Issue - meetings

RECOMMENDED:      That Council approve:

1)      The Treasury Management Strategy Statement 2020/2021, including treasury indicators for 2020-2024.

2)      The Minimum Revenue Provision Policy 2020/2021

3)      The Investment Strategy 2020/2021

Reason for the Decision

The Council must have approved a Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement and Annual Investment Strategy 2020/2021 by 31 March 2020.

T Stankley, the Section 151 Officer presented the report which explained that the Council was required to receive and approve a Treasury Management Strategy Statement; Annual Investment Strategy; and Minimum Revenue Provision Policy Statement which covered:

·       The Treasury Management Strategy

·       Capital plans, including prudential indicators

·       A Minimum Revenue Provision (MRP) Policy

·       An Investment Strategy

The report covered the requirements of the Local Government Act 2003, the Chartered Institute of Public Finance Accountants (CIPFA) Prudential Code, the Ministry of Housing, Communities and Local Government (MHCLG) MRP Guidance, the CIPFA Treasury Management Code and the MHCLG Investment Guidance.

The Council’s Treasury Advisor, Link Asset Services, provided a template document for the Treasury Management Strategy Statement, which was fully compliant with CIPFA’s code and MHCLG’s guidance.  The Council had used this template in preparing the report.

This report looked at the period 2019-2024, which fitted with the Council’s Financial Plan and Capital Programme. Officers of the council had prepared the report based on their views of forecasts for interest rates, and had used information provided by the council’s Treasury Management Advisor, Link Asset Services.

Under standing order 34, Councillor Kemp asked if the KLIC loan impairment was included within the Statement of Accounts.  The S151 Officer explained that the adjustment entries would be finalised in the near future and included in the final version of the Statement of Accounts for 2018/19.  The Leader confirmed it would form part of the year’s audit, and the Council had the building and were receiving income from it.

Under standing order 34, Councillor Morley asked members to consider the estimate of capital expenditure in 2019/2020 and the likelihood of being able to spend it within the timeframe left for the year, as the impact on the revenue budgets may be high.

Councillor Long responded that this was referring to the Capital Programme, but it was normal that items would slip from the Capital Programme into future years, but it was important to ensure it was covered.  He also referred to the Council’s investment history and drew attention to the fact that the Council had the lowest risk profile in Norfolk, but was receiving a higher rate of return than many others.  He further commented that in order to do the best for West Norfolk, getting the best out of treasury management was important.

RECOMMENDED:   That Council approve:       

1)     The Treasury Management Strategy Statement 2020/2021, including treasury indicators for 2020-2024.

2)     The Minimum Revenue Provision Policy 2020/2021

3)     The Investment Strategy 2020/2021

Reason for the Decision

The Council must have approved a Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement and Annual Investment Strategy 2020/2021 by 31 March 2020.