118 BCa/18/64 JOINT CAPITAL, INVESTMENT AND TREASURY MANAGEMENT STRATEGIES 2019/20 PDF 1 MB
Cabinet Member for Finance
At its meeting on 14 January 2019, the Joint Audit and Standards Committee scrutinised Paper JAC/18/16 and agreed the recommendations to Cabinet and Council – a link to the report is provided for Members’ information. However, a revised version of the report is attached as Paper BCa/18/64 which reflects changes to the numbers since the meeting due to amendments to the capital programme as part of the Budget process.
Decision:
BCa/18/64 –JOINT CAPITAL, INVESTMENT AND TREASURY MANAGEMENT STRATEGIES 2019/20
That the Cabinet recommends to Council:
1.1 The Joint Capital Strategy for 2019/20, including the Prudential Indicators, as set out in Appendix A of the report be approved.
1.2 The Joint Investment Strategy for 2019/20, as set out in Appendix B of the report be approved.
1.3 The Joint Treasury Management Strategy for 2019/20, including the Joint Annual Investment Strategy as set out in Appendix C of the report be approved.
1.4 The Joint Treasury Management Indicators as set out in Appendix D of the report be approved.
1.5 The Joint Treasury Management Policy Statement as set out in Appendix G of the report be approved.
1.6 The Joint Minimum Revenue Provision Statement as set out in Appendix H of the report be approved.
1.7 That the key factors and information relating to and affecting treasury management activities set out in Appendices E, F, and I of the report be noted be approved.
Reason for Decision:
Local authorities are required to approve their Treasury Management Strategy (TMS), their Capital Strategy (including an overview of the TMS) and their Investment Strategy annually before the start of the financial year.
Alternative Options Considered and Rejected:
1.1 This report fulfils the Councils legal obligations to have regard to the Code and MHCLG Guidance.
1.2 Individual strategies were considered but Joint Strategies have been prepared.
Any Declarations of Interest declared: None
Any Dispensation Granted: None
Minutes:
118.1 Councillor Ward presented the report and informed Cabinet that following consultations last year CIPFA had published its 2017 edition of the Treasury Code of Practice, the Prudential Code and the 2018 Ministry of Housing, Communities and Local Government Investment Guide.
118.2 The Council was now required to determine separate Capital and Investment and Treasury Management Statements and Prudential Indicators annually before the start of each financial year. Therefore both the Capital Strategy and the Investment Strategy are new this year.
118.3 Councillor Ward then detailed the appendices to the report and the content in them.
118.4 Councillor Busby stated that the Council seemed to spend a lot of time and effort on financial money management rather than service delivery and asked if this was a trend that the Council should be careful of?
118.5 In response the Leader confirmed that the Council was not spending any less time on service delivery as this was the primary objective of the Council. However, money management was important because without it the Council would not be able to deliver services.
118.6 Councillor Ward MOVED the recommendations in the report which Councillor Simon Barrett SECONDED.
That the Cabinet recommends to Council:
(i) The Joint Capital Strategy for 2019/20, including the Prudential Indicators, as set out in Appendix A of the report be approved.
(ii) The Joint Investment Strategy for 2019/20, as set out in Appendix B of the report be approved.
(iii) The Joint Treasury Management Strategy for 2019/20, including the Joint Annual Investment Strategy as set out in Appendix C of the report be approved.
(iv) The Joint Treasury Management Indicators as set out in Appendix D of the report be approved.
(v) The Joint Treasury Management Policy Statement as set out in Appendix G of the report be approved.
(vi) The Joint Minimum Revenue Provision Statement as set out in Appendix H of the report be approved.
(vii) That the key factors and information relating to and affecting treasury management activities set out in Appendices E, F, and I of the report be noted be approved.
Reason for Decision: Local authorities are required to approve their Treasury Management Strategy (TMS), their Capital Strategy (including an overview of the TMS) and their Investment Strategy annually before the start of the financial year.
118 MCa/18/61 JOINT CAPITAL, INVESTMENT AND TREASURY MANAGEMENT STRATEGIES 2019/20 PDF 1 MB
Cabinet Member for Finance
At its meeting on 14 January 2019, the Joint Audit and Standards Committee (JAC) scrutinised Paper JAC/18/16 and agreed the recommendations to Cabinet and Council – a link to the report is provided for Members’ information. However, a revised version of the report is attached as Paper MCa/18/61 which reflects changes to the numbers since the meeting due to amendments to the capital programme as part of the Budget process.
Decision:
It was RESOLVED:-
That Cabinet recommends to council:
1.1 The Joint Capital Strategy for 2019/20, including the Prudential Indicators, as set out in Appendix A of the report be approved.
1.2 The Joint Investment Strategy for 2019/20, as set out in Appendix B of the report be approved.
1.3 The Joint Treasury Management Strategy for 2019/20, including the Joint Annual Investment Strategy as set out in Appendix C of the report be approved.
1.4 The Joint Treasury Management Indicators as set out in Appendix D of the report be approved.
1.5 The Joint Treasury Management Policy Statement as set out in Appendix G of the report be approved.
1.6 The Joint Minimum Revenue Provision Statement as set out in Appendix H of the report be approved.
1.7 That the key factors and information relating to and affecting treasury management activities set out in Appendices E, F, and I of the report be noted.
Reason for Decision: Local authorities are required to approve their Treasury Management Strategy (TMS), their Capital Strategy (including an overview of the TMS) and their Investment Strategy annually before the start of the financial year.
Alternative Options Considered and Rejected:
1.1 This report fulfils the Councils legal obligations to have regard to the Code and MHCLG Guidance.
1.2 Individual strategies were considered but Joint Strategies have been prepared.
Minutes:
Report MCa/18/61 was introduced by the Cabinet Member for Finance who commended the Finance and Assets and Investments team for their work in producing the report.
Councillor Whitehead moved the recommendations in the report. This was seconded by Councillor Morley.
The Cabinet Member for Finance responded to questions raised by Councillor Stringer regarding the CIFCO investment. The Assistant Director for Finance advised that a stress test is being carried out around CIFCO investments and borrowing costs and the outcome will be included in the report to Full Council.
The Assistant Director for Finance went on to answer questions from Councillor Otton regarding valuations of commercial properties and the economic forecast.
By 8 votes to 2
It was RESOLVED:-
That Cabinet recommends to council:
1.1 The Joint Capital Strategy for 2019/20, including the Prudential Indicators, as set out in Appendix A of the report be approved.
1.2 The Joint Investment Strategy for 2019/20, as set out in Appendix B of the report be approved.
1.3 The Joint Treasury Management Strategy for 2019/20, including the Joint Annual Investment Strategy as set out in Appendix C of the report be approved.
1.4 The Joint Treasury Management Indicators as set out in Appendix D of the report be approved.
1.5 The Joint Treasury Management Policy Statement as set out in Appendix G of the report be approved.
1.6 The Joint Minimum Revenue Provision Statement as set out in Appendix H of the report be approved.
1.7 That the key factors and information relating to and affecting treasury management activities set out in Appendices E, F, and I of the report be noted.
Reason for Decision: Local authorities are required to approve their Treasury Management Strategy (TMS), their Capital Strategy (including an overview of the TMS) and their Investment Strategy annually before the start of the financial year.