Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

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

RESOLVED:  That Council:

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

(2)   Approved the adoption of the four clauses in relation to the Code of Practice on Treasury Management (as detailed in paragraphs 8.10 to 8.16).

(3)   Agreed to bring forward the £30k capital allocation for the refurbishment of the Howard Park Kiosk in to 2023/24.

(4)   Agreed to bring forward £10k capital allocation for the Public Sector Decarbonisation scheme in to 2023/24.

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.

Recording 2 hours 31 minutes

The Chair invited, Councillor Elizabeth Dennis, Leader of the Council, to present the referral from the Cabinet. Councillor Dennis advised that Members had the relevant papers and comments before them and would therefore hand to Councillor Ian Albert to present the item. 

Councillor Ian Albert, as Executive Member for Finance and IT, presented the report and advised that:

(1)   There were two additional recommendations to the report in relation to £30k capital allocation for the refurbishment of the Howard Park Kiosk in to 2023/24; and £10k capital allocation for the Public Sector Decarbonisation scheme in to 2023/24.

·       This paper combined capital budgets for 2024/25 onwards along with the treasury strategy.

·       As capital spend was not directly matched by funding, the amount spent on capital had a direct impact on the cash available for investment.

·       The Council would need to fund capital spend from borrowing internally from its cash reserves.

·       Whether borrowing was made internally or externally, the Council would need to make a minimum revenue provision charge against the revenue budget.

·       Increase in revenue costs from the capital spend meant the Council needed to review that the capital spend was still providing good value for money.

·       Changes agreed at Cabinet to the Public Sector Decarbonisation scheme to reduce carbon emissions and provide energy savings were set out in paragraph 5.2 of the report.

·       Capital investment has been allocated to upgrade the kiosk at Howard Park in Letchworth.

The following Members asked questions:

·       Councillor Claire Strong

·       Councillor Michael Muir

·       Councillor Steve Jarvis

In response to questions, the Service Director – Resources confirmed that the boiler replacement at leisure centres would be air source heat pumps and the boiler allocation could be found on page 9 of the Appendix.

Councillor Ian Albert proposed and Councillor Alistair Willoughby seconded and, following a vote, it was:

RESOLVED:  That Council:

(2)   Approved the adoption of the Investment Strategy (as attached at Appendix A), including the capital programme and prudential indicators.

(3)   Approved the adoption of the four clauses in relation to the Code of Practice on Treasury Management (as detailed in paragraphs 8.10 to 8.16).

(4)   Agreed to bring forward the £30k capital allocation for the refurbishment of the Howard Park Kiosk in to 2023/24.

(5)   Agreed to bring forward £10k capital allocation for the Public Sector Decarbonisation scheme in to 2023/24.

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.