Agenda item

The Mayor of Doncaster, Ros Jones, presented a report which provided details of the Strategy for the management of the Council’s finances and provided a framework for the operation of the Treasury Management function within the Council.

The Mayor explained that the Treasury Management function ensured that sufficient cash was available to meet the service requirements and the Capital Programme plans.  The Council had to ensure that it had access to money to pay its bills and it was vital that the Council managed its finances in the best interests of local residents. The Strategy proposed how the Council would take a sound and robustapproach to achieve those goals, setting out the Council’s plans for the coming three years.

It was reported that investment interest rates remained low, but forecast interest rates were due to rise over the term of the Strategy. However, the Mayor explained that despite current volatility, the general consensus was that any rises would be slow and steady.  Borrowing continued to be taken to support the Capital Programme and refinance matured loans, but this would be taken over short terms and at very low rates (less than 1.5%) to keep interest costs as low as possible.

The Mayor advised that further borrowing would be needed to help fund the Capital Programme. This would be taken when needed and at the most advantageous interest rates achievable. There were also loans totalling £32.5m expiring during 2018/19 which would require refinancing. It was further explained that the Council was required to put aside an element of General Fund capital spend in much the same way as people would pay capital off their mortgage. This was called Minimum Revenue Provision (MRP).

Following a review, the Council had amended the MRP policy to allow the Council to use the most beneficial method of MRP calculation whilst complying with revised Ministry of Housing, Communities and Local Government regulations.

Overall the Mayor believed that this Strategy was a sensible and appropriate approach to managing the Council’s financing requirements.

Members were afforded the opportunity to comment on the Strategy.

In accordance with Council Procedure Rule 21.4, a recorded vote was taken on the recommendations contained within the report, which was declared as follows:-

For - 42

The Chair of Council, Councillor George Derx, the Vice-Chair of Council, Councillor Majid Khan, the Mayor of Doncaster, Ros Jones, the Deputy Mayor, Councillor Glyn Jones, and Councillors Duncan Anderson, Lani-Mae Ball, Nigel Ball, Iris Beech, Joe Blackham, Rachael Blake, Nigel Cannings, Bev Chapman, Mick Cooper, Linda Curran, Susan Durant, Nuala Fennelly, Neil Gethin, Sean Gibbons, John Gilliver, Pat Haith, Rachel Hodson,

Charlie Hogarth, Mark Houlbrook, David Hughes, Eva Hughes, Ken Keegan, Jane Kidd, Nikki McDonald, Chris McGuinness, Sue McGuinness,

Bill Mordue, John Mounsey, David Nevett, Jane Nightingale, Andy Pickering, Andrea Robinson, Kevin Rodgers, Dave Shaw, Derek Smith, Frank Tyas, Austen White and Sue Wilkinson.

Against - 7

Councillors Nick Allen, Jane Cox, Steve Cox,Martin Greenhalgh, R. Allan Jones, Cynthia Ransome and Jonathan Wood.

Abstain - 0

On being put to the meeting, the Treasury Management Strategy was declared CARRIED.

RESOLVED that

(1)       the Treasury Management Strategy Statement 2018/19 - 2021/22 report and the Prudential Indicators included, be approved; and

(2)       the Minimum Revenue Provision (MRP) Policy, as set out in paragraphs 26 - 27, and Appendix B of the report, be approved.