Agenda item

(Cabinet Member with Special Responsibility Councillor Whitehead)

Report of Chief Officer (Resources)   (Report to follow)

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Officer (Resources) which set out the 2018/19 Treasury Management Framework for Cabinet’s approval and referral on to Council.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Cabinetmayputforwardalternativeproposalsoramendmentstotheproposed StrategyinAppendix B to the report,butthesewouldhavetobeconsideredinlightoflegislative, professionalandeconomicfactors,andimportantly,anyalternativeviewsregarding theCouncil’sriskappetite.Assuchnofurtheroptionsanalysisisavailableatthis time.

Furthermore,theStrategymustfitwithotheraspectsofCabinet’sbudgetproposals, suchasinvestmentinterestestimatesandunderlyingprudentialborrowing assumptions,feedinginto Prudential andTreasuryManagementIndicators. There are no options available regarding other components of the overall framework, as covered in Appendices C and D to the report.

The officer preferred option is to approvetheframeworkasattached to the report,allowingforanyamendmentsbeingmade underdelegatedauthoritypriortoreferraltoCouncil.  ThisisbasedontheCouncil continuingtohave a comparatively low riskappetiteregardingthesecurityandliquidityof investmentsparticularly,butrecognisingthat some flexibilityshouldhelpimprove returns,whilststilleffectivelymitigatingrisk.Itisstressed that intermsoftreasuryactivity, thereisnoriskfreeapproach.Itisfelt, however, thatthemeasuressetoutabove provide a fit for purposeframeworkwithin which to work, pending any update during the course of next year.

Councillor Whitehead proposed, seconded by Councillor Clifford:-

“That the recommendation, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)          That the Finance Portfolio Holder be given delegated authority to agree the Treasury Management Framework, as updated for Cabinet’s final budget proposals, for referral on to Council.

Officers responsible for effecting the decision:

Chief Officer (Resources)

Reasons for making the decision:

The proposed Treasury Management framework forms part of the Council’s Budget and Policy framework, and fits into the Medium Term Financial Strategy.