Issue - meetings

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To receive an update on progress with delivering the capital and treasury strategy for 2024/25, as at the end of June 2024.

RESOLVED: That Council approved:

(1)            A capital budget of £0.080M to fund the purchase and installation of a new chiller at the museum, paragraph 8.4 refers.

(2)            A capital budget of £1.920M (£0.96M in 24/25 and £0.96M in 25/26) for round 3 of the Local Authority Housing Fund. This would be fully funded from Government grants and housing provider contributions, paragraph 8.5 refers.

(3)            Bringing forward £0.008M of the backup and business continuity hardware capital budget (from 2025/26 to 2024/25) and reducing the 2025/26 budget to £0.057M.

(4)            Bringing forward £0.672M of leisure funding to allow upgrades to the fitness facilities in Hitchin to take place in this financial year, instead of next financial year. This would be made up of the £0.300M budget for Member Change and Relaxation Area Refurbishment, and £0.372M of the 2025/26 allocation of the budget for providing capital funding to our leisure provider.

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 – 3 hour 44 minutes 53 seconds

N.B Councillor Paul Ward, having declared an interest due to his employment and left the Chamber at 23:15 and did not take place in the debate or vote.

The Leader of the Council, Councillor Daniel Allen presented the referral from Cabinet.

Councillor Ian Albert, Executive Member for Finance and IT presented the report ‘First Quarter Investment Strategy (Capital and Treasury) Review 2024/25’ and stated that:

·       Work was ongoing regarding a capital budget review prior to the budget setting process for 2025-26.

·       Appendix B of the report highlighted the much higher than anticipated treasury returns due to the current high interest rates and cash balances.

·       Additional capital was required for the replacement of the Museum chiller and this was detailed in paragraph 8.4 of the report, and was critical for the preservation of Museum artifacts.

·       Notification had been received regarding capital funding of £1.92M for round 3 of the Local Authority Housing Fund. The project would be fully funded and consisted of 10 properties and was detailed in paragraph 8.5 of the report.

·       A request was made to move £8K of the business hardware capital budget from 2025/26 into 2024/25 and this was detailed in paragraph 8.9 of the report and could lead to a saving of £4K.

·       The referral 8C from Cabinet highlighted the request to move forward the upgrade at Hitchin Gym from the 2025/26 budget to this current year 2024/25. This would enable the works to be completed earlier and cause less disruption to members.

Councillor Ian Albert proposed and Councillor Daniel Allen seconded and, following a vote, it was: 

RESOLVED: That Council approved:

(1)            A capital budget of £0.080M to fund the purchase and installation of a new chiller at the museum, paragraph 8.4 refers.

(2)            A capital budget of £1.920M (£0.96M in 24/25 and £0.96M in 25/26) for round 3 of the Local Authority Housing Fund. This would be fully funded from Government grants and housing provider contributions, paragraph 8.5 refers.

(3)            Bringing forward £0.008M of the backup and business continuity hardware capital budget (from 2025/26 to 2024/25) and reducing the 2025/26 budget to £0.057M.

(4)            Bringing forward £0.672M of leisure funding to allow upgrades to the fitness facilities in Hitchin to take place in this financial year, instead of next financial year. This would be made up of the £0.300M budget for Member Change and Relaxation Area Refurbishment, and £0.372M of the 2025/26 allocation of the budget for providing capital funding to our leisure provider.

REASONS FOR DECISIONS:

(1)   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.