For the Committee to receive a report on the Treasury Management Strategy 2020/2021
The Chief Finance Officer presented the 2020/21 Treasury Management Strategy (TMS) which outlined how the Council would meet the requirements of the relevant legislation, codes of practice and guidance that form the Prudential Framework.
It was noted that the Treasury Management Strategy was the Council’s policy for ensuring that:
· Borrowing in the long term is undertaken for capital purposes
· Borrowing plans are affordable and achieve best value
· Total debt remains within our authorised limit and prudential indicators
· Risks are identified and controlled
· Cashflows are managed to ensure that the Council can meet its financial obligations
It was reported that the Council intended to maintain an under-borrowed position for the period covered by the Strategy, using its own internal balances to fund capital expenditure whenever possible but being aware of the possibility of interest rate rises. Members were reminded that Interest rates were currently relatively low and expected to rise slowly over the next three years. It was noted that the Council’s overall borrowing requirement increased over the period of the strategy.
The Committee were informed that the Council’s treasury investment priorities would continue to place emphasis on security over return. Minimum credit criteria would be set to ensure the creditworthiness of counterparties which would be closely monitored throughout the year to minimise risk. Limits were also placed on the amounts that can be placed with individual institutions and the durations of investments.
That the report be noted.