Decision details
Corporate Capital Programme 2020/21 - 2022/23
Decision Maker: Executive, Council
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
Decisions:
The Executive received details of the proposed 2020/21Capital Programme. The Council held surplus capital receipts and these receipts, as detailed in Annex C of the agenda report, would be sufficient to fund the entire capital programme and therefore no existing revenue and/or borrowing would have to be used.
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 £11m at 31 March 2021 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.
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.
RECOMMENDED to Full Council that:
(i) new capital bids for £1.479m for 2020/21, as set out at Annex A to the agenda report, be approved, and that they be incorporated into the Capital Programme;
(ii) The Prudential Indicators summarised below and explained in Annex C to the agenda report, including the MRP statement, for 2020/21 to 2022/23 in accordance with the requirements of the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Prudential Code for Capital Finance in Local Authorities 2011 be approved:
Prudential Indicator |
2020/21 Estimated £m |
2021/22 Estimated £m |
2022/23 Estimated £m |
Capital Expenditure |
1.479 |
1.0 |
1.0 |
Capital Financing Requirement |
224 |
221 |
219 |
Ratio of net financing costs to net revenue stream |
19.18% |
18.75% |
18.25% |
Financing Costs |
2.067 |
2.077
|
2.079 |
Operational Boundary |
230 |
230 |
230 |
Authorised Limit |
235 |
235 |
235 |
RESOLVED to note that:
(i) the Capital Financing Requirement for this Council as at 31 March 2021 is estimated to be £224m and as such a Minimum Revenue Payment of £2.2m is required;
(ii) the provisional Capital Programme for 2020/21 to 2022/23; and
(iii) the available capital receipts forecast shown in Annex C to the agenda report.
Report author: Kelvin Menon
Publication date: 12/03/2020
Date of decision: 18/02/2020
Decided at meeting: 18/02/2020 - Executive
Accompanying Documents: