Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To update Cabinet on progress with delivering the capital and treasury strategy for 2022/23, as at the end of June 2022.

RESOLVED:

(1)  That Cabinet noted the forecast expenditure of £12.252M in 2022/23 on the capital programme, paragraph 8.3 refers.

(2)  That Cabinet approved the adjustments to the capital programme for 2022/23 onwards, as a result of the revised timetable of schemes detailed in table 2 and 3, increasing the estimated spend in 2023/24 by £2.048M.

(3)  That Cabinet noted 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)  That Cabinet noted the position of Treasury Management activity as at the end of June 2022.

REASONS FOR DECISIONS:

(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 – 31 minutes 20 seconds

The Executive Member for Finance and IT presented the report entitled ‘First Quarter Investment Strategy (Capital and Treasury) Review 2022/23’ and noted the following for Members:

·         Table 2 in the report detailed the capital schemes which had been delayed.

·         Table 3 in the report detailed the cost changes in the capital schemes, as some of these had come in above budget and therefore needed a decision by Cabinet before proceeding.

·         Playground renovations are forecast to exceed the current budget, the majority of this shortfall can be found from Section 106 money.

·         The Solar Thermal scheme in Royston was set to come in at £20k over budget.

·         Work on the boilers at the outdoor pools started and engineers identified further works required. The works were completed due to the additional costs of delaying the works.

·         Treasury returns were increasing, but still significantly below inflation.

The Chair of the Finance, Audit and Risk Committee advised that the last meeting was attended by the Independent Member for the first time, who asked several detailed and important questions. He noted that the Committee had approved that report be recommended to Cabinet at its meeting.

In response to a questions from Councillor Ruth Brown, the Service Director – Resources advised that, whilst work had not been untaken to assess this, it was expected that there would be an additional benefit to the investment in Solar Thermal in Royston, as energy would be saved that would have been at a higher cost.

Councillor Ian Albert proposed and Councillor Elizabeth Dennis-Harburg seconded and, following a vote, it was:

RESOLVED:

(1)  That Cabinet noted the forecast expenditure of £12.252M in 2022/23 on the capital programme, paragraph 8.3 refers.

(2)  That Cabinet approved the adjustments to the capital programme for 2022/23 onwards, as a result of the revised timetable of schemes detailed in table 2 and 3, increasing the estimated spend in 2023/24 by £2.048M.

(3)  That Cabinet noted 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)  That Cabinet noted the position of Treasury Management activity as at the end of June 2022.

REASONS FOR DECISIONS:

(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.