Issue - meetings

To receive and approve the Treasury Management Strategy, endorsed by the Corporate Services Scrutiny Committee on 24 January 2017 and due to be considered by Cabinet on 10 February 2017.

The Council considered the recommendations of the Cabinet and Corporate Services Scrutiny Committee held on 10 February and 24 January 2017 respectively relating to the adoption by the County Council of the proposed Treasury Management Strategy for 2017/18, prior to determination of the budget for that year.

The Leader of the Council MOVED and Councillor Clatworthy SECONDED that the recommendation of the Cabinet and of the Corporate Services Scrutiny Committee be approved and the Treasury Management and Investment Strategy for 2017/18 commended at Minutes 148 and *33 of the above respectively, be endorsed.

The motion was put to the vote and, nem com, declared CARRIED.

Report of the County Treasurer (CT/17/08) on the Treasury Management Strategy 2017/2018, attached.

The Committee considered the Report of the County Treasurer (CT/17/08) on the proposed Treasury Management and Investment Strategy for the 2017/18 financial year, prepared in accordance with the revised CIPFA Code of Practice for Treasury Management in the Public Services, adopted by the Council in February 2016, to be submitted to the Cabinet and the County Council for ratification following consideration by this Committee.

The Strategy, set out in full at Appendix 1 to the Report, set out the policies and plans to be adhered to in the coming year, dealing with such matters as the Minimum Revenue Provision (MRP) policy, capital expenditure funding, prudential indicators, the current treasury position, debt and investments; prospects for interest rates; the borrowing strategy; and the investment strategy.

Members noted that the MRP policy had not been changed from that adopted for 2016/17. In addition (and since 2009), the Council had followed a policy of containing the capital programme, with no new external borrowing and repaying debt whenever possible (without financial penalty).

The reduction in the base rate from 0.5% to 0.25%, meant the target return for deposits with banks / building societies was reduced from 0.65% to 0.40%, reflecting the current low interest rates on offer from the Council’s counterparties, therefore the target rate for the CCLA

Property Fund remained at 4.50%.

Members discussed and asked questions on the Councils view of the impact of Brexit, clarification on the investment limits and caps of the CCLA Property Fund and how other Local Authorities managed any such like fund, the flexibility within funds that allowed the Council to move investments and whether PFI schemes were included with debt figures and the need for robust contractual arrangements.

Officers would also check the figures outlined in the 2017/2018 column of tables 1,2 and 3, which appeared slightly out of kilter (thought to be due to the rounding up and down of figures).

It was MOVED by Councillor  Knight, SECONDED by Councillor Ball, and

RESOLVED that the Treasury Management Strategy 2017/18 be endorsed and commended to the Cabinet and County Council.