Issue - meetings

This report seeks the recommendation of Executive to Full Council for the approval of the Treasury Management Strategy and Prudential Indicators for the 2016/17 financial year.

Recommended:That Council approve:

(i)           The proposed Treasury Management Strategy for 2016/17 including the annual investment strategy and the minimum revenue provision policy statement;

(ii)          The Prudential Indicators for 2016/17 to 2020/21 in the main body of the report;

(iii)        The Specified and Non-Specified Investments schedule (Annex B) of the report;

(iv)        The Scheme of Delegation and the Role of the Section 151 Officer (Annex D) of the report;

(v)         The Council’s entry into the Framework Agreement and its accompanying schedules for the Municipal Bonds Agency, including the joint and several guarantee;

(vi)        Delegation of authority to the Director of Customer and Business Support Services as Section 151 Officer and the Assistant Director for Governance and ICT as Monitoring Officer to sign those documents, as appropriate, on behalf of the Council;

(vii)    Granting the Section 151 Officer delegated authority to agree amendments to the Framework Agreement as appropriate.

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

Consideration was given to a report which provided Members with information on the following which required Council approval:

·          Treasury management strategy statement for 2016/17 covering the two main areas of Capital and Treasury management Issues ;

·        Prudential indicators for 2016/17 to 2020/21

·        Municipal Bond Agency Framework Agreement

·        Specified and non-specified investments schedule at Annex B.

·        Treasury management scheme of delegation and role of the section 151 officer at Annex D of the report.

It was noted that the Council were required to receive, scrutinise via the Audit and Governance Committee and approve these reports each year.

At a strategic level, there were a number of treasury management options available that depended on the Council’s stance on interest rate movements. The report set out the Council’s stance and recommended the setting of key trigger points for borrowing and investing over the forthcoming financial year.

Consideration was also given to the Audit and Governance Committee’s recommendations to the Executive in relation to the Council’s Treasury Management Strategy, circulated at the meeting. Officers reiterated that the Council only invested in money market funds or directly with banks and building societies, it had very little information as to where these counterparties placed their funds.

Members acknowledged that further information on the implications of implementing an ethical investment policy were required and that, if felt necessary, scrutiny of the issue should be undertaken.

Recommended:That Council approve:

(i)           The proposed Treasury Management Strategy for 2016/17 including the annual investment strategy and the minimum revenue provision policy statement;

(ii)          The Prudential Indicators for 2016/17 to 2020/21 in the main body of the report;

(iii)        The Specified and Non-Specified Investments schedule (Annex B) of the report;

(iv)        The Scheme of Delegation and the Role of the Section 151 Officer (Annex D) of the report;

(v)         The Council’s entry into the Framework Agreement and its accompanying schedules for the Municipal Bonds Agency, including the joint and several guarantee;

(vi)        Delegation of authority to the Director of Customer and Business Support Services as Section 151 Officer and the Assistant Director for Governance and ICT as Monitoring Officer to sign those documents, as appropriate, on behalf of the Council;

(vii)    Granting the Section 151 Officer delegated authority to agree amendments to the Framework Agreement as appropriate. ^1.

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