Issue - meetings

The Leader’s Portfolio

To consider report FIN/608 of the Chief Executive and Chief Accountant (s151 officer), which was referred to the meeting of the Overview and Scrutiny Commission on 30 January 2023.

RESOLVED

The Cabinet agrees to amend the prudential indicators in the Treasury Management Strategy 2023/2024 (FIN/608) as set out in Section 4 of report FIN608a before considering the recommendations contain within it.

That the Full Council be recommended to approve the following items:

a)         the Treasury Prudential Indicators and the Minimum Revenue Provision (MRP) Statement contained within Section 5.4 of report FIN/608.

b)         the Treasury Management Strategy contained within Section 6 of report FIN/608.

c)         the Investment Strategy contained within Section 7 of report FIN/608.

d)         the amended the prudential indicators in the Treasury Management Strategy 2023/2024 (FIN/608) as set out in Section 4 of report FIN608a 

Reasons for the Recommendations

The Council’s financial regulations, in accordance with the CIPFA Code of Practice for Treasury Management, requires a Treasury Management Strategy to be approved for the forthcoming financial year. This report complies with these requirements.

The Leader presented reports FIN/608 and FIN608a reports of the Chief Executive and Chief Accountant (s151 officer)on the Treasury Management Strategy for 2023/2024 which the Council was required to approve before the start of the financial year in accordance with the CIPFA Code of Practice for Treasury Management and the Council’s financial regulations.

Councillor T Belben presented the Overview and Scrutiny Commission’s comments on the report OSC/308 to the Cabinet following consideration of the matter at its meeting on 30 January 2023, which included requesting for further acronyms to be documented within finance reports, together with an explanation where appropriate.

Councillor Buck spoke as part of the discussion on the report including supporting the Commission request to have a breakdown of acronyms within report to aid Members consideration of the certainly financial reports. The Leader confirmed he would speak to Officers over the best way to address this matter for future reports.

RESOLVED

The Cabinet agrees to amend the prudential indicators in the Treasury Management Strategy 2023/2024 (FIN/608) as set out in Section 4 of report FIN608a before considering the recommendations contain within it.

That the Full Council be recommended to approve the following items:

a)         the Treasury Prudential Indicators and the Minimum Revenue Provision (MRP) Statement contained within Section 5.4 of report FIN/608.

b)         the Treasury Management Strategy contained within Section 6 of report FIN/608.

c)         the Investment Strategy contained within Section 7 of report FIN/608.

d)         the amended the prudential indicators in the Treasury Management Strategy 2023/2024 (FIN/608) as set out in Section 4 of report FIN608a 

Reasons for the Recommendations

The Council’s financial regulations, in accordance with the CIPFA Code of Practice for Treasury Management, requires a Treasury Management Strategy to be approved for the forthcoming financial year. This report complies with these requirements.

To consider report FIN/608 of the Chief Executive and Chief Accountant (s151 officer).

The Commission considered reports FIN/608 and FIN/608A of the Chief Executive and Chief Accountant (s151 officer)on the Treasury Management Strategy for 2023/2024 which the Council was required to approve before the start of the financial year in accordance with the CIPFA Code of Practice for Treasury Management and the Council’s financial regulations.

During the discussion with the Leader of the Council and Chief Accountant, the following points were expressed:

·         Recognition that the information was compiled from Q3 and budget reports which identified how the Council would finance the capital programme.  Any identified borrowing could either be externally or internal borrowing.  External borrowing could be long term through the Public Works Loan Board or short term with other local authorities.  Internal borrowing was against the Council’s existing reserves or balances.

·         Acknowledgement that external debt remained at £260,325,000 (all belonging to the HRA).  The first repayment was due back in March of £11m, followed by each subsequent March. Confirmation that no re-borrowing was needed for the first two years, but the strategy indicated that there would be a requirement to take out new borrowing in the future to fund the capital programme.

·         Confirmation that there were no proposed changes to the investment strategy from the previous year.  Investments were £129m at the beginning of the year, expected to fall to £89m by 31 March.

·         Confirmation that the income from leaseholders was initially documented as ‘other income’ within the HRA.

·         Request for further acronyms to be documented within finance reports, together with an explanation where appropriate.

·         Confirmation sought and explanation provided on the liability benchmark.

·         Recognition of the supplementary report as the amendment to the Budget and Council Tax Report (FIN/606A) would impact on the capital programme and prudential indicators in the Treasury Management Strategy. The amended recommendation (FIN/608A) enabled the financing of the revised capital programme.

RESOLVED

That the Commission noted the report together with the amended recommendation documented in the supplementary agenda and requested that the views expressed during the debate, were fed back to the Cabinet through the Commission’s Comment sheet.