Issue - meetings

This report asks the Executive to recommend that Council approve an integrated Treasury Management Strategy Statement, the proposed Prudential Indicators for 2009/10 to 2013/14 and the use of the revised Treasury Management Policy and the Treasury Management Practices.

Note: The above report was slightly amended on 11 February 2009 to include two figures in paragraph 13 which were missing from the original published version.

RECOMMENDED: That Council approve:

(i)                 The Prudential Indicators for 2009/10, as set out in Annex A to the report;

(ii)               The proposed Treasury Management Strategy for 2009/10;

(iii)             The Specified and Non-specified investments schedule;

(iv)              The revised Treasury Management Policy and Treasury Management Practices, as set out in Annexes C and D.

REASON:      To enable the continued effective operation of the Treasury Management function and ensure that all Council borrowing is prudent, affordable and sustainable.

Members considered a report which asked them to recommend to Council an integrated Treasury Management Strategy Statement, proposed Prudential Indicators for the period 2009/10 to 2313/14, and use of the revised Treasury Management Policy and the Treasury Management Practices.

The Local Government Act 2003 required the Council to set out its treasury strategy for borrowing and to prepare an Annual Investment Strategy.   In doing so, the Council must have regard to the CIPFA Prudential Code and set Prudential Indicators for at least the next three years.  Copies of the Treasury Management Policy Statement and Practices documents, revised for the 2009/10 financial year, were attached as Annexes C and D to the report.  Copies of the Prudential Indicators and Specified and Non-Specified Investments were attached as Annexes A and B.

The Council was currently undertaking a series of significant capital schemes that would realise revenue savings over the next 30 years.  This would contribute to a rise in the Council’s underlying need to borrow, from the current level of £102m to over £146m in 2013/14.  The borrowing strategy aimed to minimise the risks of borrowing large amounts in a single year by giving flexibility to borrow in advance of need, so as to take advantage of favourable interest rates as they arose.  The annual investment strategy reviewed projected interest rates over the next three years and sought to maximise the returns to the Council whilst mimimising the risks involved in placing deposits on the money market.

RECOMMENDED: That Council approve:¹

(i)                 The Prudential Indicators for 2009/10, as set out in Annex A to the report;

(ii)               The proposed Treasury Management Strategy for 2009/10;

(iii)             The Specified and Non-specified investments schedule;

(iv)              The revised Treasury Management Policy and Treasury Management Practices, as set out in Annexes C and D.

REASON:      To enable the continued effective operation of the Treasury Management function and ensure that all Council borrowing is prudent, affordable and sustainable.