Issue - meetings

Treasury Management and Investment Strategy Statements

Meeting: 07/02/2023 - County Council (Item 7)

7 Treasury Management and Investment Strategy Statements pdf icon PDF 129 KB

Additional documents:

Minutes:

Councillor Peter Butlin (Deputy Leader of the Council) introduced and moved this report, He noted that this was an annual report which had greater significance due to the implications of the Warwickshire Property and Development Group (WPDG) and the Warwickshire Rescue and Investment Fund (WRIF). A key aspect covered in the strategy was the intention to pre-pay the Council’s next 3 years’ pension fund contributions in April 2023, yielding a one-off gross benefit of £6.2m, through the pension fund being able to invest the pre-payment earlier to achieve a return equivalent to the discount provided.  Councillor Martin Watson seconded the motion.  There were no questions or comments on the report.

 

Vote

 

A vote was held. The motion was agreed unanimously

 

Resolved:

 

That:

 

1.     The Treasury Management Strategy for 2023/24 (Appendix 2 to the report) be approved with effect from 1st April 2023.

2.     The Investment Strategy for 2023/24 (Appendix 3 to the report) be approved with effect from 1st April 2023.

3.     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 3.22, Table 12 “Authorised Borrowing Limit”).

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

5.     The revised lending limits for the WRIF come into immediate effect (Appendix 3 to the report, Annex 7).

6.     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).

7.     The Council 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).

8.     The County Council requires the Strategic Director for Resources to implement the Minimum Revenue Provision (MRP) Policy (Appendix 2 to the report, Section 2.11).

9.     The County Council requires the Strategic Director for Resources to enact an early payment of pension fund contributions subject to the conditions set out in Appendix 1 to the report, Section 5.14 being met.

 


Meeting: 27/01/2023 - Cabinet (Item 4)

4 Treasury Management Strategy and Investment Strategy pdf icon PDF 129 KB

Prior to consideration at Council on 7 February 2023 this report sets out the Treasury Management Strategy and Investment Strategy for Cabinet endorsement.

 

Portfolio Holder – Councillor Peter Butlin

Additional documents:

Minutes:

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 which had greater significance due to the implications of the Warwickshire Property and Development Group (WPDG) and the Warwickshire Rescue and Investment Fund (WRIF). A key aspect covered in the strategy was the intention to pre-pay the Council’s next 3 years’ pension fund contributions in April 2023, yielding a one-off gross benefit of £6.2m, through the pension fund being able to invest the pre-payment earlier to achieve a return equivalent to the discount provided.

 

In response to a question from Councillor Jerry Roodhouse regarding the Council’s overborrowing position and the associated risk, Councillor Butlin advised that he was comfortable with the level of borrowing, which focussed on invest to save schemes.

 

Councillor Isobel Seccombe observed that unexpected events (eg Covid, the war in Ukraine and the associated outcomes of them both in terms of the price of energy and the increasing cost of living) were happening more frequently and it was important for the Council to take a wise view of finances as a result.

 

In terms of the proposed pre-payment of pension fund contributions, Councillor Andy Crump, noted the significant checks and balances that were required.  Overall, he considered this to be a good report.

 

Resolved:

 

That Cabinet recommends to Council that:

 

1.     The Treasury Management Strategy for 2023/24 (Appendix 2 to the report) be approved with effect from 1st April 2023.

2.     The Investment Strategy for 2023/24 (Appendix 3 to the report) be approved with effect from 1 April 2023.

3.     Council requires the Strategic Director for Resources to ensure that gross borrowing does not exceed the prudential level specified (Appendix 2 to the report, at Section 3.22, Table 12 “Authorised Borrowing Limit”).

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

5.     The revised lending limits for the WRIF come into immediate effect (Appendix 3 to the report at Annex 7).

6.     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).

7.     Council authorises 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).

8.     Council requires the Strategic Director for Resources to implement the Minimum Revenue Provision (MRP) Policy (Appendix 2 to the report at Section 2.11).

  1. Council requires the Strategic Director for Resources to enact an early payment of pension fund contributions subject to the conditions set out in Appendix 1 to the report at Section 5.14 being met.