Issue - meetings

Report by Section 95 Officer

The Committee gave consideration to a report outlining the arrangements for managing the Council’s treasury activities.

Decision:

The Audit and Scrutiny Committee agreed:

1.    to endorse the proposed Treasury Management Strategy Statement and Annual Investment Strategy and the indicators contained within;

2.    to note 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;

3.    to note the use of the asset life method for the repayment of loan fund advances after 1 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;

4.    to note the proposed asset repayment periods as detailed within section 2.6 of the Treasury Management Strategy Statement;  and

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

(Ref:  Report by Section 95 Officer, dated 17 March 2020, submitted,)