Issue - meetings

Treasury Management Strategy 2017/18

Meeting: 20/02/2017 - Council (Item 87)

87 Treasury Management Strategy 2017/18 pdf icon PDF 130 KB

The Head of Financial Services submitted a report to the City Executive Board on 9 February which presents the Council’s Treasury Management Strategy for 2017/18 together with the Prudential Indicators for 2017/18 to 2019/20.

 

The Deputy Leader will move the recommendations and the Head of Financial Services will be available to answer questions.

 

Recommendations: the City Executive Board recommends that Council:

 

1.  approve the Treasury Management Strategy 2017/18, and adopt the Prudential Indicators for 2017/18 – 2019/20 as set out in paragraphs 7 to 37 and Appendix 2 of the report;

 

2.  approve the Borrowing Strategy at paragraphs 7 to 18 of the report;

 

3.  approve the Minimum Revenue Provision (MRP) Statement at paragraphs 19 to 22 of the report which sets out the Council’s policy on charging borrowing to the revenue account; and

 

4.  approve the Investment Strategy for 2017/18 and investment criteria as set out in paragraphs 23 to 37 and Appendix 1 of the report.

 

Additional documents:

Minutes:

Council considered a report submitted to the City Executive Board on 9 February setting out the Council’s Treasury Management Strategy for 2017/18 together with the Prudential Indicators for 2017/18 to 2019/20.

Council resolved to:

1.    approve the Treasury Management Strategy 2017/18, and adopt the Prudential Indicators for 2017/18 – 2019/20 as set out in paragraphs 7 to 37 and Appendix 2 of the report;

2.    approve the Borrowing Strategy at paragraphs 7 to 18 of the report;

3.    approve the Minimum Revenue Provision (MRP) Statement at paragraphs 19 to 22 of the report which sets out the Council’s policy on charging borrowing to the revenue account; and

4.    approve the Investment Strategy for 2017/18 and investment criteria as set out in paragraphs 23 to 37 and Appendix 1 of the report.

 


Meeting: 09/02/2017 - City Executive Board (became Cabinet on 13 May 2019) (Item 128)

128 Treasury Management Strategy 2017/18 pdf icon PDF 130 KB

The Head of Financial Services has submitted a report which presents the Council’s Treasury Management Strategy for 2017/18 together with the Prudential Indicators for 2017/18 to 2019/20.

 

Recommendations: That the City Executive Board resolves to:

 

1.    Recommend that Council approve the Treasury Management Strategy 2017/18, and adopt the Prudential Indicators for 2017/18 – 2019/20 as set out in paragraphs 7 to 37, and Appendix 2;

 

2.    Recommend that Council approve the Borrowing Strategy at paragraphs 7 to 18;

 

3.    Recommend that Council approve the Minimum Revenue Provision (MRP) Statement at paragraphs 19 to 22 which sets out the Council’s policy on charging borrowing to the revenue account; and

 

4.    Recommend that Council approve the Investment Strategy for 2017/18 and investment criteria as set out in paragraphs 23 to 37 and Appendix 1.

 

Additional documents:

Minutes:

The Head of Financial Services submitted a report which presented the Council’s Treasury Management Strategy for 2017/18 together with the Prudential Indicators for 2017/18 to 2019/20.

 

Cllr Turner, Board Member for Finance, Asset Management and Public Health presented the report.

 

Cllr Price asked if the Council had any investments on the stock-market. The Director for Organisational Development and Corporate Services said that the Council does not invest in stocks and shares as the risk is too great. We prefer low risk investments such as bonds in building societies but also had money invested in property funds. Until the Bank of England’s base rate increases, Council won’t see a huge change in its investment strategy.

 

The City Executive Board resolves to:

 

1.    Recommend that Council approve the Treasury Management Strategy 2017/18, and adopt the Prudential Indicators for 2017/18 – 2019/20 as set out in paragraphs 7 to 37, and Appendix 2;

 

2.    Recommend that Council approve the Borrowing Strategy at paragraphs 7 to 18;

 

3.    Recommend that Council approve the Minimum Revenue Provision (MRP) Statement at paragraphs 19 to 22 which sets out the Council’s policy on charging borrowing to the revenue account; and

 

4.    Recommend that Council approve the Investment Strategy for 2017/18 and investment criteria as set out in paragraphs 23 to 37 and Appendix 1.

 


Meeting: 01/02/2017 - Finance Panel (Panel of the Scrutiny Committee) (Item 38)

38 Treasury Management Strategy 2017/18 pdf icon PDF 130 KB

 

Background Information

The Finance Panel asked for this item to be included on the agenda for pre-decision scrutiny.

Why is it on the agenda?

For the Panel to pre-scrutinise the Treasury Management Strategy.  The Panel may wish to make recommendations to the City Executive Board.  The Board will on 9 February 2017 be asked to recommend that Council approve:

1. the Treasury Management Strategy 2017/18, and adopt the Prudential Indicators for 2017/18 – 2019/20;

2. the Borrowing Strategy;

3. the Minimum Revenue Provision (MRP) Statement; and

4. the Investment Strategy for 2017/18.

Who has been invited to comment?

·         Nigel Kennedy, Head of Financial Services;

·         Bill Lewis, Financial Accounting Manager.

 

 

 

Additional documents:

Minutes:

The Financial Accounting Manager introduced the report.  He said the main changes were a change to the prudential indicators relating to increased borrowing to finance lending to the housing company, the enabling of borrowing in advance of need and the protection of the levels of non-specified investments.

 

In response to a question, the Panel heard that the council’s treasury advisors had advised that the Strategy should enable borrowing in advance, with some caveats.  Whether this would be desirable in practice was another matter and would be based on assessments about what was going to happen in future with interest rates and whether any expected savings from borrowing early would outweigh the ‘cost of carry’.  The Panel supported this change as a precautionary measure.