To review and to recommend to
the Council the adoption of the 15 statutory prudential indicators
and 8 local indicators for the period 2021/22 to 2024/25 together
with the 2022/23 Treasury Management Strategy.
(1)
That the Council be recommended:
(a)
to adopt the prudential indicators, as detailed in section
4.1 and appendix 1 of the report.
(b) to approve the
Treasury Management Strategy (including the treasury management
prudential indicators and the Investment Strategy), as set out
section 4 and appendix 3 of the report.
(c) to approve the
Minimum Revenue Provision policy in Appendix 2 of the
report.
(d) to adopt the
Treasury Management Practices in Appendix 4 of the
report.
(2)
That the extract of the minutes of the meeting of the Audit
Committee held on 1 February 2022, as set in Appendix 5 of the
report, be noted.
None.
The report set out the operation of
the Council’s prudential indicators, its treasury function
and its likely activities for the forthcoming year which
incorporated the following elements:
- Prudential Indicators – There
would be reporting against 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
– There would be reporting in accordance with the Minimum
Revenue Provision Policy, which set out how the Council would pay
for capital assets through revenue each year (as required by
regulation under the Local Government Act 2003).
- Treasury Management Strategy
– This set out how the Council’s treasury 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. This was the
Authorised Borrowing Limit required by Section 3 of the Local
Government Act 2003 and was in accordance with the CIPFA Code of
Practice on Treasury Management and the CIPFA Prudential Code.
- Investment Strategy –
This was included in the Treasury Management Strategy and set out
the criteria for choosing investments and limiting exposure to the
risk of loss, which was reported annually in accordance with
government investment guidance.