Cabinet:

1.               Approved the Treasury Management Strategy Statement (TMSS) 2019/20.

2.               Approved the Treasury Management and Prudential Indicators set out in Appendices 1 and 2 of this report.

3.               Approved the Annual Minimum Revenue Provision (MRP) Statement for 2019/20 set out in Appendix 7 of this report.

4.               Recommended the annual TMSS and MRP statements 2019/20 to Council for approval.

5.               Delegated future changes required to this Strategy to the Chief Operating Officer in consultation with the Cabinet Member for Finance and Property. This will provide the additional flexibility to swiftly respond to changing financial markets. 

Councillor Roger Ramsey, Cabinet Lead Member for Property and Finance presented the report to Cabinet.  The Treasury Management Strategy for 2019/20 is a statutory report and covers two main areas:

·       Capital Financing Proposals

The report summarises the Council’s Capital Expenditure plans and sets out the associated prudential indicators and these are detailed in Appendix 1.  The prudential indicators derive from the Council’s Capital Strategy and programme which are covered under separate reports on the Agenda.  The report specifies the Council’s minimum revenue provision (MRP) policy – how residual capital expenditure is charged to revenue over time.  This is the equivalent of the principal repayments on the Councils Loans.

·       Treasury Management Issues

The report details major treasury management matters which include:

·       The Treasury indicators which limit the treasury risk and activities of the Council.  These indicators are detailed in the report at Appendix 2

·       The prospects for interest rates which are set out in Appendix 3 of the report.

·       The Borrowing Strategy

·       The Investment Strategy

·       Creditworthiness Policy

The Council’s investment priorities will continue to be security first, portfolio liquidity second and the yield.

The Council is maintaining an under borrowed position.  This means that the Capital Borrowing need has not been fully funded with loan debt as cash supporting the Council’s reserves, balances and cash flow has been used as a temporary measure.  The TMS is continually monitored but is prudent as investment returns are currently low and counterparty risk is always an issue that needs to be considered.

Following discussion,

Cabinet:

1.               Approved the Treasury Management Strategy Statement (TMSS) 2019/20.

2.               Approved the Treasury Management and Prudential Indicators set out in Appendices 1 and 2 of this report.

3.               Approved the Annual Minimum Revenue Provision (MRP) Statement for 2019/20 set out in Appendix 7 of this report.

4.               Recommended the annual TMSS and MRP statements 2019/20 to Council for approval.

5.               Delegated future changes required to this Strategy to the Chief Operating Officer in consultation with the Cabinet Member for Finance and Property. This will provide the additional flexibility to swiftly respond to changing financial markets.