Issue - meetings

The Prudential Code for Capital Finance in Local Authorities - Prudential Indicators 2020/21

 

 

Meeting: 27/02/2020 - Council (Item 94)

94 The Prudential Code for Capital Finance in Local Authorities - Prudential Indicators 2020/21 pdf icon PDF 144 KB

Report of the Head of Corporate Resources

Minutes:

Further to Minute No. 111 of the meeting of the Cabinet held on 13 February 2020 the Council considered the report of the Head of Corporate Resources advising that the CIPFA Prudential Code for Capital Finance in Local Authorities was introduced following the Local Government Act 2003; that it detailed a number of measures / limits / parameters (Prudential Indicators) that were required to be set each financial year; and that the approval of these limits would provide a benchmark to measure actual performance against, to help ensure that the Council complied with relevant legislation, was acting prudently and that its capital expenditure proposals were affordable.

 

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 Fairclough 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 the relevant Prudential Indicators will be revised as required and that any changes will be submitted to Cabinet and then to Council for approval;

 

(3)

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

 

(4)

authority be delegated to the Executive Director of Corporate Resources and Customer Services 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.

 

 

Meeting: 13/02/2020 - Cabinet (Item 111)

111 The Prudential Code for Capital Finance in Local Authorities - Prudential Indicators 2020/21 pdf icon PDF 143 KB

Report of the Head of Corporate Resources

Minutes:

The Cabinet considered the report of the Head of Corporate Resources advising that the CIPFA Prudential Code for Capital Finance in Local Authorities was introduced following the Local Government Act 2003; that it detailed a number of measures / limits / parameters (Prudential Indicators) that were required to be set each financial year; and that the approval of these limits would provide a benchmark to measure actual performance against, to help ensure that the Council complied with relevant legislation, was acting prudently and that its capital expenditure proposals were affordable.

 

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).

 

Decision Made:

 

That the Council be recommended to:

 

(1)

set the Prudential Indicators, as detailed in the report, as the basis for compliance with The Prudential Code for Capital Finance in Local Authorities;

 

(2)

note that the relevant Prudential Indicators will be revised as required and that any changes will be submitted to Cabinet and then to Council for approval;

 

(3)

note that the estimates of capital expenditure may change as grant allocations are received; and

 

(4)

delegate authority to the Head of Corporate Resources 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.

 

Reasons for Decision:

 

To enable the Council to effectively manage its Capital Financing activities and comply with the CIPFA Prudential Code for Capital Finance in Local Authorities. The prudential indicators for the forthcoming and following years must be set before the beginning of the forthcoming year.

 

Alternative Options Considered and Rejected:

 

None.