Issue - meetings

As detailed in the recommendations.

The Corporate Finance Manager introduced the proposals for the setting of a prudent Minimum Revenue Provision (MRP) for the repayment of debt in 2015/16, as required under the Local Authorities (Capital Finance and Accounting) (Wales) (Amendment) Regulations 2008 (‘the 2008 Regulations’).

The Regulations required the authority to each year make an amount of MRP which it considered to be ‘prudent’.  The Welsh Government (WG) guidance provided for a number of options for making ‘prudent provision’, conditions for using the options and practical consideration, full details of which were in the report.

Also, from 1 April 2015 the calculation of the Housing Revenue Account (HRA) MRP would be similar to the Council Fund, with modifications as detailed in the report.

RESOLVED:

That the following be recommended to Council on 17 February 2015 for approval:

1. Option 1 (Regulatory Method) be used for the calculation of the MRP in 2015/16 for all capital expenditure funded from supported borrowing; this represents a continuation of the approved and adopted policy for 2014/15
2. Option 3 (Asset Life Method) be used for the calculation of the MRP in 2015/16 for all capital expenditure funded from unsupported (prudential) borrowing; this represents a continuation of the approved and adopted policy for 2014/15.

That the following be recommended to Council on 17 February 2015 for approval for the HRA:

Option 2 (Capital Financing Requirement Method) be used for the calculation of the HRA’s MRP in 2015/16 for all HRA capital expenditure funded by debt.  This represents a continuation of how the calculation has been carried out in 2014/15, all though the governing regulations have changed for 2015/16