Treasury Management and Investment Strategy 2010/11 - 2012/13

1. The treasury management service is an important part of the overall financial management of the Council’s affairs.  The prudential indicators in Appendix A consider the affordability and impact of capital expenditure decisions, and set out the Council’s overall capital framework.  The treasury service considers the effective funding of these decisions.  Together they form part of the process which ensures the Council meets its balanced budget requirement under the Local Government Finance Act 1992. 
2. The Council’s treasury activities are strictly regulated by statutory requirements and a professional code of practice (the CIPFA Code of Practice on Treasury Management – revised November 2009).  This Council originally adopted the Code of Practice on Treasury Management, and will now adopt the revised Code as part of this report.
3. As a result of adopting the Code the Council also adopted a Treasury Management Policy Statement (21/08/2003). This adoption met the requirements of one of the prudential indicators.  However the revised Code of Practice has amended the Treasury Management Policy Statement and this is appended at Annex B3 for approval.
4. The Constitution requires an annual strategy to be reported to Council outlining the expected treasury activity for the forthcoming 3 years.  A key requirement of this report is to explain both the risks, and the management of the risks, associated with the treasury service.  A further treasury report is produced after the year-end to report on actual activity for the year, and a new requirement of the revision of the Code of Practice is that there is a mid-year monitoring report.
5. This strategy covers:

•  The Council’s debt and investment projections;
• The Council’s estimates and limits on future debt levels;
• The expected movement in interest rates;
• The Council’s borrowing and investment strategies;
• Treasury performance indicators;
• Specific limits on treasury activities;

Next: Debt and Investment Projections

• Treasury Management and Investment Strategy
• Debt and Investment Projections
• Borrowing Strategy
• Investment Strategy
• Prudential Indicators and Limits on Activity

Financial Services

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