The Interim Head of Finance and Section 151 Officer submitted a report, the purpose of which, was to present to Council the Treasury Management Strategy 2020-21 (Appendix A to the report) which includes the Treasury Management Indicators, and the Capital Strategy 2020-21 to 2029-30 (Appendix B) which includes the Prudential Indicators for approval.

The Treasury Management Strategy 2020-21 confirmed the Council’s compliance with the Treasury Management in the Public Services: Code of Practice. It also fulfils the Council’s legal obligation under the Local Government Act 2003 to have regard to both the CIPFA Code and the Welsh Government Guidance.

She advised that, the Treasury Management Strategy is an integrated strategy where borrowing and investments are managed in accordance with best professional practice. The Council borrows money either to meet short term cash flow needs or to fund capital schemes within the capital programme but loans taken are not associated with particular assets. The Council is exposed to financial risks including the potential loss of invested funds and the effect on revenue of changing interest rates. The Council endeavours to minimise the risks by investing its funds prudently, and having regard firstly to the security of investments then to their liquidity and finally to the seeking the highest rate of return, or yield. The Strategy outlined the Council’s definition of specified and non-specified

investments, the financial limits for each category of investments and the

approved counterparties with associated credit ratings.

The Interim Head of Finance and Section 151 Officer proceeded, by confirming that the Capital Strategy 2020-21 to 2029-30 (Appendix B of the report) was presented to the Corporate Overview and Scrutiny Committee on the 13 February 2020 for information. It confirmed the Council’s compliance with the Prudential Code for Capital Finance in Local Authorities. It sets out the guiding principles for capital decisions as to:-

1.  Focus capital investment on delivery of the Council’s Objectives and  Priorities

2.  Ensure strong governance over decision-making

3.  Ensure that capital plans are affordable, sustainable and prudent

4.  Maximise and promote the best use of available funds

The Capital Strategy set out a framework for the self-management of capital finance and examines the following areas:

• Capital expenditure and investment plans
• Prudential Indicators
• External debt
• Treasury Management

It also reported on the delivery, affordability and risks associated with the long-term context, in which capital expenditure and investment decisions are made.

The Local Authority (Capital Finance and Accounting) (Amendment) (Wales)

Regulations 2008, also required the Council to produce and approve an Annual Minimum Revenue Provision (MRP) Statement before the start of the financial year. Where a Council finances capital expenditure by debt, it must put aside revenue resources to repay that debt in later years and this is charged to revenue.

To conclude her submission, the Interim Head of Finance and Section 151 Officer advised that this Statement was attached at Appendix B - Schedule A, to the report.

RESOLVED:                        That Council approved:

• the Treasury Management Strategy 2020-21 including the Treasury

           Management Indicators 2020-21 to 2022-23 (Appendix A);

• the Capital Strategy 2020-21 to 2029-30 including the Prudential Indicators 2020-

           21 to 2022-23 (Appendix B);

• the Annual Minimum Revenue Provision (MRP) Statement 2020-21 (Appendix B - Schedule A).