Chief Finance Officer presented a report to Audit Committee to
consider the draft Treasury Management Strategy, Annual Investment
Strategy, Minimum Revenue Provision (MRP) Policy and Capital
Strategy and make recommendations to Cabinet and full Council as appropriate. This is to
ensure that there is an effective framework for the management of
the Council's investments, cash flows and borrowing activities
prior to the start of the new financial year. This report also
provides an update on performance to 31 December 2019.
Council has some £64.55 million of debt (as at 1 January
2020), and investments which can fluctuate between £15m and
£30m in the year. The level of debt is set to increase to
some £104m by 2021/22 with a consequently increase in
Chief Finance Officer explained that the key changes within this
report compared to the council’s current strategy to date are
levels of borrowing and investment, and the use of money markets
and the way this affects the council as a whole.
Councillors asked about ethical investments.
Chief Finance Officer advised that the council are not currently
knowingly investing in any areas where any of the council’s
requirements on ethical investments are not being met. The Chief
Finance Officer does not see this to be a particular issue for
Hastings Borough Council given the limited investments made and the
institutions involved. However an ethical investment policy will be
Councillors stated they would welcome seeing such a document
which would summarise the council’s investments.
Councillors also discussed various factors which need to be kept
an eye on by this committee throughout the year, such as
Committee recommend to Cabinet and full
The Council approve the Treasury
Management Strategy, Minimum Revenue Provision (MRP) Policy, Annual
Investment Strategy, and the Capital Strategy.
The strategies listed be updated as necessary during 2020/21 in the light
changing and emerging risks and the Council’s evolving future
The Financial rules and the Financial
Operating Procedures of the Council are reviewed and revised as
necessary to meet the requirements of the Code of
The Cabinet and full Council note that
there is likely to be the use of Money Market Funds in 2020/21
– as already allowed for in the investment
Reasons for Recommendations
The Council seeks to minimise the costs of borrowing
and maximise investment income whilst ensuring the security of its
investments. The Council continues to make substantial investments
in commercial property, housing and energy generation initiatives,
and this will continue to involve the Council in taking on
The sums involved are significant and the
assumptions made play an important part in determining the annual
budget. The CIPFA Treasury Management Code of Practice (2017
Edition), adopted by the Council last year, was released to take
account of the more commercialised approach being adopted by
councils and the enhanced levels of transparency required. The Code
represents best practice and helps ensure ...
view the full minutes text for item 79.