Issue - meetings

The Cabinet Member for Finance, Growth and Investment presented the draft Treasury Management Strategy Statement (TMSS) for 2017/18 which set out the Councils borrowing, investment and funding plans for the year ahead.

The TMSS included a proposal to provide a loan of up to £3.5m to Be First, the Council-owned company that would be responsible for all aspects of the Council’s regeneration agenda including the delivery of circa 2,000 new homes each year for the next 20 years.  The Cabinet Member commented that as well as the regeneration benefits that such a level of development would bring to the Borough, the Council would also benefit from increased New Homes Bonus and additional Council Tax revenue.

The Assembly resolved to adopt the Treasury Management Strategy Statement for 2017/18 and in doing so, to:

- Note the current treasury position for 2017/18 and prospects for interest rates, as referred to in section 6 of the report;

- Approve the Council’s Borrowing Strategy, Debt Rescheduling Strategy and Policy on borrowing in advance of need for 2017/18 as referred to in section 9 of the report;

- Approve the Annual Investment Strategy and Creditworthiness Policy for 2017/18 outlining the investments that the Council may use for the prudent management of its investment balances, as set out in Appendix 1 to the report;

- Approve the Authorised Borrowing Limit of £902m for 2017/18, representing the statutory limit determined by the Council pursuant to section 3(1) of the Local Government Act 2003, as set out in Appendix 3 to the report;

- Approved the Treasury Management Indicators and Prudential Indicators for 2017/18, as set out in Appendix 3 to the report;

- Approved the Minimum Revenue Provision Policy Statement for 2017/18, representing the Council’s policy on repayment of debt, as set out at Appendix 4 to the report;

- Maintain the delegated authority to the Chief Operating Officer, in consultation with the Cabinet Member for Finance, Growth and Investment, to proportionally amend the counterparty lending limits agreed within the Treasury Management Strategy Statement to take account of any increase in cash from borrowing and any subsequent decrease in cash balances as payments are made to the Special Purpose Vehicle;

- Agree to review the delegated responsibility as part of the 2017/18 Treasury Management Outturn Report;

- Approve a loan of up to £3.5m to Be First, which is the new Council-owned company to manage the delivery of the Borough regeneration agenda;

- Approve a loan of up to £150,000 for Traded Services;

- Agree to delegate authority to the Chief Operating Officer, in consultation with the Cabinet Member for Finance, Growth and Investment, to agree contractual terms, including the rate, duration and security as part of the loan agreements with Be First and Traded Services; and

- Note that further reports would be presented to the Cabinet in the event that the required working capital loans for Be First and Traded Services exceed the limits set out above.

The Cabinet Member for Finance, Growth and Investment presented the draft Treasury Management Strategy Statement (TMSS) for 2017/18 which set out the Council’s borrowing, investment and funding plans for the year ahead.

The TMSS included a proposal to provide a loan of up to £3.5m to Be First, the Council-owned company that would be responsible for all aspects of the Council’s regeneration agenda including the delivery of circa 2,000 new homes each year for the next 20 years.  The Cabinet Member commented that as well as the regeneration benefits that such a level of development would bring to the Borough, the Council would also benefit from increased New Homes Bonus and additional Council Tax revenue. 

The Cabinet Member also referred to the economic issues that had, and continued to, influence borrowing decisions and interest earnings and he placed on record his appreciation of the work of the Council’s Treasury Management team during the year. 

The Cabinet resolved to recommend the Assembly to adopt the Treasury Management Strategy Statement for 2017/18 and, in doing so, to:

(i)  Note the current treasury position for 2017/18 and prospects for interest rates, as referred to in section 6 of the report;

(ii)  Approve the Council’s Borrowing Strategy, Debt Rescheduling Strategy and Policy on borrowing in advance of need for 2017/18 as referred to in section 9 of the report;

(iii)  Approve the Annual Investment Strategy and Creditworthiness Policy for 2017/18 outlining the investments that the Council may use for the prudent management of its investment balances, as set out in Appendix 1 to the report;

(iv)  Approve the Authorised Borrowing Limit of £902m for 2017/18, representing the statutory limit determined by the Council pursuant to section 3(1) of the Local Government Act 2003, as set out in Appendix 3 to the report;

(v)  Approve the Treasury Management Indicators and Prudential Indicators for 2017/18, as set out in Appendix 3 to the report;

(vi)  Approve the Minimum Revenue Provision Policy Statement for 2017/18, representing the Council’s policy on repayment of debt, as set out at Appendix 4 to the report;

(vii)  Maintain the delegated authority to the Chief Operating Officer, in consultation with the Cabinet Member for Finance, Growth and Investment, to proportionally amend the counterparty lending limits agreed within the Treasury Management Strategy Statement to take account of any increase in cash from borrowing and any subsequent decrease in cash balances as payments are made to the Special Purpose Vehicle;

(viii)  Agree to review the delegated responsibility as part of the 2017/18 Treasury Management Outturn Report;

(ix)  Approve a loan of up to £3.5m to Be First, which is the new Council-owned company to manage the delivery of the Borough regeneration agenda;

(x)  Approve a loan of up to £150,000 for Traded Services;

(xi)  Agree to delegate authority to the Chief Operating Officer, in consultation with the Cabinet Member for Finance, Growth and Investment, to agree contractual terms, including the rate, duration and security as part of the loan agreements with Be  ...  view the full minutes text for item 97