Issue - meetings

That the presentation be welcomed and used as the template for further reports on the Capital Programme.

The Chief Executive informed Members that the presentation was intended to provide information on the impacts and benefits of the investments within the Capital Programme and included practical examples with a view to using this format for future presentations.

                        The Corporate Finance Manager introduced the Interim Finance Manager - Capital & Technical to Members.  The Finance Manager explained the potential revenue impacts of major capital schemes and highlighted the Investment Section of the 2018/19 Capital Programme to Members.  The direct costs were explained, which included borrowing costs, capital and revenue running costs and the direct benefits and income generation that may result in such schemes.    There were also some indirect impacts that was difficult to quantify which included customer quality experience and performance.

                        The Chief Executive explained that a number of examples could have been used, but that it had been decided to use two models in the area of social services.  Model 1 – Marleyfield Care Home was a 32 bed establishment which also included a dementia care provision.   The direct costs and benefits were explained, including the potential to increase self-funding placements.  Indirect benefits included it being less costly to  provide in-house provision than to commission external places.

Model 2 – Glanrafon Day Care Centre was a new establishment to be built on the former John Summers High School site.  The direct costs and benefits included no borrowing costs as the scheme would not be funded from prudential borrowing, and this would avoid spending £280k on essential repairs on the existing facility.   Indirect benefits included in the long term savings of £1.5m and the avoidance on 3 potential Out of County Placements saving £54k per year.

                        Members welcomed this template and examples provided on how this affected Service Users.

            Councillor Hillary McGuill suggested that before the disposal of old equipment it should be assessed to see if this could be used for another purpose or by any clubs.   The Chief Executive agreed this was a good point and was sure some equipment could be re-used or sold.

The Chairman thanked Officers for the presentation which was a model example of how to present complex information, and it was agreed that a note of appreciation be sent to Susie Lunt for her contribution to developing the new approach.

It was confirmed that an update on the Capital Projects investments would be prepared for July on a similar basis to that used for the Revenue Consequences of Capital Expenditure presentation.

RESOLVED:

That the presentation be welcomed and used as the template for further reports on the Capital Programme.