Issue - meetings

The draft Treasury Management Strategy for the new Buckinghamshire Council is presented to the Shadow Executive for consideration and comment.

RESOLVED:  Shadow Executive is asked to CONSIDER and APPROVE the draft Treasury Management Strategy for the new Council.

Cllr K Wood introduced the item and stated that the strategy was compulsory for all local authorities and conformed to statutory requirements. 

Mr R Ambrose, Section 151 Officer and Mr M Preston, Head of Finance - Investments and Projects  gave an overview of the report and highlighted the following points in response to questions raised by members:

• Interest rates had been increased by the Public Works Loan Board (PWLB) and other options were being considered for future borrowing.
• The total combined borrowing figure for all Buckinghamshire local authorities was £330.7 million with combined investments of £192.6 million.
• The authorised limit for gross borrowing was £630 million.  The limit could not be exceeded without approval from the shadow authority.  The budget was calculated based on the current borrowing levels, current borrowing plans and an allowance for future budget requirements.  It was highlighted that the operational boundary was a more accurate estimation of what was expected to be borrowed.
• Treasury Management advisors would provide advice and guidance over investments.  
• The current five existing authorities followed similar institutions and policies regarding cash investments.
• A large percentage of five year debt had matured. The borrowing rates continued to remain low despite the increase in interest from the PWLB.
• The investments in the property fund were not counted as capital investment.  This was a safe fund which helped to diversify the investment portfolio.  The total investment figure across the Buckinghamshire authorities was £21.2 million.

RESOLVED: Shadow Executive CONSIDERED and APPROVED the draft Treasury Management Strategy for the new Council.