Agenda item

Details of the Treasury Management Strategy 2016/17 were outlined. The Council currently had £177.4m of borrowing and investments of around £80m to £90m on average throughout the year. The underlying need to borrow was measured by the Capital Financing Requirement (CFR) while usable reserves were the underlying resources available for investment.  It was noted that the current strategy was to maintain borrowing and investments below their underlying levels.

The strategy contributed to the Five Year Plan outcomes by contributing to the Council’s financial planning and particularly Outcome 7 – the Council’s income and value of its assets will be maximised.

It was brought to Members attention that the Chartered Institute of Public Finance and Accountancy’s (CIPFA) prudential code for Capital Finance in Local Authorities recommended that the Authority’s total debt should be lower than its highest forecast CFR over the next three years. The Assistant Director, Finance and Audit, confirmed that the Council expected to comply with this recommendation during 2016/17.

A Member sought clarification regarding the Council’s investments. The Committee were informed that although the Council held a diverse investment portfolio, it did not directly invest in commodities.   

A Member asked about the level of assurance regarding the Council’s Ethical Investment Policy. Whilst there was a high level of confidence that the policy was being applied to all direct investments, it was not possible to verify all transactions with every institution to ensure compliance.

The draft Treasury Management Strategy 2016/17 was due to be considered by the Cabinet on 8^th February 2016.

Resolved  - That details of the Treasury Management Strategy 2016/17 be noted.