Decision details

The Committee gave consideration to a report  which sought approval of the proposed Treasury Management Strategy Statement and Annual Investment Strategy which set out the Council’s Strategy for borrowing and investment for the forthcoming year.  The report also set out the policy for the repayment of loans fund advances for 2020-21.

Decision

The Policy and Resources Committee –

1.    Noted the substantial amount of work undertaken by the Finance team in respect of the loan charges review and welcomed the positive impact of the work.

2.    Agreed to refer to Council, at their meeting on 27 February 2020, to –

a) Approve the proposed Treasury Management Strategy Statement and Annual Investment Strategy and the indicators contained within.

b) Approve the use of the statutory method for the repayment of loan fund advances prior to 1 April 2019 in respect of existing capital expenditure using a 5.1% annuity interest rate over an average period of 32 years. For those loans fund advances outstanding at 1 April 2004 a repayment period of 14 years will be used.

c) Approve the use of the asset life method for the repayment of loan fund advances after 1st April 2019 using a 5.1% annuity interest rate, with the exception of spend to save schemes where the funding/income profile method could be used.

d) Approve the proposed asset repayment periods as detailed within section 2.6 of the Treasury Management Strategy Statement.

e) Approve the ability to continue to use countries with a sovereign rating of AA- and above, as recommended by Link Asset Services.

(Reference:  Report by Section 95 Officer dated 13 February 2020, submitted)