Decision details

Treasury Management Strategy 2019-2020

Decision Maker: Cabinet

Decision status: Recommmend Forward to Council

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

To approve the Treasury Management Strategy 2019-2020.

Decision:

Council is recommended to:

1. Approve the authorised borrowing limit for 2019-2020 to support the capital strategy as required under Section 3(1) of the Local Government Act 2003 be set at £1,141.5 million (PI3, Appendix 3 to this report); the forecast borrowing is below the authorised borrowing limit.

2. Approve the Treasury Management Strategy Statement 2019-2020 as set out in Appendix 1 to this report.

3. Approve the Annual Investment Strategy 2019-2020 as set out in Appendix 2 to this report.

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

5. Approve the Annual Minimum Revenue Provision (MRP) Statement setting out the method used to calculate MRP for 2019-2020 as set out in Appendix 4 to this report.

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

7. Approve the continuation of delegated authority 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.

8. Approve the removal of the Local Prudential Indicator LPI 2 HRA limit on indebtedness from the 2018-2019 Prudential and Treasury Management Indicators approved by Council on 7 March 2018.

9. Note that the MRP charge for the financial year 2019-2020 will be £15.4 million; it is forecast to increase to £18.2 million in 2020-2021 (paragraph 2.14 of the report).

10. Note that Cabinet or Cabinet (Resources) Panel and Council will receive regular Treasury Management reports during 2019-2020 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 2.12 and Appendices 2 and 3 to this report.

11. Note that the statements for 2019-2020 reflect the new Code of Practice on Treasury Management and the Prudential Code and also the revised guidance on Local Government Investments issued by the Ministry of Housing, Communities & Local Government.

 

Cabinet resolved:

1.     That it be noted that the financial information included in this report is based on the ‘Capital programme 2018-2019 to 2022-2023 quarter three review and 2019-2020 to 2023-2024 budget strategy’ report also on the agenda for this meeting. The capital report is subject to 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 6 March 2019.

Report author: Sarah Hassell

Publication date: 21/02/2019

Date of decision: 20/02/2019

Decided at meeting: 20/02/2019 - Cabinet

Accompanying Documents: