Issue - meetings

As detailed in the recommendations.

Councillor Johnson introduced the report and explained that local authorities were required to set a Minimum Revenue Provision (MRP) policy each financial year.  Local authorities were required to set aside some of their revenue resources as provision for the repayment of debt.

The Council, as part of the budget strategy, conducted detailed reviews of its MRP policy in 2016/17 and 2017/18 and amended the policy as a result.

Changes were required to the policy for 2022/23 with regard to the MRP for the Housing Revenue Account (HRA).  No changes were required to the policy for the Council Fund (CF) MRP.

The report would be considered at County Council later that day.

RESOLVED:

(a)       That the following be recommended to County Council for Council Fund (CF) outstanding debt that:

·         Option 3 (Asset Life Method) be used for the calculation of the MRP in financial year 2022/23 for the balance of outstanding capital expenditure funded from supported borrowing fixed as at 31^st March 2017.  The calculation will be the ‘annuity’ method over 49 years

·         Option 3 (Asset Life Method) be used for the calculation of the MRP in 2022/23 for all capital expenditure funded from supported borrowing from 1^st April 2016 onwards.   The calculation will be the ‘annuity’ method over an appropriate number of years, dependent on the period of time that the capital expenditure is likely to generate benefits

·         Option 3 (Asset Life Method) be used for the calculation of the MRP in 2022/23 for all capital expenditure funded from unsupported (prudential) borrowing or credit arrangements.   The calculation will be the ‘annuity’ method over an appropriate number of years, dependent on the period of time that the capital expenditure is likely to generate benefits

(b)       That the following be recommended to County Council for Housing Revenue Account (HRA) outstanding debt that:

·         Option 3 (Asset Life Method) be used for the calculation of the HRA’s MRP in 2022/23 for the balance of outstanding capital expenditure funded from debt fixed as at 31^st March 2021.  The calculation will be the ‘annuity’ method over 49 years

·         Option 3 (Asset Life Method) be used for the calculation of the HRA’s MRP in 2022/23 for all capital expenditure funded from debt from 1^st April 2021 onwards.  The calculation will be the ‘annuity’ method over an appropriate number of years, dependent on the period of time that the capital expenditure is likely to generate benefits

(c)        That is be approved and recommended to County Council that MRP on loans from the Council to North East Wales (NEW) Homes to build affordable homes through the Strategic Housing and Regeneration Programme (SHARP) (which qualify as capital expenditure in accounting terms be as follows:

·         No MRP is made during the construction period (of short duration) as the asset has not been brought into use and no benefit is being derived from its use

·         Once the assets are brought into use, capital (loan) repayments will be made by NEW Homes.  The repayments made by NEW Homes  ...  view the full minutes text for item 110