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
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.

Nelson City Council Treasury Management Policy April 2021 (284KB PDF)