Decision details

Treasury Strategy 2018/19

Decision Maker: Executive, Council

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Decisions:

The Executive received a report detailing the proposed Treasury Management Strategy and the Treasury Management Indicators for 2018/19, plus the Minimum Revenue Provision policy statement and estimated minimum revenue provision payment table.

 

The report fulfilled the Council’s legal obligation under the Local Government Act 2003 to have regard to both the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice, and the Department for Communities and Local Government Guidance on Local Authority Investments.

 

The Council invested and borrowed large sums of money and was, as a result, exposed to financial risks which included the revenue impact of changing interest rates and the loss of part or all invested funds. The successful identification, monitoring and control of risk were, therefore, central to the Council’s Treasury Management Strategy.

 

In accordance with the CLG Guidance, any changes required to the approved Treasury Management Indicators and Strategy would be reflected in future reports for the Executive and the Council to consider.

 

The budget for investment income in 2018/19 was £160,000 calculated as a average return of 1.1% on a £14.5m portfolio.   £2.2m had been budgeted for interest payments calculated as average cost of 2% on a debt of £111m. These figures were influenced by changes to interest rates, levels of debt and investment funds.

 

The proposed Corporate Capital Programme for 2018/19 – 2019/20 would need to be funded by borrowing or out of revenue due as the Council did not hold any capital receipts.

 

RECOMMENDED to Council the adoption of

 

(i)          the Treasury Management Strategy for 2018/19 as set out in the agenda report;

(ii)        the Treasury Management Indicators for 2018/19, as set out at Annex C to the agenda report; and

 

(iii)      the Minimum Revenue Provision policy statement and estimated Minimum Revenue Provision payment table, as set out at Annex F to the agenda report.

 

 

Report author: Kelvin Menon

Publication date: 21/02/2018

Date of decision: 06/02/2018

Decided at meeting: 06/02/2018 - Executive

Accompanying Documents: