Issue - meetings

This report seeks approval to the Council’s Treasury Management Strategy for the 2013/2014 financial year.  The Treasury Management Strategy incorporates within it the Treasury Management Policy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy.

Discussion:

This report presented the Council’s Treasury Management Strategy for 2013/2014. The strategy incorporated the Treasury Management Policy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy.

The annual presentation of a Treasury Management Strategy was a requirement under the CIPFA Code of Practice on Treasury Management, adopted by the Council on 25 February 2010. It covered the various aspects of the treasury management function and was based on the treasury officers’ views on interest rates, supplemented with leading market forecasts provided by the Council’s treasury adviser, Sector.

The Business Support Overview and Scrutiny Committee considered this report on 7 February 2013 and its views were set out in paragraph 15 of the report. The Cabinet considered this report on 12 February 2013 and its recommendation to Council was set out in paragraph 16 of the report.

A Diversity Impact Assessment screening had been undertaken and was set out in Appendix 7 to the report. It was not necessary to proceed to a full impact assessment. It was noted that the Treasury Management Strategy did not directly impact on members of the public as it dealt with the management of the local authority’s investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.

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

Decision:

(a)   The Council agreed to increase the operational boundary and authorised limit to £4,000,000 and £4,400,000 respectively for other long term liabilities for 2012/2013, as set out in paragraph 3.8 of the report.

(b)   The Council approved the Treasury Management Strategy and associated policies and strategy statements as attached in Appendices 1-6 to the report.

Background:

This report presented the Council’s Treasury Management Strategy for 2013/2014. The strategy incorporated the Treasury Management Policy Statement, Annual Investment Strategy and Minimum Revenue Provision Policy. Proposed amendments to the Treasury Management Practices were also set out.

The annual presentation of a Treasury Management Strategy was a requirement under the CIPFA Code of Practice on Treasury Management. It covered the various aspects of the treasury management function and was based on the treasury officers’ views on interest rates, supplemented with leading market forecasts provided by the Council’s treasury adviser, Sector.

The Business Support Overview and Scrutiny Committee had considered this report on 7 February 2013 and the views of the Committee were set out in an addendum report. An amended Appendix 3 was also tabled. This corrected some incorrect information and changed the upper limit percentage of fixed rate borrowing under 12 months from 50% to 75%, following a recent change in practice by CIPFA.

A Diversity Impact Assessment screening had been undertaken and was set out in Appendix 8 to the report. It was not necessary to proceed to a full impact assessment. It was noted that the Treasury Management Strategy did not directly impact on members of the public as it dealt with the management of the local authority’s investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.

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 along with scrutinising the Treasury Management Practices and associated schedules.