Issue - meetings

(A report by Christine Marshall, Deputy Chief Executive – Corporate Development (S151))

(Revised Appendix 2 attached)

The Treasury & Investments Manager (PSPSL) presented the Treasury Management Policy and Draft Strategy Statement for the 2025/26 financial year which sought consideration by the Committee. It was stressed that information in the Draft Treasury Strategy Statement was subject to change to reflect any changes made as part of the budget setting cycle. Members noted that following their scrutinising of the report any feedback would be submitted within the Annual Budget report to Cabinet on 19^th February 2025 and Full Council on 3^rd March 2025.

The Treasury & Investments Manager (PSPSL) highlighted the following key points:

·       Capital Strategy: a capital strategy report would be prepared, and included as a separate Appendix to the budget setting report to Cabinet and Council. This is in addition to the prudential and treasury indicators and various treasury strategy reports.

·       Training: Members with responsibility for treasury management were to receive adequate training, and the training needs of treasury management officers were periodically reviewed.

·       Treasury Management Consultants: The Council used Link Group as its external Treasury Management advisors.

·       Capital Expenditure and Financing Plans: The Council's capital expenditure plans and how those plans were financed were summarised. The funding requirements and borrowing needs were outlined.

·       Capital Financing Requirement (CFR): The Council's CFR, a measure of its indebtedness, was detailed, showing an increase from just under £17 million to just under £20 million over the next five years.

·       Core Funds and Investment Balances: The expected core funds and investment balances were presented, showing a reduction in reserve balances over the next five years.

·       MRP Policy: The MRP policy was discussed, with reference to the previous report on changes to statutory guidance.

·       Current Portfolio Position: As of December 31, the Council held investment balances of £57.7 million, with net Treasury investments of £56.7 million.

·       Borrowing Strategy: The Council was maintaining an under-borrowed position, which was prudent given the expected fall in medium and long-term borrowing rates.

·       Annual Investment Strategy: The criteria for investments, including specified and non-specified investments, were outlined. The Council's investment strategy aimed to maintain yields by investing long-term where possible.

·       Investment Return Expectations: The forecast for investment returns over the next five years was provided.

·       Prudential Indicators: The prudential indicators for capital expenditure, financing costs, and the Council's borrowing limits were detailed.

The recommendation was moved by Councillor David Scoot and seconded by Councillor Mike Gilbert.

RESOLVED:

That the report be noted and that any feedback be provided to Cabinet on 19^th February 2025 and Full Council on 3^rd March 2025 as part of the Annual Budget report.