1.1.That the Committee considers the Treasury Management Policy Statement, the Treasury Management Strategy Statement, the Investment Strategy and relevant Indicators for 2021-22 ;
1.2.That the Committee considers the Council’s Capital Strategy for 2021-22 to 2025-26; and
1.3.That the documents in 2.1 and 2.2 are recommended to Cabinet and Council for approval
Additional documents:
Minutes:
The Chairman introduced Mr Mark Caplow to the
meeting to introduce the report which included The Council’s
Treasury strategy and the Draft Capital Strategy. An updated
Appendix, Appendix 2.A had been circulated separately which
outlined an economic update provided by the Councils treasury
advisor. The reports highlighted the Council’s high level
capital and financial intentions, providing a summary of the
Council’s long term investment priorities over the medium
term. Members were advised a glossary of terms had also been
included for reference in addition to details of the key changes
from the previous year listed in Appendix 1.
The following points were highlighted:
In response to questions and comments from Members it was advised that:
· Following the economic difficulties faced nationally in 2018 the Council took the decision to change from funding revenue from investment income to funding capital from investment income.
· The Council would have the option to invest in Climate Change Mitigation, as set out in the report, of up to £20m.
· Preference would be given to placing investments with banks or institutions that have demonstrated significant interest in sustainability by being a signatory to the UN Environment Finance Initiative’s (UNEFI) Principles for Responsible Banking/ Investment. This requirement did to apply to the UN public sector.
· The wording of the report would be amended to read “whilst ESG is a desirable objective for treasury investing, it must be ranked behind security, liquidity and yield, as dictate by statute”.
· Figures detailed on page 18 provided information on forecasted cash balances.
· The Members expect that the Council’s Corporate Plan priorities reflect the Environmental aspirations of the Council.
Following discussion it was RESOLVED that:
a.
the Committee considers
the Treasury Management Policy Statement, the Treasury Management
Strategy Statement, the Investment Strategy and relevant Indicators
for 2021-22;
b.
the Committee considers the Council’s Capital
Strategy for 2021-22 to 2025-26;
and
c. That the documents in 2.1 and 2.2 are recommended to Cabinet and Council for approval.