Issue - meetings

As detailed in the recommendations.

The Chief Executive, Head of Finance and Director of Environment jointly presented the proposed allocation of funding to the core capital programme in 2014/15 together with information on the estimated total capital programme, based on current available information. 

            The Chief Executive reported that the indicative funding for 2015/16 included £44.176m related to 21^st Century Schools programme.  Whilst preliminary expenditure on the programme had taken place in 2013/14, the programme was for significant expenditure to commence from 2015/16 to deliver in the investment in Flintshire schools which would be equally funded by Flintshire and the Welsh Government (WG).  

            The Head of Finance highlighted the elements of funding received for the capital programme, specific grants, unsupported (prudential) borrowing and the Local Government Borrowing Initiative as detailed in the report. 

            The Director of Environment reported that the total projected core funding available over the four year period 2014/15 to 2017/18 amounts to £31.898m.  The total resources available in 2014/15 to fund the core capital programme are £7.403m.  The issue of capital receipts continues to be a problematic one for the Council and in the current economic climate it was difficult to predict when disposals would be effected and the fund therefore realised to support the capital programme.  As a consequence it was considered to be imprudent to set capital budgets where the funding may not be realised, therefore, it was recommended that the 2014/15 core capital programme budget be set based on a minimal capital receipts target which would have the effect of reducing the overall core programme indicated in last year’s budget papers by 30%.  It was proposed that any receipts generated over and above the target figure for 2014/15 be kept until the 2015/16 financial year.   

            The Leader of the Council reported on the total projected Council fund capital programme which amounted to £101.361m over the four year period 2014/15 to 2017/18.  He spoke in support of the need to reduce the core capital programme in order to plan for the future and commented on the commitment of the Council to establish a Connects centre in Flint, Connah’s Quay and Buckley.   

            Cabinet Members spoke in support of setting a more prudent capital programme based on capital receipts the Council was confident could be achieved.  

RESOLVED:

(a)       That the report be noted;

(b)       That Cabinet approve the allocation of funding to the core capital programme in 2014/15, as shown in Appendix 1 of the report, including the additional items referred to in Section 5.05 of the report and note the indicative funding available for future years.

(c)        That Cabinet approve the setting of a minimal capital receipts target for 2014/15 and the process whereby receipts generated in one financial year are used to fund expenditure in the next (Sections 5.02.03 and 5.02.4 of the report).