Decision details

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

Decision Maker: Overview and Scrutiny Committee

Decision status: For Determination

Is Key decision?: No

Is subject to call in?: No

Purpose:

Report to approve the Treasury Management and Capital Strategies for the new financial year

Decisions:

Councillor Andrew Jarvis, 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 18December 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.

 

Members thanked Councillor Jarvis and officers for an informative report.  Councillor Jarvis responded to a query explaining that decisions on all capital investments, including those which were commercial in nature, were reported and made through Cabinet and Council.  The Assistant Director Resources (Section 151 Officer) confirmed that all such decisions were made through the budget process and that any proposals for large borrowing would come forward with a business case.

 

RESOLVED – That

 

(1)        the Treasury Management and Capital Strategies and the authorised borrowing limits within the report be noted; and

 

(2)        Cabinet be recommended to endorse both strategies for recommendation to Council.

Report author: Lee Hurst

Publication date: 24/01/2019

Date of decision: 11/01/2019

Decided at meeting: 11/01/2019 - Overview and Scrutiny Committee

Accompanying Documents: