Decision - ANNUAL TREASURY MANAGEMENT STRATEGY INCLUDING PRUDENTIAL CODE INDICATORS 2020/21

Decision details

ANNUAL TREASURY MANAGEMENT STRATEGY INCLUDING PRUDENTIAL CODE INDICATORS 2020/21

Decision Maker: Audit Committee

Decision status: For Determination

Is Key decision?: No

Is subject to call in?: No

Decision:

The Assistant Director (Finance and Estates) presented a report which would be recommended to Council at its meeting on 26 February 2020 seeking approval of the Treasury Management Strategy 2020/21 including its Annual Investment Strategy and the prudential indicators.

 

In response to Members’ questions, the Assistant Director (Finance & Estates) replied:

 

·           The Treasury Management Strategy contained sufficient flexibility to allow borrowing to fund the Bus Station Re-location project should Growth Deal 3 funds be not forthcoming, however this would have a financial impact to be addressed elsewhere;

·           It was anticipated that the second phase of the Queensway scheme would commence in Spring 2021; and

·           There was an update on cash balances held and although projected £50.7Million at year end, the Assistant Director (Finance and Estates) pointed Members to the Final Capital Strategy report which showed in a chart that higher balances were required to be held now for the Housing Revenue Account (HRA) as HRA balances reduce close to minimum balances in the middle of the HRA Business Plan. In addition a proportion of the balances relate to provisions and third party balances.

 

The Assistant Director (Finance & Estates) acknowledged Members’ requests for additional general audit training and a further session on treasury management.  She commented that she intended to an All Member training session on Financial Risks in late March/early April 2020, to ensure that Members were fully aware of the challenging General Fund position going forward, which the Committee welcomed.

 

At a Member’s request, the Assistant Director undertook to consider the inclusion of trends in risk management in the year end Risk Management report.

 

The Chair asked for an item to be included on the Committee’s Work Plan for 2020/21 in respect of the allocation of Section 106 monies.

 

It was RESOLVED:

 

1.         That the Treasury Management Strategy 2020/21 be recommended to the Executive and Council for approval.

 

2.         That the draft prudential indicators for 2020/21 be approved.

 

3.         That the minimum revenue provision policy be approved.

 

4.         That an increase to the maximum level of long term (invested for longer than 12 months) investments from £10Million to £20Million when cash balances are higher than £30Million be approved.

Publication date: 03/02/2020

Date of decision: 03/02/2020

Decided at meeting: 03/02/2020 - Audit Committee

Accompanying Documents: