Issue - meetings

This report presents the Council’s Treasury Management Strategy for the 2016/2017 financial year for approval. The Treasury Management Strategy incorporates within it the Treasury Management Policy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy.

Discussion:

This report provided details of the Council’s Treasury Management Strategy for the 2016/2017 financial year, incorporating the Treasury Management Policy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy.

The report had been considered by the Audit Committee on 12 January 2016 and Cabinet on 9 February 2016, as detailed in paragraphs 15 and 16 of the report.

A Diversity Impact Assessment had been carried out on the proposed Strategy, as detailed in Appendix 7 to the report.

The Leader of the Council, Councillor Jarrett, supported by the Portfolio Holder for Resources, Councillor Gulvin, proposed the recommendations in the report.

Decision:

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

b)    The Council approved the proposed changes in the Minimum Revenue Provision Policy, as set out in Appendix 1 to the report, to take effect from the 2015/16 financial year onwards.

c)    The Council approved the Treasury Management Strategy as set out in the report and Appendices 1-6 to the report.

Background:

This report provided details of the Council’s Treasury Management Strategy for 2016/2017. The report provided details of the Minimum Revenue Provision (MRP) and the Policy Statement for 2016/17 as set out in Appendix 1 to the report. A change to the MRP Policy was proposed for application in 2015/16 as well as for future years for the reasons set out in paragraph 14 of the report.

It was noted that the Treasury Management Strategy for 2016/17 covered the following issues:

·                    Capital plans and the prudential indicators

·                    The MRP strategy

·                    The current treasury position

·                    Treasury indicators which will 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.

Proposed amendments to Treasury Management Practices included the following:

·                    Approved Countries

·                    Treasury and Prudential Indicators.

·                    The Authorised Limit and Operational Boundary

·                    MRP Policy

·                    Reassignment of officer duties reflecting current departmental structure

·                    Removal of references to the use of external fund manager Investec.

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 12 January 2016 and its comments were set out in paragraph 15 of the report.

A Diversity Impact Assessment had been undertaken on the Treasury Management Strategy, as set out in Appendix 7 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.