Issue - meetings

Report of the Executive Director (Resources, Environment and Cultural Services) presenting the proposed Treasury Management Strategy for 2017/18. 

Report of the Executive Director (Resources, Environment and Cultural Services) reviewing the performance of the existing Strategy in consultation with the Council’s advisers, Arlingclose.

The review concluded that it was not necessary to make any significant changes and that the Strategy was still fit for purpose for the year ahead.  It was proposed, however, to make one amendment to increase the limit on non-specified investments, which were generally long term or with unrated counterparties, from £35M to £45M. 

The Council continued to seek opportunities to generate a yield from cash investments whilst of course being mindful of security and liquidity.  With the bank rate expected to remain at the historic low of 0.25% this would continue to be challenging and was why alternatives, such as further investment in property, must be looked at.  Cash flow estimates suggested that there would be an average investment balance of between £35M and £60M during 2017/18 and that an average return of 0.9% would be achieved.

(1)          The Decisions Taken

RESOLVED:

(1)          That the Council's Tax Base 2017/2018 be approved, incorporating a collection rate of 97.70%.

(2)          That in accordance with the Local Authorities (Calculation of Council Tax Base) Regulations 2012, the amount calculated by the Borough Council as its taxbase for the year 2017/18 shall be 40324.2 and its constituent elements shall be:-

(3)     That the Cabinet agrees the recommendations set out in the reports of the Executive Director (Resources, Environment and Cultural Services) on the Medium Term Financial Strategy 2017/18 to 2019/20, the Housing Revenue Account Budget for 2017/18, the General Fund Budget 2017/18 and the Capital Programme 2017/18 to 2021/22 for reference to the Resources Overview and Scrutiny Committee on 19 January for consideration and report back to the special Cabinet meeting on 24 January and presentation of the budget to the special Council meeting on 6 February 2017.

(4)     That the Council be recommended to approve the Treasury Management Strategy 2017/18.

(2)        Reasons for the Decisions

(a)       The Council was required to calculate the Tax Base for its area each year in accordance with Regulations.

The requirements of the Council’s budget and policy framework rules for setting the Council’s annual budget had to be met. 

These budget proposals would be submitted to the Resources Overview and Scrutiny Committee on 19 January for consideration and any suggested amendments would be reported to the special Cabinet meeting on 24 January, together with any other updates, prior to the budget being considered at the special Council meeting on 6 February 2017.

(Note:  Councillor R.Trigg declared an interest in Agenda Item 7(c) – Housing Revenue Account Budget – 2017/18).  Councillor D.Bell declared an interest in Agenda Item 7(f) – Treasury Management Strategy 2017/18 (Minute 110 refers).