Issue - meetings

This report includes the mid-year review of the Treasury Management Strategy 2014/15 and seeks approval to the Council’s Treasury Management Strategy for the 2015/16 financial year.

Discussion:

This report provided details of the mid-year review of the Treasury Management Strategy 2014/15 and the Council’s Treasury Management Strategy for the 2015/16.

The mid-year report element of this report had been prepared in compliance with CIPFA’s Code of Practice on Treasury Management, and covered the following:

• An economic update for the first six months of 2014/15
• A review of the Treasury Management Strategy Statement and Annual Investment Strategy
• A review of the Council’s investment portfolio for 2014/15
• A review of the Council’s borrowing strategy for 2014/15
• A review of any debt rescheduling undertaken during 2014/15
• A review of compliance with Treasury and Prudential Limits for 2014/15.

The prudential and treasury indicators and treasury strategy sections of the report covered two main areas:

Capital issues

• The capital plans and the prudential indicators
• The minimum revenue (MRP) policy.

Treasury management issues

• The current treasury position
• Treasury indicators which limit the treasury risk and activities of the Council
• Prospects for interest rates
• The borrowing strategy
• Policy on borrowing in advance of need
• Debt rescheduling
• The investment strategy
• Creditworthiness policy
• Policy on use of external service providers.

These elements covered the requirements of the Local Government Act 2003, the CIPFA Prudential Code, Communities and Local Government Guidance on Minimum Revenue Position (CLG MRP Guidance), the CIPFA Treasury Management Code and CLG Investment Guidance.

The Audit Committee and Cabinet considered this report on 15 January 2015 and 10 February 2015 respectively and their comments were set out in paragraphs 7 and 8 of the report.

Appendices 1-9 were set out in Supplementary Agenda No.1.

A Diversity Impact Assessment had been undertaken on the Treasury Management Strategy, details of which were included at Appendix 9 to the report.

The Deputy Leader and Portfolio Holder for Finance, Councillor Jarrett, supported by the Leader of the Council, Councillor Rodney Chambers OBE, proposed the recommendations set out in the report.

Decision:

(a)         The Council noted the comments of the Audit Committee and the Cabinet.

(b)         The Council noted the mid-year review of the Treasury Management Strategy 2014/15, as set out in section 3 of the report.

(c)         The Council approved the Treasury Management Strategy and associated policies and strategy statements as set out in section 4 and Appendices 1-6 to the report.

Background:

This report provided details of the mid-year review of the Treasury Management Strategy 2014/15 and the Council’s Treasury Management Strategy for the 2015/16.

The mid-year report element of this report has been prepared in compliance with CIPFA’s Code of Practice on Treasury Management, and covered the following:

• An economic update for the first six months of 2014/15
• A review of the Treasury Management Strategy Statement and Annual Investment Strategy
• A review of the Council’s investment portfolio for 2014/15
• A review of the Council’s borrowing strategy for 2014/15
• A review of any debt rescheduling undertaken during 2014/15
• A review of compliance with Treasury and Prudential Limits for 2014/15.

The prudential and treasury indicators and treasury strategy sections of the report covered two main areas:

Capital issues

• The capital plans and the prudential indicators
• The minimum revenue (MRP) policy.

Treasury management issues

• The current treasury position
• Treasury indicators which limit the treasury risk and activities of the Council
• Prospects for interest rates
• The borrowing strategy
• Policy on borrowing in advance of need
• Debt rescheduling
• The investment strategy
• Creditworthiness policy
• Policy on use of external service providers.

These elements covered the requirements of the Local Government Act 2003, the CIPFA Prudential Code, Communities and Local Government Guidance on Minimum Revenue Position (CLG MRP Guidance), the CIPFA Treasury Management Code and CLG Investment Guidance.

The Audit Committee considered this report on 15 January 2015 and its comments were set out in paragraph 7 of the report.

Appendices 1-10 were set out in Supplementary Agenda No.1.

A Diversity Impact Assessment had been undertaken on the Treasury Management Strategy, details of which were included at Appendix 9 to the report.

Reasons:

Cabinet has the responsibility to make recommendations to Full Council on the approval of the Council’s Treasury Management, Investment Strategy and Minimum Revenue Provision Policy Statement and has responsibility for the implementation of the Treasury Management Practices and associated schedules.