A report from the Director of Finance is attached. (Key decision – reference number 4829)

(Report No.161)

(7.40 – 7.45 pm)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Director of Finance (No.161) seeking approval to the Council’s Treasury Management Strategy 2019/20.

NOTED

1.            That the Council’s cashflow management, use of banks, investments and borrowing was governed by the Treasury Management Strategy, as detailed in the report.

2.            The background information set out in section 3 of the report. The successful identification, monitoring and control of risk were central to the Council’s Treasury Management Strategy and to mitigate these risks.

3.            That as at 31 December 2018 the Council had £804m of borrowing in total, as set out in paragraph 3.7 of the report. The Council would not borrow more than or in advance of its needs. The Council was required to invest its funds prudently. Given the increasing risks and continued low returns from short term unsecured bank investments, the Council aimed to reduce the level of investments held by continuing to internalise borrowing (paragraph 3.8 of the report referred).

4.            The detailed information set out in the Treasury Management Statement and its appendices.

5.            In response to questions raised, the mitigating measures that were taken to minimise risks were outlined to Members. It was noted that the budget proposals contained an interest rate risk reserve. A prudent approach was taken by the Council.

Alternative Options Considered: NOTED, that there were no other options, the Treasury Management reports need to be approved prior to the next financial year. Section 7 of the Treasury Management Strategy set out the alternatives considered.

RECOMMENDED TO COUNCIL

1.            To agree the Treasury Management Strategy 2019/20.

2.            To note the economic context and interest rate forecast (Appendices A and B of the Strategy referred).

3.            To agree the Prudential Indicators (Appendix D of the Strategy referred)

4.            To agree the Minimum Revenue Provision Statement (Appendix E of the Strategy referred)

5.            To agree the Counter-party List and Limits (Appendix F of the Strategy referred).

Reason: These items had been brought to the attention of the Audit and Risk Management Committee in line with the requirements of the CIPFA Code of Practice.

(Key decision – reference number 4829)