Treasury Management Policy – including Liability Management and Investment Policies
This policy provides appropriate parameters in which Council will manage its borrowing activities and external liabilities to ensure compliance with the provisions of the Local Government Act 2002.
Section 102 of the Local Government Act 2002 (the “Act”) requires Council to adopt a Liability Management Policy (the “Policy”). Section 104 of the Act outlines the contents of Council’s policies in respect of the management of both borrowing and other liabilities, including:
- interest rate exposure; and
- liquidity; and
- credit exposure; and
- debt repayment.
The Policy is to be consistent with the Long Term Plan (LTP) and Annual Plan. The formalisation of such policies and procedures will enable treasury risks within Council to be prudently managed.
As circumstances change, the policies and procedures outlined in this Policy will be modified to ensure that treasury risks within Council continue to be well managed.
Section 102 of The Local Government Act 2002 requires Council to adopt an investment policy which must state Council’s policies for its investments, including:
- the objectives in terms of which financial and equity investments are to be managed
- the mix of investments
- the acquisition of new investments
- an outline of the procedures by which investments are managed and reported on to Council
- an outline on how risks associated with investments are assessed and managed.