Issue - meetings

Treasury Management 2022/23

Meeting: 22/02/2022 - Cabinet (Item 106)

106 Treasury Management 2022/23 pdf icon PDF 172 KB

Report of the Cabinet Member for Finance and Corporate/Chief Finance Officer.

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Minutes:

Cabinet considered a report of the Portfolio Holder for Finance and Corporate which sought approval of the 2022/23 Treasury Management Strategy (TMS) set out in Appendix 1 of the report which outlined how the Council would meet the requirements of the relevant legislation, codes of practice and guidance that form the Prudential Framework.

 

Alternatives considered:

There were no feasible alternatives – all proposals were in accordance with the revised CIPFA Prudential Code and Code of Practice on Treasury Management, which was formally adopted by the Council and with Government guidance regarding the Treasury Management Strategy.

 

RESOLVED:

1.    That the annual Treasury Management Strategy for 2022/23 be recommended to Budget Council for approval with particular reference to:

a.    The objectives of treasury management contained in section 2 and Appendix A of the report;

b.    The forecasted capital financing / borrowing requirement in section 3.1.1 (table 2) and 3.1.2 (table 3) of the report;

c.    The Operational Boundary and Authorised Limit for debt contained in section 3.1.3 (table 4) of the report;

d.    The Council’s criteria for assessing the creditworthiness of counterparties for investments contained in section 3.2.1 with an emphasis on security of capital over return, noting the institutional investment limits in Table 8 (3.2.4) of the report;

e.    The additional Prudential and Treasury Indicators identified in section 3.4 of the report;

f.     The Minimum Revenue Provision Policy contained in section 3.5 of the report;

2.    It be recommended to Budget Council that delegated authority be given to the Chief Finance Officer in consultation with Cabinet Member for Finance and Corporate to approve a breach in the Operational Boundary and Authorised Limit where it would be advantageous to the Council (3.1.3 of the report);

3.    It be recommended to Budget Council that delegated approval be given to the Chief Finance Officer in consultation with the Cabinet Member for Finance and Corporate to temporarily suspend or amend the Council’s own creditworthiness criteria adjusting limits with individual counterparties, if appropriate, in response to significant and sudden changes (such as the Covid19 pandemic) or changes to financial institutions’ ratings as a result of global industry changes to the ratings system (paragraph 3.2.1 of the report).

 

Reasons for decision:

To gain Cabinet Members’ approval of the Treasury Management Strategy for submission to Full Council and to ensure that Cabinet Members were informed of and ensure adherence to the requirements of the Prudential Framework.

 


Meeting: 17/02/2022 - Corporate Overview and Scrutiny Committee (Item 73)

73 Treasury Management 2022/23 pdf icon PDF 172 KB

To scrutinise the proposed Treasury Management Strategy 2022/23.

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Minutes:

Consideration was given to the Treasury Management Strategy for 2022/23 which outlined how the Council would meet the requirements of the relevant legislation, codes of practice and guidance that formed the Prudential Framework.

 

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, yet being aware of the possibility of interest rate rises.

 

Members were advised that interest rates were currently low, but 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 treasury investment priorities would continue to place emphasis on security over return.

 

Overall the borrowing strategy was broadly similar to previous years, which had ensured that key objectives were met, whilst making a contribution via savings on the cost of borrowing to the overall budget position.

 

RESOLVED – That the report be noted.

 

 


Meeting: 10/02/2022 - Cabinet (Item 10.)

10. Treasury Management 2022/23 pdf icon PDF 172 KB

Report of the Cabinet Member for Finance and Corporate/Chief Finance Officer.

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Meeting: 08/02/2022 - Corporate Overview and Scrutiny Committee (Item 11.)

11. Treasury Management 2022/23 pdf icon PDF 172 KB

To scrutinise the proposed Treasury Management Strategy 2022/23.

Additional documents: