Decision - The Prudential Code for Capital Finance in Local Authorities - Prudential Indicators 2019/20

Decision details

The Prudential Code for Capital Finance in Local Authorities - Prudential Indicators 2019/20

Decision Maker: Cabinet, Council

Decision status: Recommendations approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

The CIPFA Prudential Code for Capital Finance in Local Authorities was introduced following the Local Government Act 2003. It details a number of measures/limits/parameters (Prudential Indicators) that are required to be set each financial year. The approval of these limits will ensure that the Council complies with the relevant legislation, is acting prudently and that its capital expenditure proposals are affordable. This report presents for approval the Prudential Indicators required to be set by the Council in 2019/20 to comply with the code.

Decisions:

Further to Minute No. 95 of the Cabinet Meeting held on 14 February 2019, the Council considered the report of the Head of Corporate Resources on proposals to establish the Prudential Indicators required under the Prudential Code of Capital Finance in Local Authorities. This would enable the Council to effectively manage its Capital Finance Activities and comply with the Chartered Institute of Public Finance and Accountancy (CIPFA) Prudential Code of Capital Finance in Local Authorities.

 

The report indicated that the Council was required to approve Prudential Indicators for the following items:

 

(i)             Capital Expenditure (Section 2);

(ii)            Financing Costs/Net Revenue Stream (Section 3);

(iii)          Capital Financing Requirement (Section 4);

(iv)          External Debt (Section 5-7); and

(v)           Treasury Management Indicators (Section 8).

 

It was moved by Councillor Maher, seconded by Councillor Cummins and

 

RESOLVED:

 

That:

 

(1)      the Prudential Indicators, as detailed in the report, be approved as the basis for compliance with The Prudential Code for Capital Finance in Local Authorities;

 

(2)      it be noted that relevant Prudential Indicators would be revised as required and that any changes would be brought to the Cabinet and then to the Council for approval;

 

(3)      it be noted that the estimates of capital expenditure may change as grant allocations are received; and

 

(4)      the Head of Corporate Resources be granted delegated authority in conjunction with the Cabinet Member – Regulatory, Compliance and Corporate Services to manage the Authorised Limit and Operational Boundary for external debt as detailed in Section 5 of the report.

Report author: Graham Hussey

Publication date: 05/03/2019

Date of decision: 28/02/2019

Decided at meeting: 28/02/2019 - Council

Accompanying Documents: