Agenda item

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

The report of the Director of Function (Resources)/Section 151 Officer incorporating the final proposed capital budget for 2021/22 was presented for the Executive’s consideration and endorsement.

Councillor Robin Williams, Portfolio Member for Finance reported that in developing the  capital budget for 2021/22 a funding shortfall was identified which it is proposed is bridged from the General Balances on the back of the forecast underspend on the 2020/21 Revenue Budget. As with the draft proposals for the 2021/22 Revenue Budget, the draft Capital Programme for 221/22 was the subject of public consultation and the substance of the responses received is summarised in section 2 of the report. In proposing the capital programme for 2021/22, the Portfolio Member said that he was mindful of the challenges ahead with regard to capital expenditure and resourcing.

The Director of Function (Resources)/Section151 Officer advised the Executive with regard to the changes since the draft Capital Programme was presented in January 2021 as reflected in section 3 of the report the main one being the funding of Chromebooks for schools by external grant rather than by general reserves which has been incorporated within the proposed updated 2021/22 Capital Programme at Table 2. Additionally, the predicted £22m underspend on the current 2020/21 Capital Programme is based on the projected outturn position at the end of Quarter 3. The actual outturn position at the end of Quarter 4 will be reported to the Executive in a separate capital outturn report and any slippage amounts requested to be carried forward to 2021/22 will be subject to the Executive’s approval at that stage. Capital grants may also be received after the budget setting process meaning that schemes may be added to the programme and the budget total may therefore change.

Councillor Aled Morris Jones, Chair of the Corporate Scrutiny Committee reported from the Committee’s 16 February meeting and he confirmed that following discussion and having regard to the public consultation process the Committee had supported the 2021/22 capital budget proposals. 

Councillor Dafydd Roberts, Chair of the Finance Scrutiny Panel reported that the Panel had noted that the public responses to the consultation indicated that there was less support for investment if that leads to increased Council Tax. With regard to the longer term outlook, the Panel was concerned about the condition of the Council’s buildings especially its schools and the prospects with regard to investing in them.

It was resolved to recommend to the Full Council the following capital programme for 2021/22 –

                                                                                                £

2020/21 Schemes Brought Forward                                   4.000m

Refurbishment/Replacement of assets                              4.137m

New one-off capital projects (Priority Projects)                0.780m

New one-off capital projects (Subject to funding

being made available)                                                          0.325m

21^st Century Schools                                                            6.600m

Housing Revenue Account                                               20.313m

Total Recommended Capital Programme

2021/22                                                                                36.155m

Funded by –

General Capital Grant                                                          2.163m

Supported Borrowing General                                            2.158m

General Balances                                                                 0.291m

General Balances (if sufficient funding available)            0.325m

21^st Century Schools Supported Borrowing                     2.897m

21^st Century Schools Unsupported Borrowing                 0.498m

HRA Reserve and In Year Surplus                                   15.639m           

HRA Unsupported Borrowing                                             2.000m

External Grants                                                                     6.184m

2021/21 Schemes Brought Forwards

(External Grants)                                                                  4.000m

2021/22 Total Capital Funding                                         36.155m