Issue - meetings

The Prudential Code for Capital Finance in Local Authorities (Incorporating the Annual Statement of Minimum Revenue Provision)

Meeting: 08/02/2022 - Executive (Item 22)

22 The Prudential Code for Capital Finance in Local Authorities (Incorporating the Annual Statement of Minimum Revenue Provision) pdf icon PDF 259 KB

To consider the report of the Director Finance.

 

Additional documents:

Decision:

Agreed:

 

RECOMMENDED that Council adopt:-

 

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

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

 

Reason for Decision: As set out in the report.

 

 

 

Minutes:

The Executive received the report on the proposed 2022/23 prudential indicators for capital finance for adoption by the Council and to set the annual statement of Minimum Revenue Provision (MRP), which would be incorporated within the Budget Book for approval at the full Council meeting as per the statutory requirement.

 

Particular reference was made to the range of indicators to manage the Capital Programme and borrowing, which the Council must adhere to:-

 

·        the Capital Financing requirement demonstrated the amount which the Council had an underlying need to borrow, regardless of whether that amount has actually been borrowed;

·        a consultation had been held on the minimum revenue provision, which had proposed a number of changes including to capital loans, but there were was no proposed change to the minimum revenue provision strategy at this stage;

·        the Operational Boundary set the maximum amount of borrowing that the Council intended to undertake for capital purposes over the period covered by the indicators; and

·        the authorised limit was the maximum level, which the Section 151 officer was allowed to borrow to cover the Operational Boundary and day to day cash flow needs.  The Council was not allowed to exceed this amount of borrowing without first authorising an increase to the limit.

 

RECOMMENDED that Council adopt:-

 

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

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