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 incorporating the draft capital budget for 2017/18 was presented for the Executive’s attention.

The Portfolio Member for Finance reported that the proposed capital programme is an ambitious one and as such it entails more costs. However, it can be said that the current climate of low interest rates makes it a propitious time to undertake capital investment. However, while the proposed investment is substantial, it remains within the Council’s borrowing limits. The draft capital budget in the same way as the draft revenue budget will be subject to public consultation.

The Head of Function (Resources) and Section 151 Officer said that the report has been drafted in line with the Capital Strategy in dividing the proposals into general proposals; 21st Century schools proposals and HRA schemes. The objective in setting out the proposals for the capital budget has

been to seek to ensure they take the priorities within the Corporate Plan forward without putting added pressure on the revenue account in having to fund additional borrowing and the interest charges that go with it. A further report will be presented to the Executive in January, 2017, in relation to the affordability of the capital programme for 21st Century schools. The Officer said that while the proposed programme does commit the Council to funding increased borrowing, the level remains within the limits set out in the Treasury Management Strategy and does not therefore place an unsupportable burden on the Council.

Members of the Executive gave their views on the draft proposals for the 2017/18 capital budget.

It was resolved –

•  To continue to fund the committed schemes as set out in paragraph 3.2 of the report at a total cost of £8.826m, of which £647k will be from the Council’s core funding.

•  To fund expenditure on disabled facilities grants, refurbishment of existing buildings, I.T. assets and vehicles as set out in paragraph 3.3 of the report at a total cost of £2.301m.

•  To approve the funding of the two highest scoring Invest to Save projects as set out in paragraph 3.4 of the report at a total cost of £0.186m.

•  To approve the funding of new capital schemes as set out in paragraph 3.6 of the report at a total cost of £11.675m of which £2.531m will be funded from the Council’s core funding.

•  To approve the funding of £0.76m on Highway Maintenance as per paragraph 3.5 of the report.

•  That further work is necessary to assess the viability of funding the two schemes detailed in paragraph 3.7 of the report via unsupported borrowing.

•  To approve the capital programme for 21st Century schools, subject to a further report to the Executive on the funding of the unsupported borrowing element of the

programme.

•  To approve the inclusion of the Housing Revenue Account schemes, as set out in paragraph 5 of the report in the final capital programme at a total cost of £9.889m.