Issue - meetings

Following consideration by Cabinet on 25 January 2022 this report is presented to Council for approval.

Councillor Peter Butlin, Portfolio Holder for Finance and Property introduced and moved this report, noting that the external requirement to set a Treasury Management Strategy and Investment Strategy now had more significance due to the implications of the Warwickshire Property & Development Group and Warwickshire Recovery and Investment Fund.  Councillor Warwick seconded the motion.  There being no questions or comments on the report, Councillor Butlin thanked the finance teams for their excellent work and a vote was taken.

Vote

A vote was held. The motion was agreed unanimously

Decision

Resolved that:

1.     The Treasury Management Strategy for 2022/23 (Appendix 2 to the report) be approved with effect from 1st April 2022.

2.     The Investment Strategy for 2022/23 (Appendix 3 to the report) be approved with effect from 1 April 2022.

3.     The revised lending limits for the Warwickshire Property Development Group come into immediate effect (Appendix 3 to the report, Annex 7).

4.     The County Council requires the Strategic Director for Resources to ensure that gross borrowing does not exceed the prudential level specified (Appendix 2 to the report, Section 3.13, Table 10 “Authorised Borrowing Limit”).

5.     The County Council requires the Strategic Director for Resources to ensure that gross investment in non-Treasury investments does not exceed the prudential levels specified (Appendix 3 to the report, Annex 7).

6.     The County Council delegates authority to the Strategic Director for Resources to undertake delegated responsibilities in respect of both strategies (Appendix 2 to the report, Annex 7, and Appendix 3 to the report, Section 2.5).

The County Council requires the Strategic Director for Resources to implement the Minimum Revenue Provision (MRP) Policy (Appendix 2 to the report, Section 2.8-2.20).

Prior to consideration at Council on 8 February 2022 this report sets out the Treasury Management Strategy and Investment Strategy for Cabinet endorsement.

Cabinet Portfolio Holder – Councillor Peter Butlin

Councillor Peter Butlin (Deputy Leader of the Council) presented the Treasury Management Strategy and Investment Strategy for endorsement.  He noted that this was an annual report but that it held more significance this year due to the implications of the Warwickshire Property and Development Group and the Warwickshire Recovery and Investment Fund.

Councillor Jerry Roodhouse commented on the level of external debt and borrowing and the associated loan to value rates set out in the report which could result in significant pressure.  In response, Councillor Butlin advised that the £431m of external debt was well below the operation boundary of £590m which it was not expected debt should exceed and the authorised statutory limit was £709m which the council could not legally exceed.  Compared to other local authority borrowing profiles, Warwickshire was still in a strong comparative position.

Resolved:

That Cabinet recommends to Council that:

1.     The Treasury Management Strategy for 2022/23 (Appendix 2 to the report) be approved with effect from 1st April 2022.

2.     The Investment Strategy for 2022/23 (Appendix 3 to the report) be approved with effect from 1 April 2022.

3.     The revised lending limits for the Warwickshire Property Development Group come into immediate effect (Appendix 3 to the report at Annex 7).

4.     Council requires the Strategic Director for Resources to ensure that gross borrowing does not exceed the prudential level specified (Appendix 2 to the report, Section 3.13, Table 10 “Authorised Borrowing Limit”).

5.     Council requires the Strategic Director for Resources to ensure that gross investment in non-Treasury investments does not exceed the prudential levels specified (Appendix 3 to the report at Annex 7).

6.     Council delegates authority to the Strategic Director for Resources to undertake delegated responsibilities in respect of both strategies (Appendix 2 to the report at Annex 7, and Appendix 3 to the report at Section 2.5).

7.     Council requires the Strategic Director for Resources to implement the Minimum Revenue Provision (MRP) Policy (Appendix 2 to the report at Section 2.8-2.20).