Issue - meetings

The Executive Member for Resources and Internal Support submitted a report setting out the 2011/12 Treasury Management Strategy Statement and Annual Investment Strategy together with the proposed Prudential Indicators.  He advised Members that the Council was working closely with its advisers, Sector, in monitoring interest rates in order to maximise returns.

The joint meeting of Scrutiny Committees, at their meeting held on 18 January 2011, had supported the proposals.

The Executive commended the proposals as now detailed.

RECOMMENDED - that (A) the comments of the Joint Scrutiny Committees of 18 January 2011, be received;

(B)      the 2011/12 Treasury Management Strategy Statement and Annual Investment Strategy and Prudential Indicators for East Herts Council be approved; and

(C)      the Policy on Minimum Revenue Provision (MRP) as detailed at paragraph 2.12 of the report submitted, be approved.

The Executive Member for Resources and Internal Support reported on the Council’s Treasury Management Strategy.

The Council’s Annual Investment Strategy, as included in the report now submitted, set out the Council’s policies for managing its investments and for giving relative priority to the security and liquidity of investments as against investment returns.  The Council had recently approved the use of some structured deposits which involved maturity beyond that recommended by the Council’s treasury advisors following recommendations from Corporate Business Scrutiny Committee.

The Council needed to agree options for the Minimum Revenue Provision (MRP) (the provision to repay debt) annually.  Details of the options for capital expenditure on or after 1 April 2009 were given together with methods for repayment of borrowing for capital expenditure incurred before 1 April 2008.  The Committee decided to recommend the option/method detailed below to the Executive.

In response to a question, the Director of Internal Services explained the figure which was still included in the report for the sale of The Causeway office building.  The Leader of the Council explained that paying off another sum raised by a consortium of authorities had been thoroughly investigated but would be too expensive.

RESOLVED - that the Executive be informed that the Joint Scrutiny Committees consider that the Treasury Management Strategy Statement and Annual Investment and Prudential Indicators 2011/12 should be approved and the option/method recommended for the Minimum Revenue Provision in the report now submitted (Option 1 and Method 2) should be approved.