Issue - meetings

Treasury Management, Annual Investment and Minimum Revenue Provision Strategies 2015/16

 

 

Meeting: 21/01/2015 - Cabinet (Item 64)

64 Treasury Management, Annual Investment and Minimum Revenue Provision Strategies 2015/16 pdf icon PDF 430 KB

Deputy Leader and Cabinet Member for Strategy, Finance and Corporate Issues

Additional documents:

Minutes:

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“We always look to achieve the best value for money for our taxpayers and we do this by running an efficient county council.

 

By using our cash reserves rather than borrowing more, we have been able to achieve substantial savings in what remain challenging financial times.  This year we hope to make savings of around £1m.  Like many councils we continue to face serious financial pressures but it is positive news that through well-thought out decisions, we are able to make those kinds of savings. Any savings we can make is excellent news for Staffordshire taxpayers and will help us to focus our resources where they are most needed.”

 

Ian Parry, Deputy Leader and Cabinet Member for Strategy, Finance and Corporate Issues.

 

Reasons for the Decision – The Local Government Act 2003 requires a local authority to have regard to the Prudential Code and to set Prudential Indicators for the next three years to ensure that its capital investment plans are affordable, prudent and sustainable. The Prudential Indicators are approved as part of the Medium Term Financial Strategy (MTFS).  The Treasury Management Strategy is a key element of the MTFS as the planned capital expenditure programme drives the borrowing required.

 

Decision – (a) That, in accordance with the regulations, it be recommended to the County Council, at its meeting on the 19 March 2015, that the Annual Investment Strategy (AIS) 2015/16 (described in paragraphs 24 to 70 and as detailed in Appendices 2 and 4of the report) be adopted.

 

(b)That, as required by guidance, the following policies (as described in paragraphs 96 to 104 to the report) be approved;

 

i) review of the strategy;

ii) the use of external advisers; and

iii) training.

 

(c)That the proposed borrowing strategy for the 2015/16 financial year comprising:

 

  • the use of cash in lieu of borrowing required in 2015/16;
  • the use of cash to repay loans early, subject to market conditions;
  • as a contingency the ability to borrow new loans as a result of;
    • unexpected changes in the capital programme;
    • a reduction in the level of cash balances; or
    • the repayment of LOBO’s;
  • a forward borrowing strategy that will not be used in 2015/16; and
  • a loan rescheduling strategy that is unlimited where this re-balances risk,
  • The above to operate within the prudential limits set out in Appendix 5 to the report and in consultation with the Deputy Leader and Cabinet Member for Strategy, Finance and Corporate Issues with respect to early loan repayment, raising new loans and loan rescheduling;

 

be approved.

 

(d) That, in accordance with the regulations, it also be recommended to the County Council that the Minimum Revenue Provision (MRP) policy 2015/16 (as summarised in paragraphs 105 to 107; and as set out in full at Appendix 8 to the report), be adopted.