Decision details

(Cabinet Member with Special Responsibility Councillor Langhorn)

The Head of Financial Services presented a report which set out the position regarding the 2011/12 to 2013/14 Treasury Management Strategy for Cabinet’s approval.

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

As part of the adoption of the CIPFA Code of Practice on Treasury Management (2009) it is a statutory requirement that the Authority has aTreasury Management Strategy Statement and Investment Strategy.  In this regard, Cabinet may put forward alternative proposals or amendments to the proposed documents, but these would have to be considered in light of legislative, professional and economic factors, and importantly, any alternative views regarding the Council’s risk appetite.  As such, no further options analysis is available at this time.

Furthermore, the Strategies must fit with other aspects of Cabinet’s budget proposals, such as investment interest estimates and underlying prudential borrowing assumptions, feeding into Prudential and Treasury Management Indicators.  It should be noted that the Prudential Indicators were also covered in the Budget report elsewhere on the agenda.

The Officer Preferred Options were reflected in the recommendations to the report.  This is based on the Council continuing to have a low risk appetite regarding investments, and it takes into account the requirements of the Code.

Councillor Langhorn proposed, seconded by Councillor Kerr:-

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

Councillors then voted:-

Resolved unanimously:

(1)        That the monitoring report as set out at Appendix A to the report be noted and referred on to Council for information.

(2)        That Council be recommended to approve the Treasury Management Strategy for the period 2011/12 to 2013/14 as set out in Appendix B, to the report, incorporating the Investment Strategy and Treasury Management Indicators, and as updated for Cabinet’s final budget proposals.

Officers responsible for effecting the decision:

Head of Financial Services

Reasons for making the decision:

As part of the adoption of the CIPFA Code of Practice on Treasury Management it is a statutory requirement that the authority has a Treasury Management Strategy Statement and Investment Strategy.  The decision based on the Council continuing to have a low risk appetite regarding investments, takes into account the requirements of the Code.