Issue - meetings

(a)       That the Capital Strategy be approved; and

(b)       That the following be approved:

·         The Prudential Indicators for 2021/22 – 2023/24 as detailed within Tables 1, and 4-7 inclusive of the Capital Strategy; and

·         Delegated authority be granted for the Corporate Finance Manager to effect movements between the separately agreed limits within the authorised limit for external debt and the operational boundary for external debt (Table 6 of the Capital Strategy)

The Corporate Finance Manager introduced the report which sought approval of the Council’s Capital Strategy.  It explained the requirement for the Strategy, its key aims and the contents of each of its sections.

Under the Prudential Code for Capital Finance in Local Authorities (the Prudential Code), authorities were required to set a range of Prudential Indicators (PI’s).  The Capital Strategy included details of the Council’s Prudential Indicators for 2021/22 – 2023/24.

The key aims of the Strategy were to explain the ways in which the Capital Programme was developed and funded, the potential impact it had on the Council’s Medium Term Financial Strategy (MTFS) and the way in which it related to the Council’s Treasury Management Strategy.  The Strategy was an overarching document and referred to other documents such as the Capital Programme, the Treasury Management Strategy and the Minimum Revenue Provision Policy.  The Strategy was split into a number of sections which were outlined in the report.

The report had been submitted to Corporate Resources Overview and Scrutiny Committee and Cabinet and no issues had been raised.

The recommendations in the report were moved by Councillor Banks and seconded by Councillor Roberts.

Councillor Roberts thanked all officers involved for ensuring the programmes remained financed and liquidity remained good.

On page 27, Councillor Peers asked if an affordability criteria was built in to the funding as Table 2 showed a 500% increase in specific grants/contributions/loans.  The Corporate Finance Manager said there was a significant increase in 2023/24 due to the 21^st Century Schools programme.  Future plans had been built into those calculations and also built into the Medium Term Financial Strategy.

Councillor Richard Jones asked if there was any risk to the Council on the level of debt as outlined in table 5 of the appendix.  The Corporate Finance Manager explained that the level of debt was closely monitored throughout the year to ensure that the debt was below the capital requirement.   The Council was legally obliged to set an authorised limit for external debt each year and to keep it under review. 

RESOLVED:

(a)       That the Capital Strategy be approved; and

(b)       That the following be approved:

·         The Prudential Indicators for 2021/22 – 2023/24 as detailed within Tables 1, and 4-7 inclusive of the Capital Strategy; and

·         Delegated authority be granted for the Corporate Finance Manager to effect movements between the separately agreed limits within the authorised limit for external debt and the operational boundary for external debt (Table 6 of the Capital Strategy).