A report from the Executive Director – Resources is attached. (Key decision – reference number 5211)
Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources setting out the Council’s proposed Treasury Management Strategy Statement for the period 2021/22 to 2030/31, and Annual Investment Strategy for the year ended 31 March 2022, together with supporting information.
1. The detailed information provided within the report and Strategy statement. The Strategy set out the Council’s approach for ensuring its capital investment plans are prudent, affordable and sustainable and cash flow properly planned. The investment strategy would continue to give priority to security and liquidity of investment capital over return and would be prudent and transparent.
2. The detailed financial information outlined in the report including the impact of the pandemic.
3. That all treasury management activities would continue to be carried out in accordance with approved limits, be closely monitored and risks mitigated as explained in the report and Strategy. Members also noted the forecast Council loans to its companies.
4. The information set out in the report in relation to the Public Works Loan Board (PWLB), the interest rates and limitations of use. A variety of funding sources would continue to be used and a prudent approach adopted.
5. The Treasury Management Strategy Statement was in line with the requirements of the CIPFA Code and prudential indicators. The process was transparent and subject to good governance and scrutiny. The report had been considered by the General Purposes Committee prior to Cabinet consideration and would be referred on to full Council for formal approval. Robust processes were in place.
Alternative Options Considered: The CIPFA Treasury Management code required that the Council established arrangements for monitoring its investments and borrowing activities hence the performance and activities of the Council’s treasury operations was being reported Cabinet on a regular basis. This report was required to comply with the Council’s Treasury Management Policy statement, agreed by Council.
DECISION: The Cabinet agreed to review the Draft Treasury Management Strategy and considered the five areas below:
1. Agreed the Treasury Management Strategy Statement for 2021/22.
2. Noted the Economic context and interest rate forecast (Appendices A and B of the report referred).
3. Agreed the Prudential Indicators set out in Appendix D of the report.
4. Agreed the Minimum Revenue Provision Statement (Appendix E of the report referred).
5. Agreed the Counterparty List and Limits set out in Appendix F of the report.
6. Recommend to Council the Ten-Year Treasury Strategy.
Reason: The Treasury Management Strategy fulfils the Council’s legal obligation under the Local Government Act 2003 to have regard to both the Treasury Management Code and MHCLG Guidance (paragraphs 11 – 13 of the report referred).
(Key decision – reference number 5211)