Issue - meetings

Cabinet, at its meeting on 31 January 2019, considered a report on the council’s treasury management strategy (TMS) for 2019/20 and set out the expected treasury operations for this period.

The Joint Audit and Governance Committee considered the report at its meeting on 28 January 2019 and had not recommended any adjustments to the strategy.  Cabinet agreed to recommend Council approve the strategy.

The report of the head of finance, which Cabinet considered on 31 January 2019, is attached.

RECOMMENDATION to Council to:

1.         approve the treasury management strategy 2019/20, set out in appendix A to the head of finance’s report to Cabinet on 31 January 2019; 

2.         approve the prudential indicators and limits for 2019/20 to 2021/22, as set out in appendix A to the head of finance’s report; and 

3.         approve the annual investment strategy 2019/20, set out in appendix A (paragraphs 40 to 81) to the head of finance’s report, and the lending criteria detailed in table 5 to that report. 

Council considered Cabinet’s recommendations, made at its meeting on 31 January 2019, on the council’s treasury management strategy for 2019/20.

The Joint Audit and Governance Committee considered the report at its meeting on 28 January 2019 and had not recommended any adjustments to the strategy. Cabinet agreed to recommend Council approve the strategy. 

RESOLVED: to

1.    approve the treasury management strategy 2019/20, as set out in appendix A to the head of finance’s report to Cabinet on 31 January 2019; 

2.    approve the prudential indicators and treasury limits for the period 2019/20 to 2021/22, as set out in appendix A to the head of finance’s report to Cabinet on 31 January 2019; and

3.    approve the annual investment strategy 2019/20, as set out in appendix A (paragraphs 40 to 81), to the head of finance’s report to Cabinet on 31 January 2019, and the lending criteria detailed in table 5.

To consider the head of finance’s report. 

Cabinet considered the head of finance’s report on the draft treasury management and investment strategy for 2019/20.  This set out how the council’s treasury service supported the financing of capital investment decisions, and how treasury management operated day to day.  It set out the limitations on treasury management activity informed by the prudential indicators, within which the council’s treasury function must operate.  The strategy included the three elements, required by legislation:

·         The prudential indicators required by the Chartered Institute of Public Finance and Accountancy (CIPFA) Prudential Code 2017 for Capital Finance in Local Authorities and the CIPFA Treasury Management Code of Practice 2017;

·         The annual investment strategy, which set out the council’s criteria for selecting counterparties and limiting exposure to the risk of loss on its investments; and

·         A statutory duty for Council to approve a minimum revenue provision policy statement.

Cabinet noted that the Joint Audit and Governance Committee had considered the draft strategy on 28 January and had agreed the recommendations.  Cabinet supported the proposed strategy, including the proposed changes to counterparty limits and the wider choice of investment types permitted. 

RECOMMENDED to Council to:

(a)     approve the treasury management strategy 2019/20, set out in appendix A to the head of finance’s report to Cabinet on 31 January 2019; 

(b)     approve the prudential indicators and limits for 2019/20 to 2021/22, as set out in appendix A to the head of finance’s report; and 

(c)     approve the annual investment strategy 2019/20, set out in appendix A (paragraphs 40 to 81) to the head of finance’s report, and the lending criteria detailed in table 5 to that report.