Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To update the Committee on progress with delivering the Capital and Treasury Strategy as at the end of June 2021.

RECOMMENDED TO CABINET:

(1)  That Cabinet note the forecast expenditure of £16.144 million in 2021/22 on the capital programme, paragraph 8.3 refers;

(2)  That Cabinet approve the adjustments to the capital programme for 2021/22 onwards as a result of the revised timetable of schemes detailed in table 2, increasing the estimated spend in 2022/23 by £0.312million.

(3)  That Cabinet note the position of the availability of capital resources, as detailed in table 4 paragraph 8.6 and the requirement to keep the capital programme under review for affordability;

(4)  Cabinet note the position of Treasury Management activity as at the end of June 2021.

REASONS FOR RECOMMENDATIONS:

(1)  Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded;

(2)  To ensure the Council’s continued compliance with CIPFA’s code of practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk.

Audio Recording – 28 minutes 29 seconds

The Service Director – Resources presented the report entitled First Quarter Investments Strategy (Capital and Treasury) Review 2021-22 and advised:

·         An additional item was added to the version of the report sent to cabinet. This change was to Table 3 where works to Coombes Community Centre would require further work completing and had forecast another £25,000 for this.

·         Table 4 showed that we would need to borrow if the Capital Programme is fully spent but this includes amounts allocated for the property acquisition and development strategy.

·         Currently, borrowing has not been explored and this would happen at a later stage, if required.

·         There is more cash in treasury than forecast, mainly from funds from Government for Covid relief and support which is due to go out and grants which have not gone out yet. Rates earned on this cash is very low – generally less than 0.1% across the year.

The following Members asked questions:

·         Councillor Terry Hone

In response to questions asked, the Service Director – Resources advised:

·         Currently, borrowing costs and income have not been included for amounts relating to the property acquisition and development strategy, this was a prudent approach when there was uncertainty regarding what the opportunities would be.

·         Investments would not be considered if the returns were not worthwhile.

·         Capital from the sale of housing stock to settle has been used up over many years from 2003.

·         Some capital receipts are still coming in from sale of land.

Following a vote, it was:

RECOMMENDED TO CABINET:

(1)  That Cabinet note the forecast expenditure of £16.144 million in 2021/22 on the capital programme, paragraph 8.3 refers;

(2)  That Cabinet approve the adjustments to the capital programme for 2021/22 onwards as a result of the revised timetable of schemes detailed in table 2, increasing the estimated spend in 2022/23 by £0.312million.

(3)  That Cabinet note the position of the availability of capital resources, as detailed in table 4 paragraph 8.6 and the requirement to keep the capital programme under review for affordability;

(4)  Cabinet note the position of Treasury Management activity as at the end of June 2021.

REASONS FOR RECOMMENDATIONS:

(1)  Cabinet is required to approve adjustments to the capital programme and ensure the capital programme is fully funded;

(2)  To ensure the Council’s continued compliance with CIPFA’s code of practice on Treasury Management and the Local Government Act 2003 and that the Council manages its exposure to interest and capital risk.