Decision details

Treasury Management and Capital Strategies 2019/20 - 2023/24

Decision Maker: Cabinet

Decision status: For Determination

Is Key decision?: No

Is subject to call in?: Yes

Decisions:

Summary

 

The Finance Portfolio Holder, presented a report setting out the Council’s Treasury Management Strategy and Capital Strategy for 2019/20 – 2023/24. The Strategies had been updated to reflect the 2019/20 Budget and Capital Programme.

 

The framework fulfilled five key legislative requirements relating to the setting of prudential indicators, the Council’s Minimum Revenue Provision (MRP) Policy, the Treasury Management Strategy Statement the Investment Strategy and the Capital Strategy, details of which were provided.

 

The report reflected the budget proposals which had been approved for consultation by Council on 18 December 2018.

 

The Treasury Management Strategy was based on the proposed Capital Programme for 2018/19 – 2023/24 as considered by Council on 18 December 2018.

 

The Capital Strategy included potential capital expenditure not currently in the proposed Programme and arising from the review of Council Assets.  The resulting indicators in the Capital Strategy were, therefore, higher as it included potential expenditure and borrowing which might not arise, depending on future decisions around service delivery.  The Capital Strategy would assist in ensuring that the Council had funds available in the future to meet future opportunities which might arise.  It also considered organisational issues, including how the Capital Programme would be prioritised and considerations, including capacity to deliver.  Councillor Jarvis drew attention to an error within Section 5 of the Capital Strategy under paragraph 5.2 where the figure earned by the Council in relation to its 23 investment properties should read £0.464m and not £0.325m.

 

The Strategies ensured that the Council had robust arrangements for investing and that it only borrowed where it was appropriate and affordable.

 

The report had also been considered by the Overview and Scrutiny Committee on 11 January 2019.

 

The Portfolio Holder pointed out that publication of this Capital Strategy in such detail improved the transparency of the Council and he hoped that it provided reassurance that the Council continued to operate in a prudent and professional manner.

 

Decision

 

RESOLVED – That the Treasury Management and Capital Strategies and the authorised borrowing limits within the report be noted and recommended to Council for approval.

 

Reasons for Decision

 

These arrangements enable the priorities of the Council Plan to be achieved.  The Strategies ensure that the Council has robust arrangements for investing and that it only borrows where it is appropriate and affordable.

 

Alternative Options Considered and Rejected

 

No alternative options are proposed.  The Treasury Management Framework is driven largely by legislation and external guidance and reflects the 2018/20 budget.

Report author: Claire Read

Publication date: 08/02/2019

Date of decision: 06/02/2019

Decided at meeting: 06/02/2019 - Cabinet

Effective from: 18/02/2019

Accompanying Documents: