Treasury Management Policy & Strategy 2021-22
Meeting: 21/01/2021 - Council (Item 11)
Report of Councillor Sarah Suggitt, Executive Member for Governance & Maxine O’Mahony, Executive Director, Strategy & Governance.
This report was discussed at the Governance & Audit Committee meeting on 17 December 2020 and recommended to Full Council for approval.
- Appendix A, item 11 PDF 136 KB
- Appendix B, item 11 PDF 91 KB
- Appendix B1, item 11 PDF 63 KB
- Appendix B2, item 11 PDF 176 KB
- Appendix C, item 11 PDF 286 KB
- Appendix D, item 11 PDF 64 KB
This report was discussed under agenda item 9 (see Minute No. above).
After being duly proposed and seconded and subject to one abstention, it was:
1) the Treasury Management Strategy 2021-22 to 2023-24 at Appendix A of the report be approved;
2) the Minimum Revenue Provision (MRP) statement contained within Appendix A of the reportwhich sets out the Council’s policy on MRP, be approved;
3) the Prudential & Local Indicators and limits contained within Appendix A of the report(Tables 1-11) be approved;
4) the Investment Strategy 2021-22 (Appendix B) and the detailed criteria included in Appendix B1 of the report be approved; and
5) the Treasury Management Policy at Appendix B2 of the report be approved.
Report of Maxine O'Mahony, Executive Director for Strategy & Governance.
- Appendix A, item 55 PDF 136 KB
- Appendix B, item 55 PDF 91 KB
- Appendix B1, item 55 PDF 63 KB
- Appendix B2, item 55 PDF 176 KB
- Appendix C, item 55 PDF 286 KB
- Appendix D, item 55 PDF 64 KB
The Chief Accountant presented her final report which outlined the Treasury Management Policy & Strategy for 2021-22.
The recommendations to Full Council were highlighted.
The report was a little earlier than usually reported and the reason for this was explained.
Page 69 of the agenda pack under section 1.5 provided Members with a detailed summary of the key issues and changes made to the policies and strategies. It was noted that the only changes that had been made were the numbers in the tables in respect of the Council’s draft budget.
The Chairman asked if seeing this report earlier would cause any detrimental effects to the Council. The Chief Accountant explained that no detrimental effects would be caused in terms of the Policy itself the only potential change was that draft budget figures were being used; therefore, when the mid-year report was discussed at the Governance & Audit Committee in December next year there could be slightly larger variances compared to the final budget figures.
Additionally, the Chairman asked if there were any particular risks that the Committee should be considering bearing in mind the year that the Council had just had. It was explained that the main risk was the lack of ability to place monies anywhere without negative interest rates but as the majority had been resolved this should not be classed as an issue going forward.
The Vice-Chairman asked a question about the process in extending or using the Council’s overdraft of £2m. Members were informed that as part of this Policy, if approved by the Committee and the Full Council, no formal approval was needed to use it; however, it would be signed off by herself as the Chief Accountant & Deputy S151 Officer before it was implemented and she would need to be confident that it was the best value for money compared to borrowing from, for example, the Public Works Loan Board (PWLB).
Councillor James asked a question under section 1.4 of the report where it stated that an extension to the current arrangement was being negotiated and asked if this was in the context of the pandemic. The Chief Accountant explained that this had nothing to do with Covid, it was about the contractual arrangements coming to an end. There were very few people who offered this service and, as a consequence, the Finance Team had been liaising with the Council’s Procurement Team to extend the current contract with Link Asset Services, the Council’s external Treasury |management Advisors.
Mr Plaskett, the Lay Advisor to the Committee asked the following questions:
On page 69, under section 1.5 of the report, it stated that the Council had a borrowing need for 2020-21 but he had noticed somewhere else in the report that there was no borrowing requirement for this year. The Chief Accountant explained that this one of the oddities of the reporting on the Prudential Indicators and explained that in numbers the Council did have a borrowing need against its capital but because the Council had ... view the full minutes text for item 55