7 Treasury Management Strategy and Investment Strategy PDF 133 KB
Cabinet Portfolio Holder: Councillor Peter Butlin
The enclosed report has been considered by Cabinet and Council is recommended to give its final approval.
Additional documents:
Decision:
Resolved that:
1. The Treasury Management Strategy for 2020/21 (Appendix 1 to the report) be approved and that its provisions have effect from 1st April 2020.
2. The Investment Strategy for 2020/21 be approved (Appendix 2 to the report).
3. The Council require the Strategic Director for Resources to ensure that gross borrowing does not exceed the prudential level as specified in Appendix 1 Annex B to the report, taking into account current commitments, existing plans, and the proposals in the budget report.
4. The Council delegates authority to the Strategic Director for Resources to undertake all the activities listed in Appendix 1 Annex H of the report.
5. The Council requires the Strategic Director for Resources to implement the Minimum Revenue Provision Policy as specified in Appendix 1 Annex I to the report.
6. The Council notes the decision of the Leader to enable an option to make an early payment of pension fund contributions subject to the conditions set out at Section 7.24 of the Treasury Management Strategy being met
Minutes:
Councillor Peter Butlin explained that the report before Council had largely been written prior to the Covid-19 pandemic. Key features of the strategy included a proposal to borrow over a longer period n order to secure better returns, the spreading of risks across the entire council and further consideration of ethical investments that will support the Council’s climate emergency work.
Councillor Adrian Warwick seconded the recommendations and reserved the right to speak.
Councillor Keith Kondakor suggested that the Covid-19 pandemic will have changed the risk profile for the council. For example, property investments that previously promised good returns may no longer do so. Some councils, he added, have over invested in projects such as inter-council loans with some councils being placed in a difficult position owing to falling income.
Councillor Jerry Roodhouse welcomed the references to ethical investment adding that the evidence available suggested that interest in this area is likely to increase.
Councillor Adrian Warwick stated that the County Council is in a better position financially than many other local authorities.
Councillor Peter Butlin concluded by noting that ethical investments, like any other, must work for the benefit of the council.
A vote was held. The recommendations were agreed with one abstention and no votes against.
Resolved that:
1. The Treasury Management Strategy for 2020/21 (Appendix 1 to the report) be approved and that its provisions have effect from 1st April 2020.
2. The Investment Strategy for 2020/21 be approved (Appendix 2 to the report).
3. The Council require the Strategic Director for Resources to ensure that gross borrowing does not exceed the prudential level as specified in Appendix 1 Annex B to the report, taking into account current commitments, existing plans, and the proposals in the budget report.
4. The Council delegates authority to the Strategic Director for Resources to undertake all the activities listed in Appendix 1 Annex H of the report.
5. The Council requires the Strategic Director for Resources to implement the Minimum Revenue Provision Policy as specified in Appendix 1 Annex I to the report.
6. The Council notes the decision of the Leader to enable an option to make an early payment of pension fund contributions subject to the conditions set out at Section 7.24 of the Treasury Management Strategy being met