Agenda item

(Cabinet Member with Special Responsibility Councillor Newman-Thompson)

Report of Chief Officer (Resources)  - Report to Follow

(Cabinet Member with Special Responsibility Councillor Newman-Thompson)

Cabinet received a report from the Chief Officer (Resources) which set out the 2016/17 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 StrategyinAppendixA,butthesewouldhavetobeconsideredinlightoflegislative, professionalandeconomicfactors,andimportantly,anyalternativeviewsregarding theCouncil’sriskappetite.Assuchnofurtheroptionsanalysisisavailableatthis time.

Furthermore,theStrategymustfitwithotheraspectsofCabinet’sbudgetproposals, suchasinvestmentinterestestimatesandunderlyingprudentialborrowing assumptions,feedinginto Prudential andTreasuryManagementIndicators.

The officer preferred option is toapprovetheframeworkasattached to the report,allowingforanyamendmentsbeingmade underdelegatedauthoritypriortoreferraltoCouncil.  ThisisbasedontheCouncil continuingtohavea lowriskappetiteregardingthesecurityandliquidityof investmentsparticularly,butrecognisingthatmoreflexibilityshouldhelpimprove returns,whilststilleffectivelymitigatingrisk.Itisstressedintermsoftreasuryactivity, thereisnoriskfreeapproach.Itisfeltthoughthatthemeasuressetoutabove provide a better,moreflexibleframeworkwithin which to workoverthecoming year.

Councillor Blamire proposed, seconded by Councillor Pattison:-

“That the recommendations, as set out in the report, be approved with recommendation (2) revised to include the Leader being given delegated authority to finalise the Treasury Management Framework.”

Councillors then voted:-

Resolved unanimously:

(1)That Cabinet approve in principle the policy change to increase the period to 60 years over which the Minimum Revenue Provision is charged, for expenditure incurred prior to 2008.

(2)   Thatthe Leader and FinancePortfolioHolderbegivendelegatedauthorityto finalisethe TreasuryManagementFramework,asupdatedforCabinet’sfinalbudget proposals,forreferralon to Council.

Officer responsible for effecting the decision:

Chief Officer (Resources)

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 seeks minor changes to the Council’s Treasury Management Policy and fits with the proposed Medium Term Financial strategy.