Agenda item

A report was presented which provided an update on the development of the 2022/23 Treasury Management Strategy for the SYMCA group.  The draft Strategy would shape the SYMCA’s approach to managing its cash and debt portfolios over the course of the following financial year.

G Sutton referred to the hierarchy of considerations that focused upon the following points:-

i)        Security of assets.  It was most important that the investments were with secure counter parties.

ii)      Liquidity.  Most of the investments were relatively short term, which enabled the ability to react to the interest rate changes.

iii)     Yield of the investment which resulted in income generation.

Councillor Jones highlighted a typographical error within Section B of Appendix 1 to the report, which should indicate that the other long-term liabilities set out in the table above represented the PFI liability in respect of Doncaster Interchange.

ACTION:-  M Thomas to amend the document prior to being presented to the SYMCA Board for approval.

Members noted that there was no change to the strategy in comparison to last year.  In 2021, the principle of change had been the increased operational limit, operational boundary and debt.

Councillor Otten referred to the idea of borrowing against future capital receipts to fund capital spending, and he queried what advice the Committee could provide on the downside risk of doing so.

In response, G Sutton referred to the assurance framework that had been adopted to test value for money for any of the investment decisions.  Future resources were committed to an investment decision in the immediate term, to be repaid in later years.  A judgement would be made on a transaction by transaction basis.

The Committee would have sight of the results of the comparative reviews which would be included within the mid-year report that was prepared for the SYMCA.  ACTION:-  G Sutton

Councillor Jones suggested that it would be worthwhile for the Committee to have a separate update on treasury management issues.

ACTION:-  G Sutton to schedule a tutorial to be held at the next pre-meeting of the Committee.

Councillor Auckland expressed his thanks to G Sutton for the exemplary manner in which he had explained the issues raised by Members.

RESOLVED – That the Committee:-

i)        Endorsed the draft Treasury Management Strategy for onward approval by the SYMCA Board, alongside the proposed 2022/23 Revenue Budget and Capital Programme, in March 2022.

ii)      Endorsed the borrowing strategy set out in Section A of Appendix 1.

iii)     Endorsed the capital expenditure estimates and associated prudential indicators set out in Section B of Appendix 1.

iv)     Endorsed the minimum revenue provision policy set out in Section C of Appendix 1.

v)      Endorsed the annual investment strategy set out in Section D of Appendix 1.

vi)     Endorsed the granting of delegated authority to the Group Finance Director in consultation with the Chief Executive to provide a financial guarantee in favour of the SCR Financial Interventions Holding company.

vii)   Noted the intention to negotiate with HM Treasury and DLUHC to agree a borrowing cap for 2022/23 for all functions (transport and non-transport).

Endorsed the draft treasury management practices at Appendix 2.