Agenda item

REPORT OF THE HEAD OF FINANCE, PERFORMANCE AND ASSET MANAGEMENT

To consider the proposed Capital Programme for 2018/2019 onwards.

RECOMMENDED TO COUNCIL:

(1)       That the inclusion in the proposed Capital Programme of all the new Capital Investment proposals listed in Appendix C to the report, totalling £3.274Million overall (£1.931Million profiled in 2018/19) be approved; and

(2)       That the provisional Capital Programme for 2018/19 to 2021/22 of £17.075Million, as detailed in Appendices A and B to the report, be adopted.

REASON FOR DECISION: To ensure that the Capital Programme meets the Council’s objectives and that officers can plan the implementation of the approved schemes.

The Executive Member for Finance and IT presented a report of the Head of Finance, Performance and Asset Management in respect of the proposed Capital Programme 2018/19 onwards.  The following appendices were submitted with the report:

Appendix A – Capital Programme Summary;

Appendix B – Capital Programme Detail; and

Appendix C – Capital Investment Proposals for 2018/19 and onwards.

The Executive Member for Finance and IT began advising that the years set out in recommendation 2.2 of the report should be amended from “2017/18 to 2020/21” to “2018/19 to 2021/22”.

The Executive Member for Finance and IT stated that, for a number of years, the Council had been investing a significant amount of capital expenditure across North Hertfordshire.  Much of those capital resources had come from the transfer of Council housing to North Hertfordshire Homes some years ago; some had come from the sale of land considered surplus to Council requirements; some had come from developer contributions via Section 106 Agreements; and some had come from Government grants.

The Executive Member for Finance and IT reported that the above mentioned capital money was coming to an end.  The Capital Programme as currently set out implied that, if nothing changed, then the balance in capital assets would be zero by the end of 2018/19  However, revenue reserves could be used to bolster the Capital Programme, and there was also the facility to borrow money.

The Executive Member for Finance and IT explained that another variable was the possibility of large scale capital projects overrunning, both in terms of time and budget.

The Executive Member for Finance and IT advised that the Council expected to generate capital receipts of around £8.5Million over the period 2018/19 to 2021/22.  The Government’s Capital Receipts Direction allowed new capital receipts to be used for one-off revenue purposes to support transformation and efficiency projects that delivered ongoing revenue savings.

The Executive Member for Finance and IT referred to the Capital Investment proposals set out in Appendix C to the report.  He drew attention to Item NCP4 (Royston Leisure Centre Extension), which was a proposed expenditure of £1Million, and which if it proceeded would deliver revenue income for the Council.  In respect of Item ECP12 (Hitchin Swimming Pool Car Park extension), he explained that there had been a Public Inquiry regarding the proposed extension of the car park onto the Butts Close area of Hitchin.  If the result of the Public Inquiry was not favourable to the Council then it may be that the capital budget of £476,000 may need to be re-allocated.

In response to a Member’s request, the Executive Member for Finance and IT undertook to ensure that, where appropriate, all future asset disposals considered the possibility of long leases, as well as the option of outright sale.

RECOMMENDED TO COUNCIL:

(1)       That the inclusion in the proposed Capital Programme of all the new Capital Investment proposals listed in Appendix C to the report, totalling £3.274Million overall (£1.931Million profiled in 2018/19) be approved; and

(2)       That the provisional Capital Programme for 2018/19 to 2021/22 of £17.075Million, as detailed in Appendices A and B to the report, be adopted.

REASON FOR DECISION: To ensure that the Capital Programme meets the Council’s objectives and that officers can plan the implementation of the approved schemes.