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Meeting: 27/02/2020 - Mid Suffolk Council (Item 98)

98 MC/19/40 JOINT CAPITAL, INVESTMENT AND TREASURY MANAGEMENT STRATEGIES (2020/21) pdf icon PDF 952 KB

Cabinet Member for Finance

 

At its meeting on 10 February 2020, Cabinet considered Paper MCa/19/45, together with amendments to the Joint Capital, Investment & Treasury Management Strategies.  Paper MC/19/40 now includes all the relevant updated information, together with the necessary recommendations.

 

Minutes:

 

97.1          The Chair invited Councillor Whitehead to introduce the report and to move the recommendations.

 

97.2          Councillor Whitehead, Cabinet Member for Finance, introduced the report and informed Members that the report had been scrutinised by the Joint Audit and Standards Committee before being presented to Cabinet.

 

97.3          Councillor Whitehead MOVED the recommendations in the Report, which was SECONDED by Councillor Caston.

 

97.4          There were no questions on the report.

 

97.5          During the debate, Councillor Eburne referred to Appendix B and informed Members that she was supporting Gateway 14, as it was a local investment project and within the District.  However, she was against CIFCO and disagreed with investing outside the District and could not support this investment strategy.

 

97.6          Councillor Stringer was concerned about the risk involved with the investments in CIFCO and for this reason he could not support the paper.

 

97.7          Recommendations 3.1 to 3.8 were put to Members for voting and the vote was CARRIED.

 

It was RESOLVED: -

 

1.1         That the Joint Capital Strategy for 2020/21, including the Prudential Indicators, as set out in Appendix A and the updates tabled at the meeting, be approved.

1.2         That the Joint Investment Strategy for 2020/21, as set out in Appendix B, be approved.1.2

1.3         That the Joint Treasury Management Strategy for 2020/21, including the Joint Annual Investment Strategy as set out in Appendix C, be approved.

1.4         That the Joint Treasury Management Indicators as set out in Appendix D, be approved.

1.5         That the Joint Treasury Management Policy Statement as set out in Appendix G, be approved.

1.6          That the Joint Minimum Revenue Provision Statement as set out in Appendix H, 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 be noted.

That Officers and Members, Working Parties and whatever mechanisms have been set up commence exploring alternative investment strategies that take greater account of the Councils’ own declaration of a climate change emergency.


Meeting: 26/02/2020 - Babergh Council (Item 213)

213 BC/19/37 JOINT CAPITAL, INVESTMENT AND TREASURY MANAGEMENT STRATEGIES 2020/21 pdf icon PDF 951 KB

Cabinet Member for Finance

 

At its meeting on 11 February 2020, Cabinet considered Paper BCa/19/36, together with amendments to the Joint Capital, Investment & Treasury Management Strategies.  Paper BC/19/37 now includes all the relevant updated information, together with the necessary recommendations.

 

Minutes:

213.1          The Chair of the Council invited Councillor Ward to introduce Paper BC/19/37.

 

213.2          Councillor Ward, the Leader, summarised the concerns of the MHCLG and CIPFA, which had resulted in a separate Capital, Investment and Treasury Management strategy statements and prudential indicators following the new guidance issued by CIPFA and MHCLG.

 

213.3          Councillor Ward then directed Members’ attention to the main points in the report, the Capital Strategy in Appendix A summarised the capital expenditure and financing requirements of the full capital programme, for both the GF and HRA, the details of which were detailed in the Budget Reports.

 

213.4          The report outlined the capital expenditure and capital investment decisions and the associated risks and rewards along with how risk was managed for future financial sustainability. 

 

213.5          Capital expenditure for the next four years was shown in table 1 (paragraph 2.3) and the financing was detailed in table 2 (paragraph 2.11). The tables indicated that the total capital expenditure planned for 2020/21 was £32.89m, and most of the general fund expenditure would be funded by borrowing.

 

213.6          Appendix A included Prudential Indicators, which demonstrated that the Councils’ investment plans were affordable, prudent and sustainable, and decisions were made according to good practice. Tables 1, 4, 6, 8 and 9 illustrated the affordability and impact of capital expenditure decisions and included both Councils’ overall capital and treasury framework.

 

213.7          Tables 6 and 7 outlined borrowing measured against two benchmarks – the Capital Financing Requirement and Liability Benchmark.  Babergh’s CFR was expected to increase by £21.34m to £177.77m in 2020/21 and the Outstanding Debt to increase by £15.25m to £138.21m.

 

213.8          Appendix B detailed those expenditure items in the capital programme that specifically relate to assets bought/owned by the Councils to generate a return, or for regeneration or development of the local area. In this context “Investments” means non-treasury management activities, which were described separately in Appendix C. There were 2 types of these investments:

 

·            Service Provision – where the Councils lend to or buy shares in organisations that provide a service

·            “For profit” Commercial Investments which generated a return – such as the Council owned companies CIFCO and Gateway 14, but also our directly-owned property assets.

 

213.9        Both Councils were continuing to develop their property and commercial portfolios, either by purchasing them directly or through the Councils’ investment companies.

 

213.10    Appendix C sets out the Council’s Treasury Management Strategy and borrowing requirement and borrowing and treasury management investment strategies. It also included the list of Approved Investment Counterparties and Limits. Table 1 (paragraph 3.3) illustrated the breakdown of the Capital Financing Requirement over the next four years. Both Councils had an increasing CFR due to the capital programme and investments.

 

213.11    Councillor Ward then summarised the content in Appendices D to I.

 

NOTE - Correction to Appendix A: page 130, paragraph 7.2, the Babergh number should read 4.44% and the Mid Suffolk 9.93%.

 

213.12   Councillor Ward MOVED recommendations 3.1 to 3.7 in the report, which was SECONDED by Councillor Holt.

 

213.13  ...  view the full minutes text for item 213


Meeting: 11/02/2020 - Babergh Cabinet (Item 224)

224 BCa/19/36 JOINT CAPITAL, INVESTMENT AND TREASURY MANAGEMENT STRATEGIES 2020/21 pdf icon PDF 735 KB

Cabinet Member for Finance

Additional documents:

Decision:

It was RESOLVED:

 

1.1           That the Joint Capital Strategy for 2020/21, including the Prudential Indicators set out in Appendix A of the report and the updates tabled at the meeting be endorsed for recommendation to Council on 26 February 2020 as detailed below.

1.2           That the Joint Investment Strategy for 2020/21, as set out in Appendix B of the report and the updates tabled at the meeting be endorsed for recommendation to Council on 26 February 2020.

1.3     That the Joint Treasury Management Strategy for 2020/21, including the Joint Annual Investment Strategy as set out in Appendix C of the report and the updates tabled at the meeting be endorsed for recommendation to Council on 26 February 2020.

1.4   That the Joint Treasury Management Indicators as set out in Appendix D of the report be endorsed for recommendation to Council on 26 February 2020.

1.5   That the Joint Treasury Management Policy Statement as set out in Appendix G of the report be endorsed for recommendation to Council on 26 February 2020.

1.6   That the Joint Minimum Revenue Provision Statement as set out in Appendix H of the report be endorsed for recommendation to Council on 26 February 2020.

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: Localauthorities arerequired toapprove theirTreasury ManagementStrategy (TMS), their Capital Strategy (including an overview of the TMS) and their Investment Strategy annually before the start of the financialyear.

 

Alternative Options Considered and Rejected:

 

1.1     This report fulfils the Councils legal obligations to have regard to the Code and MHCLGGuidance.

 

1.2     Individual strategies were considered but Joint Strategies have beenprepared.

 

Any Declarations of Interests Declared: None

 

Any Dispensation Granted: None

 

Minutes:

The report was introduced by the Leader of the Council who provided Members with an overview of the appendices to the report which included the Joint Capital Strategy, Joint Investment Strategy, Joint Treasury Management Strategy, Treasury Management Indicators, Economic Outlook and Interest Rate Forecast, Existing Borrowing and Investments, Treasury Management Policy Statement and Minimum Revenue Provision Statement.

 

Councillor Ward proposed recommendations 3.1 to 3.7 of the report and explained that recommendation 3.8 had been proposed by the Joint Audit and Standards Committee. Councillor Ward commented that although he understood the sentiment behind this recommendation, he believed that the primary focus of the Councils investments was to maximise returns to ensure income was available to guarantee services to residents.

 

Councillor Arthey queried the aim of recommendation 3.8 and commented that it was unclear what change was needed. Councillor Ward confirmed that the Joint Audit and Standards Committee’s debate had focussed on whether oil and gas companies were appropriate companies for the Council to invest in.

 

Councillor Parker expressed reservations regarding the wording of the recommendation which he felt was unclear.

 

Councillor Busby agreed that the wording of the recommendation was unclear however he understood the sentiment that there was more than one aspect to investments which should be considered.

 

Councillor Holt commented that he felt the wording of the recommendation had no meaning or definition and would support removal of the recommendation.

 

In response to a question from Councillor Parker, the Chief Executive advised that he believed the lease referred to in Appendix B, Paragraph 3.10 was 24 years however confirmation would be provided. 

 

Councillor Davis seconded Councillor Ward’s proposal of recommendations 3.1 to 3.7 of the report.

 

By a unanimous vote

 

It was RESOLVED:

 

1.1 That the Joint Capital Strategy for 2020/21, including the Prudential Indicators set out in Appendix A of the report and the updates tabled at the meeting be endorsed for recommendation to Council on 26 February 2020 as detailed below.

 

1.2 That the Joint Investment Strategy for 2020/21, as set out in Appendix B of the report and the updates tabled at the meeting be endorsed for recommendation to Council on 26 February 2020.

 

1.3 That the Joint Treasury Management Strategy for 2020/21, including the Joint Annual Investment Strategy as set out in Appendix C of the report and the updates tabled at the meeting be endorsed for recommendation to Council on 26 February 2020.

 

1.4 That the Joint Treasury Management Indicators as set out in Appendix D of the report be endorsed for recommendation to Council on 26 February 2020.

 

1.5 That the Joint Treasury Management Policy Statement as set out in Appendix G of the report be endorsed for recommendation to Council on 26 February 2020.

 

1.6 That the Joint Minimum Revenue Provision Statement as set out in Appendix H of the report be endorsed for recommendation to Council on 26 February 2020.

 

1.7 That the key factors and information relating to and affecting treasury management activities set out in Appendices E, F, and  ...  view the full minutes text for item 224


Meeting: 10/02/2020 - Mid Suffolk Cabinet (Item 96)

96 MCa/19/45 JOINT CAPITAL, INVESTMENT AND TREASURY MANAGEMENT STRATEGIES 2020/21 pdf icon PDF 380 KB

Cabinet Member for Finance

Additional documents:

Decision:

It was RESOLVED:-

 

1.1     That theJoint CapitalStrategy for2020/21, includingthe PrudentialIndicators set out in AppendixA of the report and the updates tabled at the meeting be endorsed for recommendation to Council on 27 February 2020 as detailed below.

 

1.2     That the Joint Investment Strategy for 2020/21, as set out in AppendixB of the report and the updates tabled at the meeting be endorsed for recommendation to Council on 27 February.

 

1.3     That the Joint Treasury Management Strategy for 2020/21, including the Joint Annual Investment Strategy as set out in AppendixC of the report and the updates tabled at the meeting be endorsed for recommendation to Council on 27 February 2020 .

 

1.4     That the Joint Treasury Management Indicators as set out in AppendixD of the report be endorsed for recommendation to Council on 27 February 2020.

 

1.5     That the Joint Treasury Management Policy Statement as set out in AppendixG of the report be endorsed for recommendation to Council on 27 February 2020.

 

1.6     That the Joint Minimum Revenue Provision Statement as set out in AppendixH of the report be endorsed for recommendation to Council on 27 February 2020.

 

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 benoted.

 

1.8     ThatOfficers andMembers, WorkingParties andwhatever mechanismshave been set up commence exploring alternative investment strategies that take greater account of the Councils’ own declaration of a climate changeemergency.

 

Reason for Decision:Local authoritiesare requiredto approvetheir TreasuryManagement Strategy (TMS), their Capital Strategy (including an overview of the TMS) and their Investment Strategy annually before the start of the financialyear.

 

Alternative Options Considered and Rejected:

 

1.1    This report fulfils the Councils legal obligations to have regard to the Code and MHCLGGuidance.

 

1.2    Individual strategies were considered but Joint Strategies have beenprepared.

 

Any Declarations of Interests Declared: None

 

Any Dispensation Granted: None

 

 

 

Minutes:

The report was introduced by the Cabinet Member for Finance who explained to Members that the report had been presented to the Joint Overview and Scrutiny Committee and would be presented to Full Council in February. Councillor Whitehead explained that this was a joint report and the strategies contained within the report applied to both Mid Suffolk and Babergh District Councils.

 

Councillor Whitehead proposed recommendations 3.1 to 3.8 of the report and explained that recommendation 3.8 had been proposed by the Joint Audit and Standards Committee. The recommendations were seconded by Councillor Burn.

 

In response to a question from Councillor Field, Councillor Whitehead provided details of the types of returns from the various proposed investments.

 

By a unanimous vote

 

It was RESOLVED:-

 

1.1     That the Joint Capital Strategy for 2020/21, including the Prudential Indicators set out in Appendix A of the report and the updates tabled at the meeting be endorsed for recommendation to Council on 27 February 2020 as detailed below.

 

1.2     That the Joint Investment Strategy for 2020/21, as set out in Appendix B of the report and the updates tabled at the meeting be endorsed for recommendation to Council on 27 February.

 

1.3     That the Joint Treasury Management Strategy for 2020/21, including the Joint Annual Investment Strategy as set out in Appendix C of the report and the updates tabled at the meeting be endorsed for recommendation to Council on 27 February 2020 .

 

1.4     That the Joint Treasury Management Indicators as set out in Appendix D of the report be endorsed for recommendation to Council on 27 February 2020.

 

1.5     That the Joint Treasury Management Policy Statement as set out in Appendix G of the report be endorsed for recommendation to Council on 27 February 2020.

 

1.6     That the Joint Minimum Revenue Provision Statement as set out in Appendix H of the report be endorsed for recommendation to Council on 27 February 2020.

 

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.

 

1.8     That Officers and Members, Working Parties and whatever mechanisms have been set up commence exploring alternative investment strategies that take greater account of the Councils’ own declaration of a climate change emergency.

 

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.

 

 

 

 


Meeting: 27/01/2020 - Joint Audit and Standards Committee (Item 21)

21 JAC/19/13 JOINT CAPITAL, INVESTMENT AND TREASURY MANAGEMENT STRATEGIES (2020/21) pdf icon PDF 1 MB