Agenda item

To submit a report by the Head of Function (Resources)/Section 151 Officer.

The report of the Head of Function (Resources) and Section 151 Officer setting out the final proposals for the 2018/19 Capital Programme was presented for the Executive’s consideration and for recommendation to the full Council on 28 February, 2018.

The Portfolio Member for Finance sad that having regard to the capital strategy adopted by the Executive in October, 2017 he commended the capital programme for 2018/19 to the Executive as presented. He drew attention to the two Invest to Save project bids at section 4 of the report; the Executive needs to determine whether to support either or both of the bids received. The Executive needs to come to a determination also on two unsupported borrowing bids by the Leisure Service – replacement of existing artificial football pitch with a 3G football pitch at Plas Arthur Leisure Centre and upgrading the fitness equipment at Holyhead Leisure Centre - as summarised in section 5 of the report and as detailed in full in Appendix 5.

The Head of Function (Resources)/Section 151 Officer said that funding received through the General Capital Grant and the level of unhypothecated supported borrowing which the Welsh Government funds through the capital financing element of the Standard Spending Assessment have more or less stayed the same over a number of years and signifies a shift in the Welsh Government’s approach which is to fund capital projects via specific capital grants e.g. new schools. This funding has therefore reduced in real terms and the capital strategy proposed that this money be used to maintain existing assets. The strategy also included approximately £600k for Highways. Also, the Welsh Government announced additional grant funding of £30m for 2017/18 of which Anglesey’s share is £910k. This funding can be used to support locally sourced funding for any project in 2017/18 provided that the funds are then used for roads refurbishment in 2018/19.This will provide additional funding of £910k in 2018/19 above the general capital grant. With regard to the two unsupported borrowing project bids by the Leisure Service, the service is confident that in both cases the increased income the investment will generate will be sufficient to cover the capital finance costs.

Having considered the business case presented in each instance, the Executive was supportive of the two bids for unsupported borrowing submitted by the Leisure Service on the basis that they represent much needed investment in leisure provision and because they are expected to generate additional income which will reduce the cost of borrowing on the revenue side.

The Executive, whilst also supportive of both projects for invest to save funding, noted that the two in total marginally exceed the £250k fund earmarked for this purpose. The Head of Function (Resources)/ Section 151 Officer clarified that the two could be funded either by drawing further on funding in reserve or by allocating a reduced amount for the larger Energy Efficiency Corporate Buildings bid.

The Executive further noted that it was disappointed that the Invest to Save initiative had only generated two bids; it highlighted the need for more to be done in future to encourage services to identify opportunities for invest to save ideas.

It was resolved –

•  To recommend to the Full Council the following capital programme for 2018/19:

                                                      £’m

Committed schemes brought

forward from 2017/18                  23.399

Investing in existing assets         2.518

Invest to Save projects                 0.258

Highway Maintenance                  1.592

21st Century Schools                   8.850

Total General Fund Capital

Schemes                                        36.609

HRA Capital Schemes                12.417

Total Proposed Capital

Programme 2018/19                    49.034

Funded by:

Funding B/F from 2017/18           1.040

General Capital Grant                   1.334

Capital Receipts                            0.500

Supported Borrowing                  2.192

Unsupported Borrowing:

21st Century Schools                  3.734

Supported Borrowing:

21st Century Schools                  1.279

External Grants                           28.030

Capital Reserves                           0.258

Highways Refurbishment           0.910

Grant

HRA Funding                                 9.757

Total Funding                              49.034

•  To support the two submitted bids for Invest to Save funding as follows –

Energy Efficiency in Corporate Buildings               £250,000

Upgrading the WiFi Capability at Canolfan Byron  £    8,750

•  To support the following unsupported borrowing projects for inclusion in the 2018/19 capital programme -

The construction of a 3G Football Pitch at Plas Arthur Leisure Centre The upgrade of Fitness Equipment at Holyhead Leisure Centre.