Agenda item

Corporate Capital Programme 2018/19 – 2020/21

Minutes:

The Executive received details of the proposed 2018/19 Capital Programme, as shown in Annex A to the agenda report. The Council no longer held any surplus capital receipts. As a result, only in-year receipts could be offset against the proposed spend. Annex C to the agenda report showed that it would not be possible to fund the current Capital Programme from capital receipts and that existing revenue and/or borrowing would have to be used.

 

Within the 2018/19 Capital programme there was an amount of £3.2m relating to refuse vehicles which had been transferred from the 2017/18 capital programme as the expenditure would not be incurred until Summer 2018.

 

Additional capital receipts might be realised from the sale of Council assets and if this was the case they would be applied against capital spend thereby reducing borrowing.

 

The Revenue Capital Fund was estimated to be about £9.145m at 31 March 2018 and could be used to support the Capital Programme if required.  However, this would reduce the amount of reserve available to support revenue expenditure and hence the General Fund in the future.  The Council had undertaken borrowing during 2017/18 to fund significant property acquisitions and was prepared to do this again, should the need arise. 

 

Additional capital schemes might be brought during the year for the Executive and Council to consider.  These might result in a change to the Prudential Indicators, the Capital Financing Requirement and the Minimum Revenue Payment . If this was the case those changes would be reported to the Executive and Council.

 

The Finance Portfolio Holder undertook to respond by email to questions relating the London Road Recreation Ground Disabled Access Improvements and the Camberley Theatre Conferencing Facilities Schemes.

 

RECOMMENDED to Council that

 

(i)          the new capital bids for £8.584m, as set out at Annex A to the agenda report, for 2018/19, be approved and incorporated into the Capital Programme;

 

(ii)        the Prudential Indicators, as set out below and explained at Annex D to the agenda report, including the MRP statement, for 2018/19 to 2020/21 in accordance with the requirements of the Chartered Institute of Public Finance and Accountancy’s Prudential Code for Capital Finance in Local Authorities 2011, be approved.

 

 

Prudential Indicator

2018/19

Estimated

£000

2019/20

Estimated

£000

2020/21

Estimated

£000

Capital Expenditure

8,584

2,270

630

Capital Financing Requirement

150,000

150,000

148,000

Ratio of net financing costs to net revenue stream

5.14%

2.61%

2.65%

Incremental impact of investment decisions on Band D council Tax

1.61

9.40

 

0.43

Operational Boundary

185,000

185,000

185,000

Authorised Limit

190,000

190,000

190,000

 

RESOLVED to note

 

(iii)      that the Capital Financing Requirement for the Council as at 31 March 2019 was estimated to be £150m and as such a Minimum Revenue Payment of £1.369m was required;

 

(iv)      the provisional Capital Programme for 2019/20 and 2020/21; and

 

(v)        the available capital receipts forecast shown, as set out at Annex C to the agenda report.

 

(Note: Subsequent to the meeting it was confirmed that reference to the London Road Recreation Ground Disabled Access Improvements had been included in error as the scheme had been incorporated in the Capital Programme for 2017/18.)

 

 

Supporting documents: