Agenda item

A report providing information to enable Cabinet to formulate and propose its resolution to Council for Capital, General Fund Revenue and Housing Revenue Account and approve the Council Treasury Management strategy.

Contact: Debbie Hogg 01484-221000

That the report be submitted to the meeting of Council on 15 February 2016 with the following recommendations;

(1) Capital

(i) That the Capital Investment Plan be recommended to Council with an intention that the Plan is reviewed as an integral element of the Council’s Budget Strategy to support Council priorities (on both capital and revenue budget proposals) and is contained within foreseeable resources (Appendix A, Section 1 and Appendix E refer).

(ii) That Council be advised to determine the Prudential Indicators as referred to in Appendix A (Section 1, para 1.3.19) and Appendix F.

(2) Treasury Management

(i) That the borrowing strategy as outlined in Appendix A (Section 2, para 2.3) be approved.

(iii) That the investment strategy be outlined in Appendix A (Section 2, para 2.4) and Appendix G be approved.

(iv) That the policy for provision of repayment of debt (minimum revenue provision) as outlined in Appendix A (Section 2, para 2.5) and Appendix I be approved.

(3) General Revenue Fund

(i) That the draft Revenue Budget for 2017-2020 and indicative high level funding and cost estimates for 2020-21 be approved (Appendix B refers).

(ii) That the proposed re-direct of £3.3m from rollover reserves to general balances, the proposed 2016-2017 year end transfer of £7.7m to organisational risk reserves (in-year further treasury management saving from the proposed amendment to the Council’s minimum revenue provision strategy) , and the proposed re-alignment of £1.4m currently uncommitted resources earmarked for transformation projects totalling £1.4m to the New Council Transformation reserve be approved (Appendix A, Section 3, para 3.16.5 refers).

(iii) That, subject to approval of (3)(ii) above, the forecast levels of general and earmarked reserves as set out at Appendix A (Section 3, para 3.16.6) be noted.

(iv) That the strategy for the use of balances and reserves, as set out in Appendix A (section 3, paras 3.16.7 and 3.16.8 refer) be approved.

(v) That it be acknowledged that for 2017-2018 the minimum level of General Fund balances should be £5.0m (Appendix A, Section 3, para 3.16.6 refers).

(vi) That a further reassessment of reserves requirements be undertaken at year end and reported as part of the 2016-2017 revenue rollover and outturn report.

(vii) That it be noted that the Council’s continued participation on the Leeds City Region business rates pool for 2017-2018 (Appendix A, Section 3, para 3.13.6 refers).

(viii) That approval be given to the Council Tax requirement for 2017-2018 (Appendix A, Section 3, para 3.14, and Appendix C; budget motion refer)

(ix) That approval be given to the Council’s Pay Policy Statement for 2017-2018 as set out in Appendix D (i-v).

(x) That the Council’s Statutory s151 Officer’s positive assurance statement, as referred to in para. 4 of the considered report, be noted.

(xi) That the Council’s Statutory s151 Officer be given delegated authority to amend how the finally approved precepts are recorded in the Council’s revenue budget in line with the final notifications received following decisions by the Office of Police and Crime Commissioner, the Fire and Rescue Authority and Parish Councils should these be received after 15 February 2017.

(4) Housing Revenue Account (HRA)

(i) That the draft HRA Budget for 2017-2020 (as detailed in Appendix B) be approved.

(ii) That the strategy for the use of HRA reserves (as detailed in Appendix A, Section 4, para 4.3.1) be approved.