Issue - meetings

Members considered a report on the Draft Treasury Management Strategy, Minimum Revenue Provision Policy, Prudential Indicators and the Capital Investment Strategy.

The Corporate Finance Team Leader introduced the report, and highlighted the following points:

·         Incorporated into the report was the latest guidance from the Chartered Institute for Finance and Accountancy (CIPFA) and the Ministry for Housing, Communities and Local Government;

·         The Treasury Management Strategy looked at the borrowing strategy, which ensured consideration was given to the affordability and sustainability for the repayment of debt.

Also looked at was the Annual Investment Strategy, which aimed to provide security on investments, whilst considering liquidity, cashflow requirements and yield.  All were considered alongside the Authority’s risk appetite;

·         The General Fund Balance was estimated to be at £3.862 million by the end of 2022/23;

·         External debt by 2022/23 was estimated to be just over £44 million, with borrowing at £7 million.  Gross debt was estimated at just over £55 million;

·         The Minimum Revenue Provision Policy (MRP) had deviated from the guidelines.  This policy determined how prudential borrowing was repaid on an annual basis.

Following this introduction, Members asked questions of officers present.  Further information was provided:

·         In 2019/20 the revenue implication for the capital programme was a negative figure impacting on Council Tax.  In 2020/21 investments were largely infrastructure based; all of these planned infrastructure investments had limited income generating schemes.  As a result, the capital programme was increased;

·         £7 million remained in the capital programme, to be financed from borrowing.  Anticipated borrowing by the end of 2022/23 was £44 million; however the absolute limit would be £55 million;

·         It was very tough to accurately forecast cashflow due to uncertain elements, such as government grants.

RESOLVED to:

1)    Accept the Treasury Management Strategy, Prudential Indicators and Minimum Revenue Provision Policy 2020/21, and recommend them to Full Council;

2)    Note that the Capital Investment Strategy had been reviewed in conjunction with the Treasury Management Strategy.