Issue - meetings

To consider the report of the Assistant Director Finance.

Corporate Services Scrutiny Committee considered the report at its meeting on 26 January 2017 and its comments will be reported.

The Assistant Director Finance presented the report setting out the proposed 2017/18 prudential indicators for capital finance for adoption by the Council and set the annual statement of Minimum Revenue Provision (MRP). Members were advised that this report set out the maximum limit that the Section 151 Officer was allowed to borrow and that there had been no change in the MRP.

Corporate Services Scrutiny Committee considered the report at its meeting on 26 January 2017 and its comments were reported.

RECOMMENDED that Council adopt the:-

(1)        Prudential Indicators set out in Appendix A-C of the report as presented; and

(2)        Annual Statement of Minimum Revenue Provision for the Council.

To consider the report of the Assistant Director Finance.

The Assistant Director Finance presented the report on The Prudential Code for Capital Finance in Local Authorities (Incorporating the Annual Statement of Minimum Revenue Provision), which advised Members of the proposed 2017/18 prudential indicators for capital finance for adoption by the Council and set the annual statement of Minimum Revenue Provision (MRP).

The Assistant Director Finance informed Members of the changes to the Prudential Code which required full council approval as did the statement of Minimum Revenue Provision (MRP).

He discussed the proposed prudential code indicators and referred Members to appendices A-C which depict the indicators for the next three years and summarised the key issues to the Members:-

·         The Capital Financing Requirement: shows the amount that the Council needs to borrow;

·         The Operational Boundary: sets the amount of borrowing that the Council intends to keep within over the period covered by the indicators. This would be the limit of borrowing;

·         The Authorised Limit: the maximum that the Section 151 Officer is allowed to borrow to cover the Operational Boundary and day to day cash flow needs.  This would be the absolute upper limited to borrowing.

In response to a Members’ question, the Assistant Director Finance advised that fixed amount of projected borrowing was due to a limit to the amount of variable right is fixed. It was intended to attain a 100% fixed rate on borrowing.

Corporate Services Scrutiny Committee noted the report and requested Executive and Council note and approve:-

(1)  The Prudential Indicators set out in Appendix A-C;

 and

(2)  The Annual Statement of Minimum Revenue Provision for the Council