Issue - meetings

Development of 2018/19 - 2020/21 Capital Programme

Meeting: 20/02/2018 - Cabinet (Item 129)

129 Development of 2018/19 - 2020/21 Capital Programme pdf icon PDF 336 KB


As detailed in the recommendations with the following two resolutions:


(e)       That Cabinet welcome Corporate Resources Overview and Scrutiny Committees request for a report on the consequential revenue impacts of capital expenditure; and


(f)        That Cabinet agrees to approach Welsh Government for assistance with any costs arising from:

            (i)         Remedial works to the Flintshire Bridge;

            (ii)        Early sharing of responsibility in advance of any changes arising

                        From the “Red Route”; and

(iii)       Increased wear and tear on Flintshire roads as a result of traffic diverted due to the works on the A55



The Chief Officer (Organisational Change) introduced the Development of 2018/19 – 2020/21 Capital Programme report.


                        The Finance Manager explained that the report built on the Capital Strategy and Asset Management Plan adopted in February 2016 and split the Council Fund Capital Programme into three sections:


1.    Statutory/Regulatory – allocations to cover regulatory and statutory works – examples included providing support to improve and adapt private sector homes (Disabled Facilities Grants), adaptations to schools for children with disabilities, any works required to keep buildings open by Health and Safety requirements;

2.    Retained Assets – allocations to fund infrastructure works necessary to ensure service and business continuity.  Allocations to fund schemes that maintained, enhanced and improved retained assets and infrastructure to deliver services.  Significant needs identified by service plans/condition surveys; and

3.    Investment – to fund costs incurred when remodelling and investing in services.  New schemes arising from Portfolio business plans, the Council Plan, other relevant and emerging plans, and other strategies or emerging Council priorities approved through a selection process based on the provision of a sound business case.


Tables 1 and 2 in the report showed schemes approved by Council in February 2017 for the 2017/18 – 2019/20 Capital Programme and how those schemes were being funded.  When the programme was set there was an overall shortfall in funding of £3.187m although schemes for 2017/18 were fully funded.  The shortfall in funding of schemes in 2018/19 and 2019/20 was kept flexible with options including a combination of future capital receipts, alternative grants, prudential borrowing or scheme phasing over several years.  Progress on addressing that shortfall had been regularly reported to Cabinet and Corporate Resources Overview and Scrutiny Committee during 2017/18.  Capital receipts had now been received which resulted in the programme approved for 2017/18 – 2019/20 being fully funded with a small surplus of £0.201m. 


            Table 3 of the report detailed the general capital funding projected to be available to fund the Capital Programme over the next 3 years.  The Council had developed a prudent policy of only allowing capital receipts to fund capital projects when receipts were actually received.  All of the schemes proposed for inclusion invested in assets and / or reconfigured models of service provision.  The majority of the programme could be funded from capital receipts and WG funding allocations, although there was an overall shortfall which could require funding by borrowing which had revenue implications.  Schemes had therefore been phased over the 3 year period to ensure 2018/19 financial year was fully funded. 


            Table 4 showed the proposed allocations for the period 2018/19 – 2020/21 for the Statutory / Regulatory Retained Assets of the Capital Programme.  Table 5 showed the proposed schemes for the same period for the Investment Section. 


            There was an overall shortfall in projected funding of £8.216m. To meet that shortfall the Council would potentially need to borrow to fund the schemes which had the impact of increasing debt financing costs of interest and revenue provision for repayment of debt in the revenue  ...  view the full minutes text for item 129