Issue - meetings

To consider report 101/10 of the head of finance. 

The Executive considered report 101/10 of the head of finance.  This reviewed the treasury management and investment strategy and recommended no change to the strategy for 2011/12 to 2013/14. 

The portfolio holder reported that the Audit and Governance Committee had considered the draft strategy also, recommending its adoption subject to rewording one element.  The committee had delegated authority to agree a suggested rewording of the investment counterparty selection criteria relating to ‘Banks 4’.  The report presented two alternative forms of wording the criteria; the Executive preferred the original. 

The Executive supported the draft strategy and recommended its adoption to the Council. 

RECOMMENDED

To recommend the Council to approve the following key elements:

(a)       the treasury management strategy 2011/12 to 2013/14, including the following wording in the investment counterparty selection criteria:

·        Banks 4 – The council’s own banker for transactional purposes if the bank falls below the criteria, although in this case balances will be minimised in both monetary size and time.

(b)       the treasury prudential indicators contained in paragraph 40 of the strategy;

(c)        the authorised limit Prudential Indicator, as shown in paragraph 6 of the strategy; and

(d)       the investment strategy 2011/12 contained in the treasury management strategy and the detailed criteria in Annex A1. 

To consider report 93/10 of the head of finance. 

The committee considered report 93/10 of the head of finance.  This outlined the council’s treasury management prudential indicators for 2011/12 and set out the expected treasury management operations for the year.  The committee was asked to review these and recommend approval to the Council via the Executive. 

Some councillors queried the strategy’s wording in paragraph 27.  This set out the criteria for providing high quality investment counterparties.  The councillors believed that the wording was unclear in the criterion ‘Banks 4’.  The officers reported that the intention was to authorise the council to take action if its transactional bank ever failed.  Councillors believed that this criterion needed redrafting to reflect that aim better and the committee delegated authority to agree new wording. 

The committee also noted that the council’s treasury management consultancy had transferred from Butlers to Sector Treasury Services Limited, another division of Butlers’ parent group company ICAP Securities Limited.  The officers reported that this had improved the quality of service to the council. 

RESOLVED

(a)       To authorise the section 151 officer, in consultation with the committee’s chair and Councillors Andrew Crawford and Michael Murray, to redraft the words in the criterion ‘Banks 4’ in paragraph 27 of the strategy;

(b)       To approve the following key elements and recommend these to the Executive and the Council:

(i)         the treasury management strategy 2011/12 to 2013/14 and the treasury prudential indicators contained in paragraph 40;

(ii)        the authorised limit prudential indicator as shown in paragraph 6 of the strategy; and

(iii)       the investment strategy 2011/12 contained in the treasury management strategy and the detailed criteria in Annex A1.