attached), and

(a)  Minute Extract of Strategy and Resources Committee on 7^th February 2022 (attached).

(b)  Appendices A-C to the report (attached).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Treasury Management Strategy Statement for 2022/23.

The Director of Resources and Deputy Chief Executive highlighted the following:

·       Capital Prudential Indicators for 2022/23 and the impact of the capital expenditure and financing. In 2021/22, the net financing need for the year was estimated at £18.065m.

·       The Council’s Capital Financing Requirement was a key indicator. The projected Capital Financing Requirement (CFR) for 2024/25 was £35.4m.

·       In the current financial environment it was prudent to use internal borrowing from reserves and cash balances to fund the CFR to offset some of the borrowing need. A further £12m of external borrowing may be required in 2022/23 to support the approved capital programme, taking the total projected external borrowing to £22.5m for 2022/23.

·       From October 2021 the Council entered a vehicle leasing programme with SFS and currently had circa £1.2m of finance leases within the CFR.

·       Two key Treasury Indicators: the operational boundary and authorised borrowing limit. Borrowing interest rates as detailed in the report.

·       Investment Strategy – there were no proposed changes to the investments.

·       Financial limits as detailed in the report and Appendix A.

RESOLVED, that the decisions and recommendations of the Strategy and Resources Committee be endorsed.

Report by Director of Resources and Deputy Chief Executive (attached).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Treasury Management Strategy Statement for 2022/23.

The Head of Governance highlighted the following:

·       Capital Prudential Indicators for 2022/23 and the impact of the capital expenditure and financing. In 2021/22, the net financing need for the year was estimated at £18.065m.

·       The Council’s Capital Financing Requirement was a key indicator.  The projected Capital Financing Requirement (CFR) for 2024/25 was £35.4m.

·       In the current financial environment it was prudent to use internal borrowing from reserves and cash balances to fund the CFR to offset some of the borrowing need.  A further £12m of external borrowing may be required in 2022/23 to support the approved capital programme, taking the total projected external borrowing to £22.5m for 2022/23.

·       From October 2021 the Council entered a vehicle leasing programme with SFS and currently had circa £1.2m of finance leases within the CFR.

·       Two key Treasury Indicators: the operational boundary and authorised borrowing limit. Borrowing interest rates as detailed on page 306 of the report.

·       Investment Strategy – there were no proposed changes to the investments with investment limits as detailed in page 315 and Appendix A of the report.

In response to a question, the Head of Governance advised the following:

·       Financing of the Capital Strategy was over a 10 year period.  The CFR was increasing between 2021/22 and 2024/25.

RECOMMENDED that the Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement and Annual Investment Statement 2022/2023, including the Treasury Management and Prudential Indicators for 2022/23 to 2024/25, be approved.