Agenda item

Members were reminded that Financial Regulations stated that as part of the annual budget process the Council, following recommendation by the Executive, was required to approve formally the Capital Programme and its revenue implications.  In addition, the Council had a statutory requirement under the Local Government Act 2003 to adopt the CIPFA Prudential Code and to approve Prudential Indicators on an annual basis.

The Executive received details of the Capital Programme for 2016/17 and noted its effect on the available capital receipts. This indicated 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.  Additional capital receipts could be realised from the sale of Council assets although there was a risk in the current climate that prices would be depressed or that such sales would not be realised.

The Revenue Capital Fund was estimated to be about £9.0m as at 31 March 2016 and would be used to support the Capital Programme if required. However this reduced the amount of reserve available to support revenue expenditure and hence the General Fund in the future. The Council had undertaken borrowing during 2015/16 to fund significant property acquisitions and would be prepared to do this again should the need arise.

Members noted the estimated loss of investment income as a result of the proposed capital programme.

Recommended to the Council that

(i)              the new capital bids for £670k for 2016/17 at Annex A to the agenda report be approved, and be incorporated into the Capital Programme;

(ii)            the Prudential Indicators summarised below and explained in Annex D of the agenda report, including the MRP statement, for 2016/17 to 2018/19 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;

Resolved to note

(i)              that the Capital Financing Requirement for this Council as at 31 March 2017 is estimated to be £19,982m and as such a Minimum Revenue Payment of £202k is required;

(ii)            the provisional Capital Programme for 2017/18 and 2018/19; and

(iii)          the available capital receipts forecast shown in Annex C to the agenda report.