Issue - meetings

To consider the Treasury Management Strategy for 2019-20.

RECOMMENDED that the Treasury Management Strategy for 2019/20 be approved. 

Councillor T. Schofield, Executive Member for Finance, reported on the current position in relation to the adoption of the proposed Treasury Management Strategy for 2019/20.

The report set out relevant statutory powers, issues (objectives, the current treasury management position, matters for consideration, financial reporting standards and prudential indicators) legal, financial and equalities implications, risk management and other considerations, consultation undertaken and policy framework factors.

The Treasury Management Strategy 2019/20, set out at Annex 1 to the report presented, consisted of four sections with appendices. Councillor Schofield provided information on each of the following:

-       Introduction (Section 1)

-       The Capital Prudential Indicators 2019/20 to 2023/24 (Section 2)

-       The Borrowing Strategy (Section 3)

-       Annual Treasury Investment Strategy (Section 4)

-       Appendices

It was noted that each section had been prepared in accordance with the Council’s Treasury Management Policy Statement. Councillor Schofield informed the Executive that this had been fully-updated to ensure compliance with changes to the Prudential Code, the Treasury Management Code of Practice and other regulations published during 2017 and 2018. It was highlighted that these changes were necessary to reflect the increasingly complex business models being adopted by local authorities in response to reductions in other funding streams.   

The Executive Member for Finance explained that each section contained appropriate Prudential Indicators and highlighted that the Treasury Risk Management Assessment had been incorporated in Section 4, the Annual Treasury Investment Strategy.

The Executive was informed that the draft Treasury Management Strategy had been considered by the Executive in January 2019 and reviewed as part of the consultation by the Treasury Management Panel and the Overview and Scrutiny Committee in February 2019. Councillor Schofield provided an update in relation to changes to the final Treasury Management report, compared to the January draft, and explained that updated tables on counterparty list and minimum criteria per institution had been provided to clearly identify the duration and limits per counterparty. 

In response to questions, it was explained that the Treasury Management Strategy 2019/20 would support the Council’s forthcoming Capital Investment Strategy and general investment approach, which would in turn support the delivery of the Council’s objectives.

RECOMMENDED that the Treasury Management Strategy for 2019/20 be approved. 

Reason for decision: To support the adoption of a Treasury Management Strategy for the 2019/20 financial period.

Alternative options: To not support the contents of the report or to defer it and ask Officers to provide more information and/or clarification on specific points.