Decision details

10 Year Capital Strategy 2019-2029

Decision Maker: Executive, Council

Decision status: For Determination

Is Key decision?: Yes

Is subject to call in?: No

Decisions:

The Executive considered a report by the Chief Financial Officer (circulated previously), the options and/or alternatives and other relevant facts set out in the report regarding the 10 Year Capital Strategy 2019-2029.

 

The Head of Resources highlighted the following:

 

·         In December 2017, the Chartered Institute of Public Finance and Accountancy, (CIPFA), issued revised Prudential and Treasury Management Codes stating that from 2019/20, all local authorities will be required to prepare a Capital Strategy.

·         The Strategy was required to provide a high-level overview of how capital expenditure, capital financing and treasury management activity contribute to the provision of services, an overview of how the associated risk is managed and the implications for future financial sustainability.

·         This capital strategy document covers the ten year period from 2019/20 to 2028/29 and will be reviewed annually by Full Council prior to each financial year.

·         The Strategy did not include the financial impact of the potential new Leisure Centre or potential addition spend on the Watersports Centre projects.

·         Capital Governance arrangements as detailed in paragraph 5.3 of the report.

·         The current Medium Term Financial Plan included borrowing costs for the Capital Programme approved earlier on agenda.

·         The Capital Strategy for years 2019/20 to 2022/23 (Medium Term) as detailed in paragraph 5.4 of the report.

·         The Capital Strategy for years 2023/24 to 2028/29 (Long Term) as detailed in paragraph 5.5 of the report.

·         Following the District Council elections in May 2019, there would be a need to undertake a review of the service spend and identify savings to reduce the budget gap (both Revenue and Capital).

·         Capital funding and affordability.  Projected external borrowing.  There was a need to challenge the future projects within the long-term capital expenditure to identify whether they were required or could be delayed.  If additional capital receipts were received, there would be a need to use the receipts to reduce the level of borrowing need.

·         Risks with the Capital Strategy as detailed in paragraph 5.6 of the report.

 

RESOLVED that the vote now be taken.

 

            RECOMMENDED

 

That the Capital Strategy 2019/20 to 2028/29 be approved.

 

            REASONS FOR RECOMMENDATION

 

(a)

The Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (SI 2003/3146) requires the Council to have regard to the Treasury Management Code.

 

(b)

To ensure Executive has assurance on the financial standing of the Council and risks associated with the capital strategy.

 

(c)

To ensure Executive have plans in place to deliver the long-term financial strategy of the Council.

 

(d)

To ensure that future capital investments are available and targeted to the Council’s priorities.

 

Councillor R. Cann left the meeting.

Report author: Jon Triggs

Publication date: 05/02/2019

Date of decision: 04/02/2019

Decided at meeting: 04/02/2019 - Executive

Accompanying Documents: