Issue - meetings

To consider a report of the Deputy Leader of the Council and Executive Councillor (Support & Governance).

The Deputy Leader of the Council (Support & Governance) (Councillor Iain Roberts) submitted a report (copies of which had been circulated) inviting the Council Meeting to consider the Treasury Management Strategy Statement, the Annual Investment Strategy and the Minimum Revenue Provision Policy 2016/17.

RESOLVED (55 for) – That approval be given to:-

·         The revised Minimum Revenue Provision Policy for 2015/16 and 2016/17;

·         The Capital Expenditure Forecasts and Capital Financing Requirement projections;

·         The Treasury Management Strategy 2016/17;

·         The Treasury and Prudential Indicators and limits 2016/17-2018/19;

·         The Annual Investment Strategy 2016/17.

To consider a report of the Executive Councillor (Support & Governance)

This comprehensive report proposes the 2016/17 Treasury Management Strategy, Annual Investment Strategy, Minimum Revenue Provision Policy and prudent and sustainable Treasury and Prudential Indicators, which are constructed in compliance with the CIPFA Treasury Management Code of Practice.

The views of Corporate, Resource Management & Governance Scrutiny Committee were sought and any opinions or suggestions made have been taken into account when formulating the Council's Treasury Management Strategies for 2016/17.

The first part of the report details the Council’s Capital expenditure plans which are a key driver to the long-term borrowing aspect of treasury management activity and strategy; these are reflected in a number of prudential and treasury indicators. 

The report develops to show how capital expenditure funded by prudential borrowing is subsequently charged against the Council’s revenue resources in the revised Minimum Revenue Provision (MRP) Policy Statement.

Fundamentals of the Council’s investment policy, approach to creditworthiness and investment strategies for 2016/17 are included in the Annual Investment Strategy statement.

The report provides an economic commentary and interest rate forecast, detailing likely scenarios for the economy and financial markets in 2016/17 based on current information. 

A key highlights report is provided which summarises the main points of the more comprehensive report.

An Equalities Impact Assessment has been carried out on the Treasury Management Strategy; this is included at Appendix Six.

The Executive is asked to recommend that the Council Meeting approves

·         The revised Minimum Revenue Provision Policy for 2015/16 & 2016/17;

·         The Capital Expenditure Forecasts and Capital Financing Requirement projections;

·         The Treasury Management Strategy 2016/17;

·         The Treasury and Prudential Indicators and Limits 2016/17-2018/19;

·         The Annual Investment Strategy (AIS) 2016/17.

Officer contact: John Parkinson, 0161 218 1757, john.parkinson@stockport.gov.uk

The Executive Councillor (Support & Governance) submitted a report (copies of which had been circulated) inviting the Executive to consider the proposed 2016/17 Treasury Management Strategy, Annual Investment Strategy, Revised Minimum Revenue Provision Policy and prudential and sustainable Treasury and Prudential Indicators constructed in compliance with the CIPFA Treasury Management Code of Practice.

On behalf of the Executive, the Leader of the Council thanked officers involved with treasury management for their strong stewardship of Council resources.

RESOLVED – That in relation to the Treasury Management Strategy, Annual Investment Strategy and Revised Minimum Revenue Provision Policy the Council Meeting be recommended to approve:-

·         revised Minimum Revenue Provision Policy for 2015/16 & 2016/17;

·         Capital Expenditure Forecasts and Capital Financing Requirement projections;

·         Treasury Management Strategy 2016/17;

·         Treasury and Prudential Indicators and Limits 2016/17-2018/19; and

·         Annual Investment Strategy (AIS) 2016/17.

To consider a report of the Corporate Director, Corporate and Support services.

The purpose of this report is to provide the Scrutiny Committee with the opportunity to comment on and discuss issues that are relevant to the development of next year’s Treasury Management Strategy Statement (TMSS), Annual Investment Strategy (AIS) and Minimum Revenue Provision (MRP) Policy for 2016/17. The strategy will be considered as part of the 2016/17 Budget Setting process at the Executive Meeting on 16 February 2016 and the Council Meeting on 3 March 2016.

The Scrutiny Committee is invited to note and comment on the issues and proposals influencing the development of the 2016/17 TMSS/AIS/MRP Policy.

Officer contact John Parkinson on telephone number Tel: 0161 218 1757 or alternatively email john.parkinson@stockport.gov.uk.

The Corporate Director, Corporate and Support services submitted a report (copies of which had been circulated) providing the Scrutiny Committee with the opportunity to comment on and discuss issues that were relevant to the development of next year’s Treasury Management Strategy Statement (TMSS), Annual Investment Strategy (AIS) and Minimum Revenue Provision (MRP) Policy for 2016/17.

The strategy would be considered as part of the 2016/17 Budget Setting process at the Executive Meeting on 16 February 2016 and the Council Meeting on 3 March 2016.

The Executive Councillor (Support and Governance) (Councillor Iain Roberts) attended the meeting to respond to Members’ questions.

The following comments were made/issues raised:-

·         The Council should continue to take a cautious approach to ‘Risk’

·         The Council should maintain adequate Reserves to ensure the Council could meet unplanned expenditure.

·         In relation to the incremental impact of new capital investment decisions on Housing Rents in respect of the Housing Revenue Account (HRA), the number of projected HRA dwellings should reflect the estimated number of Right to Buys.

RESOLVED – That the report be noted.