Issue - meetings

In February 2012, the Council adopted the revised CIPFA Treasury Management in Public services Code of Practice 2011 Edition, which requires the Council to approve a Treasury Management Strategy before the start of each financial year and for this to be scrutinised by an individual / group of individuals or committee.

In addition, the Department for Communities and Local Government (CLG) issued revised guidance on local authority investments in March 2010 that requires the Council to approve an investment strategy before the start of each financial year.

This report fulfils the Council’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the CLG Guidance.

Councillors considered a report which fulfilled the Council’s legal obligation under the Local Government Act 2003 to approve a Treasury Management Strategy and an Investment Strategy before the start of each financial year, in accordance with the CIPFA Code and the CLG Guidance.

The report had also been scrutinised by the Corporate Audit Committee on 4^th February 2014.

On a motion from Councillor David Bellotti, seconded by Councillor Andy Furse, it was

RESOLVED (unan)

1.  To approve the actions proposed within the Treasury Management Strategy Statement (Appendix 1);

2.  To approve the Investment Strategy (Appendix 2);

3.  To approve the authorised lending lists detailed in Appendix 2 and highlighted in Appendix 3.

The Local Government Act requires the Council to set out its treasury strategy for borrowing and to prepare an Annual Investment Strategy, setting out the Council’s policies for managing its investments

Councillor Laming in an ad hoc statement said that as a member of the Corporate Audit Committee he was astonished at the skill and expertise possessed by Council finance staff, and would like to congratulate them for their excellent work.

Councillor Gerrish noted that although Councillor Bellotti had stated that the Council did not invest in the Eurozone, banks in Germany and the Netherlands appeared in the list of counterparties in Appendix 3 of the report. Councillor Bellotti explained that the Council did not invest in all the institutions listed in Appendix 3; it was a list of those who met the Council’s prudential criteria.

Councillor Bellotti in proposing the item explained that Treasury Management was about responsible borrowing and investing and about positioning the Council in relation to a number of factors, such as interest rates, the rate of growth and inflation.

Councillor Crossley seconded the proposal and said that the Council needed to keep its borrowing continually under review.

On a motion from Councillor Bellotti, seconded by Councillor Crossley, it was

RESOLVED (unanimously)

(1)  To recommend the actions proposed within the Treasury Management Strategy Statement (Appendix 1 of the report) to February Council for approval;

(2)  To recommend the Investment Strategy as detailed in Appendix 2 of the report to February Council for approval;

(3)  To recommend the changes to the authorised lending lists detailed in Appendix 2 of the report and highlighted in Appendix 3 of the report to February Council for approval;

And further;

(4)  To note the Treasury Management Indicators detailed in Appendix 1 of the report and delegate authority for updating the indicators prior to approval at Full Council on 18th February 2014 to the Divisional Director – Business Support and Cabinet Member for Community Resources, in light of any changes to the recommended budget as set out in the Budget Report elsewhere on the agenda for this meeting.