Issue - meetings

Treasury Management Strategy Statement 2019/20

 

 

Meeting: 25/02/2019 - Council (Item 94)

94 Treasury Management Strategy Statement 2019/20 pdf icon PDF 121 KB

(NOTE: A copy of the report that was considered by the Executive on 4th February 2019 is attached).

Meeting: 04/02/2019 - Executive (Item 104)

104 Treasury Management Strategy Statement 2019/20 pdf icon PDF 196 KB

Report by Chief Financial Officer (attached).

Minutes:

The Executive considered a report by the Chief Financial Officer (circulated previously), the options and/or alternatives and other relevant facts set out in the report regarding the Treasury Management Strategy Statement for 2019/20.

 

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).

·         Proposed changes to the Treasury Management Strategy for 2019/20 as detailed in paragraph 5.1 of the report.

·         The Council had not engaged in any material commercial investments or non-treasury investments.

·         Capital expenditure and net financing need of capital expenditure for 2019/20.

·         The Council’s underlying need to borrowing as detailed in paragraph 6.2 of the report.

·         Borrowing requirements as detailed in paragraph 7 of the report.  The underlying need to borrow was increasing in 2019/20 year.

·         Investment and borrowing rates.  Borrowing rates would continue to be reviewed to avoid incurring higher borrowing costs in the future.  It was more cost effective to borrowing internally.  Investments were only made on a short term basis. 

·         The criteria for risk management was largely unchanged from last year.

·         The Council would adopt a low risk, immaterial, approach to non-treasury (commercial) investments in line with the investment categories and authorised limits set out in Appendix 2.

 

RECOMMENDED

 

That the Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement and Annual Investment Statement 2019/2020, including the Treasury Management and Prudential Indicators for 2019/20 to 2021/22, be approved.

 

REASONS FOR RECOMMENDATIONS

 

(a)

The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (SI 2003/3146) requires the Council to have regard to the Treasury Management Code.

 

(b)

Under section 3(5) of the Local Government Act 2003 the Council is required to have regard to the Prudential Code when setting limits to the level of its affordable borrowing.

 

(c)

This Council is also required under the Code to give prior scrutiny to the treasury management reports by the Overview and Scrutiny Committee before they are reported to the full Council.