Decision details

Treasury Management Strategy 2018-2019

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

To approve the 2018-2019 Treasury Management Strategy, Annual Investment Strategy, Authorised Borrowing Limit, Prudential Indicators and MRP Policy for Full Council to consider and approve.

Decision:

That Cabinet recommends that Council approves:

1. The authorised borrowing limit for 2018-2019 as required under Section 3(1) of the Local Government Act 2003 be set at £1,087.5 million (PI 3, Appendix 3 to this report).

2. The Treasury Management Strategy Statement 2018-2019 as set out in Appendix 1 to this report.

3. The Annual Investment Strategy 2018-2019 as set out in Appendix 2 to this report.

4. The Prudential and Treasury Management Indicators as set out in Appendix 3 to this report.

5. The Annual Minimum Revenue Provision (MRP) Statement setting out the method used to calculate MRP for 2018-2019 onwards as set out in Appendix 4 to this report.

6. The Treasury Management Policy Statement and Treasury Management Practices as set out in Appendix 5 to this report.

7. That authority continues to be delegated to the Director of Finance to amend the Treasury Management Policy and Practices and any corresponding changes required to the Treasury Management Strategy, the Prudential and Treasury Management Indicators, the Investment Strategy and the Annual MRP Statement to ensure they remain aligned. Any amendments will be reported to the Cabinet Member for Resources and Cabinet (Resources) Panel as appropriate.

 

That Cabinet recommends that Council notes:

1. That the MRP charge for the financial year 2018-2019 will be £7.8 million increasing to £14.7 million in 2019-2020 (paragraph 2.16).

2. That Cabinet (Resources) Panel and Council will receive regular Treasury Management reports during 2018-2019 on performance against the key targets and Prudential and Treasury Management Indicators in the Treasury Management Strategy and Investment Strategy as set out in paragraph 2.14 and Appendices 2 and 3 to this report.

3. That the detailed guidance notes for the new Code of Practice on Treasury Management and the Prudential Code are still to be published by CIPFA and therefore the current statements are based on the Council’s interpretation of these Codes.

4. Revised guidance on Local Government Investments and Minimum Revenue Provision was issued by the Ministry of Housing, Communities and Local Government on 2 February 2018. The new guidance is currently being reviewed by the Director of Finance and updates will be provided to Councillors in due course.

 

1.  That it be noted that the financial information included in this report is based on the ‘Capital programme 2017-2018 to 2021-2022 quarter three review and 2018-2019 to 2022-2023 budget strategy’ report also on the agenda for this meeting. The capital report is subject a report being separately approved by Cabinet also at this meeting. Therefore, if this approval is not obtained, a revised version of this report will be presented to Council on 7 March 2018.

Report author: Sarah Hassell

Publication date: 21/02/2018

Date of decision: 20/02/2018

Decided at meeting: 20/02/2018 - Cabinet

Accompanying Documents: