Issue - items at meetings - INVESTMENT STRATEGY (INTEGRATED CAPITAL AND TREASURY)

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To consider the Investment Strategy and recommend to Council the adoption of the Investment Strategy.

RECOMMENDED TO CABINET:

That Cabinet recommends that Council approve the adoption of:

1. the Investment Strategy (as attached at Appendix A), including the capital programme and prudential indicators.

2. the four clauses in relation to the Code of Practice on Treasury Management (as detailed in paragraphs 8.11 to 8.16).

REASONS FOR DECISIONS:

1. To ensure that the capital programme meets the Council’s objectives and officers can plan the implementation of the approved schemes

2. To ensure the Council’s compliance with CIPFA’s code of practice on Treasury Management, the Local Government Act 2003, statutory guidance from the Department of Levelling Up, Housing and Communities (DLUHC) and the CIPFA Prudential Code. As well as determining and managing the Councils risk appetite in respect of investments.

Audio recording- 29 minutes 44 seconds.

The Chair invited Ian Couper, Service Director: Resources to present the report.

In summary the Service Director: Resources advised:

· The report detailed the capital budget and treasury position.

· Section 7 detailed the Current Capital Position.

· Section 8 onwards summarised Appendix A, the full Investment Strategy.

· Format described assets that the Council had currently, how to maintain those, detailed new assets that the Council was planning to acquire and planned investments into current assets.

· The Service Director highlighted a mistake in the Report in Paragraph 5. It referred to the additional allocation for CCTV cameras. The correct figure was £0.15million, not £0.015million. The amounts were correct in the detailed tables.

· The Strategy would lead to medium-term borrowing to fund investment due to Capital Reserves being used up.

· The report detailed borrowing internally against the Cash Reserve, which is recommended as best practice.

· The Council needed to consider a buffer balance for borrowing as well as structuring the borrowing.

· Paragraph 8.9 detailed some changes to limits where investments can be made due to less cash. It also covered a proposal to change the sovereign (country) rating of investments in non-UK banks from AAA to A- to allow more countries to pass and to diversify investments.

Questions were asked by the following:

· Councillor Terry Hone

· John Cannon

In response, the Service Director: Resources advised:

· The Council received a fully funded grant for a gum removal machine.

· This report does include a commitment to invest in Green/ESG investments, where available and provide reasonable rates.

· The Council hoped that all Council vehicles would be electric. All current vehicles are leased bar one. The capital allocation is to reflect a change in accounting treatment.

· The lease rates are similar to those of petrol and diesel equivalents.

The Chair advised that the report is presented to FAR for comment before referral to Cabinet.

Councillor Terry Tyler proposed and Councillor Sean Nolan seconded, there being no debate it was: