Issue - meetings

Treasury strategy - to recommend Council to approve the strategy

Meeting: 15/02/2023 - Council (Item 61)

61 Treasury Management and Investment Strategy 2023/24 pdf icon PDF 888 KB

The Joint Audit and Governance Committee, at its meeting on 31 January 2023, considered the report of the head of finance on the council’s treasury management and investment strategy for 2023/24. The committee made recommendations to Cabinet to approve the treasury management strategy, prudential indicators, and annual investment strategy.

 

Cabinet considered the recommendations at its meeting on 3 February 2023 and made recommendations to Council as set out below.

 

The report of the head of finance is attached.

 

RECOMMENDATION: to

 

1.    approve the head of finance’s report to Cabinet on 3 February 2023;

 

2.    approve the treasury management strategy 2023/24, as set out in appendix A to the report;

 

3.    approve the prudential indicators and limits for 2023/24 to 2025/26, as set out in appendix A to the report; and

 

4.    approve the annual investment strategy 2023/24, as set out in appendix A to the report,and the lending criteria detailed in table 6 in appendix A to the report.

 

Minutes:

Council considered Cabinet’s recommendations made at its meeting on 3 February 2023 on the council’s treasury management and investment strategy for 2023/24.  This set out how the council’s treasury service would support the financing of capital investment decisions, and how treasury management operated day to day.  The strategy also set out the prudential indicators, providing limits within which the treasury function must operate.  

 

Councillor Crawford, Cabinet member for finance highlighted the changes proposed to the strategy for 2023/24 as set out in paragraphs 10 and 11 of the report:

·       amend individual maximum counterparty limits for the higher credit rated counterparties, increasing the limits for LVNAV & VNAV Money Market Funds to £30 million

·       increase specified instruments counterparty limit for banks and building societies with a minimum F1, A- credit rating from £10 million to £15 million

·       increase non-specified instruments counterparty limit for institutions with a minimum credit rating of F1+, AA- from £10 million to £15 million

·       amend the minimum lending criteria, increasing the minimum asset value criteria for non-rated building societies from assets over £1 billion to assets over £2 billion  

 

Both Cabinet and the Joint Audit and Governance Committee had supported the strategy together with approving the prudential indicators and limits, and approving the annual investment strategy and lending criteria. 

 

 

RESOLVED: to

 

1.    approve the head of finance’s report to Cabinet on 3 February 2023;

 

2.    approve the treasury management strategy 2023/24, as set out in appendix A to the report;

 

3.    approve the prudential indicators and limits for 2023/24 to 2025/26, as set out in appendix A to the report; and

 

4.    approve the annual investment strategy 2023/24, as set out in appendix A to the report,and the lending criteria detailed in table 6 in appendix A to the report. 

 


Meeting: 03/02/2023 - Cabinet (Item 72)

72 Treasury management and investment strategy 2023/24 pdf icon PDF 887 KB

To consider the head of finance’s report. 

Minutes:

Cabinet considered the head of finance’s report on a draft treasury management and investment strategy for 2023/24.  This set out how the council’s treasury service would support the financing of capital investment decisions, and how treasury management operated day to day.  The strategy also set out the prudential indicators, providing limits within which the treasury function must operate. 

 

The Cabinet member for finance highlighted the following changes proposed to the strategy for 2023/24, which Cabinet was asked to recommend to Council:

·       amend individual maximum counterparty limits for the higher credit rated counterparties, increasing the limits for LVNAV & VNAV Money Market Funds to £30 million

·       increase specified instruments counterparty limit for banks and building societies with a minimum F1, A- credit rating from £10 million to £15 million

·       increase non-specified instruments counterparty limit for institutions with a minimum credit rating of F1+, AA- from £10 million to £15 million

·       amend the minimum lending criteria, increasing the minimum asset value criteria for non-rated building societies from assets over £1 billion to assets over £2 billion 

 

Cabinet noted that the Joint Audit and Governance Committee had supported the draft strategy and had recommended this to Cabinet, along with approving the prudential indicators and limits, and approving the annual investment strategy and lending criteria. 

 

Cabinet supported the changes to the strategy. 

 

RECOMMENDED to Council to:

 

(a)       approve the head of finance’s report to Cabinet on 3 February 2023;

 

(b)       approve the treasury management strategy 2023/24, as set out in appendix A to the report;

 

(c)        approve the prudential indicators and limits for 2023/24 to 2025/26, as set out in appendix A to the report; and

 

(d)       approve the annual investment strategy 2023/24, as set out in appendix A to the report,and the lending criteria detailed in table 6 in appendix A to the report. 


 

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