The Committee gave consideration to a reportÌý 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.Ìý 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 Â鶹Ãâ·Ñ°æ.
(Reference:Ìý
Report by Section 95 Officer dated 13 February 2020, submitted)