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.
The Cabinet 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).
Decision Made:
That the Council be recommended to:
(1) approve 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 relevant Prudential Indicators will be revised as required and that any changes will be brought 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) give delegated 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.