Issue - meetings

Cabinet, at its meeting on 9 February 2018, will consider a report on the council’s treasury management strategy (TMS) for 2018/19 to 2020/21 and set out the expected treasury operations for this period.

The Joint Audit and Governance Committee considered the report at its meeting on 29 January 2018 and had not recommended any adjustments to the strategy. 

The report of the head of finance, which Cabinet will consider on 9 February 2018, is attached. Cabinet recommendations will be circulated to all councillors prior to the Council meeting.

Council considered Cabinet’s recommendations, made at its meeting on 9 February 2018, on the council’s treasury management strategy and investment strategy for 2018/19 to 2020/21.

The Joint Audit and Governance Committee considered the report at its meeting on 29 January 2018 and recommended that the head of finance should consult the co-chair of Joint Audit and Governance Committee before investing in any Non-UCITS Retail Scheme.  Cabinet supported the proposed strategy and the amendments as well as the recommendation of the Joint Audit and Governance Committee. 

RESOLVED: to

1.    approve the treasury management strategy 2018/19 set out in appendix A to the head of finance’s report to Cabinet on 9 February 2018; 

2.    approve the prudential indicators and treasury limits for the period 2018/19 to 2020/21 as set out in table 2, appendix A to the head of finance’s report to Cabinet on 9 February 2018; and

3.    approve the annual investment strategy set out in appendix A (paragraphs 18 to 59), subject to the head of finance consulting the co-chair of Joint Audit and Governance Committee before investing in any Non-UCITS Retail Scheme, and the lending criteria detailed in table 5 to the head of finance’s report to Cabinet on 9 February 2018. 

To consider the head of finance’s report. 

Cabinet considered the report of the head of finance, which recommended adoption of the treasury management and investment strategy 2018/19.  The council was required to adopt a strategy each year, setting out how the treasury service would operate and how it would support the council’s capital investment decisions.  It also set limitations on treasury management activity governed by the prudential indicators.  The strategy proposed the following changes:

Counterparty limits to be amended to:

·      raise the investment limit with building societies with assets over £1 billion to £4 million from £3 million 

·      raise the investment limit with building societies with assets over £3 billion to £5 million from £3.5 million 

·      raise the investment limit with building societies with assets over £5 billion to £7 million from £5 million 

·      raise the investment limit with institutions with a minimum F1 rating to £10 million from £7.5 million 

Investment type addition

Adding another investment type to allow the council wider choice of investment in the future as the pool of low risk counterparties reduced. 

·      To add Non-UCITS Retail Schemes (NURS) to the strategy with a limit of £3 million 

The Joint Audit and Governance Committee had considered the report and recommended that the head of finance should consult the co-chair of Joint Audit and Governance Committee before investing in any Non-UCITS Retail Scheme.  Cabinet supported the proposed strategy and the amendments as well as the recommendation of the Joint Audit and Governance Committee. 

RECOMMENDED: to Council to

(a)      approve the treasury management strategy 2018/19 set out in appendix A to the head of finance’s report to Cabinet on 9 February 2018; 

(b)      approve the prudential indicators and treasury limits for the period 2018/19 to 2020/21 as set out in table 2, appendix A to the head of finance’s report to Cabinet on 9 February 2018; and

(c)       approve the annual investment strategy set out in appendix A (paragraphs 18 to 59), subject to the head of finance consulting the co-chair of Joint Audit and Governance Committee before investing in any Non-UCITS Retail Scheme, and the lending criteria detailed in table 5 to the head of finance’s report to Cabinet on 9 February 2018.