Issue - meetings

RESOLVED – that (A) the 2014/15 Treasury Management Strategy Statement and Annual Investment Strategy and Prudential Indicators for East Herts Council be approved; and

(B)   the Policy on Minimum Revenue Provision (MRP) be approved.

(see also Minute 550)

The Executive Member for Finance submitted a report setting out the 2014/15 Treasury Management Strategy Statement and Minimum Revenue Provision Policy Statement together with the proposed Prudential Indicators.  He also referred to the investment performance over the previous year.

The Executive noted that the Audit Committee, at its meeting held on 22 January 2014, had received the report. 

The Executive commended the proposals as now detailed.

RECOMMENDED – that (A) the 2014/15 Treasury Management Strategy Statement and Annual Investment Strategy and Prudential Indicators for East Herts Council be approved; and

(B)      the Policy on Minimum Revenue Provision (MRP) be approved.

The Executive Member for Finance submitted a report which set out the 2014/15 Treasury Strategy Statement and Annual Investment Strategy together with the setting of Prudential Indicators.

Members were advised that this report was one of the final stages of the budget setting process and was linked to the consolidated budget report recently considered by the joint meeting of Scrutiny Committees.

The Director of Finance and Support Services advised that CIPFA defined treasury management as the management of a local authority’s investments and cash flows, its banking, money market and capital market transactions as well as the effective control of the risks associated with those activities and the pursuit of optimum performance consistent with those risks.

Members were advised that the suggested treasury management strategy for 2014/15 was based upon the views of Officers relating to interest rates, as well as leading market forecasts provided by the Council’s treasury advisor.  Members were referred to paragraph 2.1 of the report for the areas that were covered by the strategy.

The Director advised that the Authority was currently looking at the use of both the Property Fund and also investments in property on a direct basis.  Members were advised that this approach continued to be explored but the aim was to have a balanced investment portfolio across all asset types. 

The Executive would consider the Treasury Management Strategy on 4 February 2014 alongside a report that outlined the progress to date in relation to the investment strategy.

In response to a number of comments from Members in respect of investments and treasury management, the Director stressed the importance of a balanced approach of long and short term investments and Members were reminded of the need for flexibility.

Members received the report.

RESOLVED – that the 2014/15 Treasury Management Strategy Statement and Annual Investment Strategy and the prudential indicators be received.