Issue - meetings

Purpose of Report

To review and recommend to Council for approval the adoption of the 15 statutory prudential indicators and eight local indicators for the period 2017/18 to 2020/21, together with the 2018-23 Treasury Management Strategy alongside the Medium Term Financial Strategy 2018-23.

Decision

That the Executive:

(1)       Recommends for approval by the Council the prudential indicators detailed in paragraph 4.1 and Appendix 1 of the report.

(2)       Recommends for approval by the Council the Treasury Management Strategy, including the treasury management prudential indicators and the Investment Strategy, as set out in paragraph 4.3 and Appendix 3 of the report.

Alternative Options Considered and Rejected

None.

Reason for Decision

The table set out at paragraph 2.1 of the report summarised the key prudential indicators which had been incorporated into the 2018/19 Treasury Management Strategy. It was reported that the projected capital expenditure would determine the capital financing or borrowing requirement, which would in turn determine the actual level of external borrowing taken and cash balances available for investment.

The report outlined the operation of the Council’s prudential indicators, its treasury function and its likely activities for the forthcoming year. It also incorporated four key Council reporting requirements, as follows:

·         prudential and treasury indicators – the reporting of the statutory prudential indicators together with local indicators, in accordance with the requirements of the CIPFA Prudential Code for Capital Finance in Local Authorities and the CIPFA Treasury Management Code of Practice;

·         Minimum Revenue Provision Statement – the reporting of the Minimum Revenue Provision Policy which set out how the Council would pay for capital assets through revenue each year;

·         Treasury Management Strategy – which set out how the Council’s treasury management activity would support capital decisions, the day-to-day treasury management and the limitations on activity through treasury prudential indicators. The key indicator was the authorised limit, the maximum amount of debt the Council could afford in the short term, but which would not be sustainable in the longer term;

·         Investment Strategy – this was included within the Treasury Management Strategy and set out the criteria for choosing investment counterparties and limiting exposure to the risk of loss.