Issue - meetings

Received and noted this report introduced by the Corporate Director of Finance and Resources (CDFR).

It was further noted that:

(i)  the authorised borrowing limit of £257m was not the amount of money that would be borrowed in 2011/12 but that determining a borrowing limit is a legal requirement pursuant to Section 3(1) of the Local Government Act 2003;

(ii)  the indicators did not include the Housing Revenue Account nor funding for decent homes;

(iii)  the Public Works Loan Board (PWLB) is a statutory body that provides loans to local authorities.  As part of the Government's Spending Review, the lending rate was increased by 1%, creating a situation where the private sector is offering similar rates.

Agreed to approve the Treasury Management Strategy for 2011/12 (this document) and within this document the following:

1.  The current treasury position for 2010/11 and prospects for interest rates:

2.  The Authorised borrowing limit of £257m for 2011/12, which will be the statutory limit determined by the Council, pursuant to section 3(1) of the Local Government Act 2003;

3.  The Borrowing Strategy, Borrowing Requirement Strategy, Borrowing Requirement  Debt Rescheduling Strategy and Policy on borrowing in advance of need for 2011/12; 

4.  The Minimum Revenue Policy Statement for 2011/12 which sets out the Council’s policy on repayment of debt;

5.  The Annual Investment Strategy and creditworthiness policy for 2011/12 (Appendix B to the report), which outlines the investments that the Council may use for the prudent management of its investment balances. It also includes details of benchmarks set for external managers. The power is delegated to the Chief Financial Officer to change these benchmarks as required;

6.  The Treasury Management Indicators and Prudential Indicators for 2011/12 (Appendix A to the report);

7.  Treasury Management Principles, areas of responsibility and frequency as required by the Revised Code of Practice for Treasury Management 2011/12(Appendix C to the report) as well as the key reporting requirements as required by the Code (Appendix D to the report); and

8.  The Housing Reform and effects on treasury management Housing Revenue Account Reform and Impact on Treasury Management.

Noted that this issue will now be considered at our meeting on 15 March 2011.