Issue - meetings

As detailed in the recommendations.

Councillor Johnson introduced the report and explained the Council had limited capital resources from Welsh Government (WG) to support Council priorities, needs and liabilities. However, it had the powers to fund capital schemes by borrowing - this was temporary and ultimately, the cost and repayment of any borrowing was charged to the Council’s revenue budget.

Schemes funded by borrowing were carefully considered due to the long-term impacts on the Council’s revenue budget.

The report divided the Council Fund Capital Programme into three sections: -

1. Statutory / Regulatory - allocations to cover regulatory and statutory works.

2. Retained Assets - allocations to fund infrastructure works necessary to

ensure service and business continuity.

3. Investment - allocations to fund works necessary to remodel services to

deliver efficiencies outlined in portfolio business plans and invest in services

as outlined in the Council Plan.

Historically, much of the Council’s programme had been funded from capital receipts and grants.  The Council’s ability to generate significant capital receipts was

challenging as the assets the Council had available for disposal diminished. 

Wherever possible every opportunity to identify assets for sale and other sources of funding such as specific grants and revenue contributions would be explored.  However, the Council would need to use prudential borrowing to finance more of the programme going forward.  In particular, the Sustainable Communities for Learning Band B programme, and other schemes included within the investment programme would need to be funded through prudential borrowing.

            Details of the proposed allocation 2024/25 – 2026/27 and the proposed schemes for the period 2024/25 – 2026/27 for the Investment section of the Capital Programme were provided.

            The Chief Executive said a prudent approach towards schemes had been taken due to the pressures in the revenue budget.

            The Corporate Finance Manager explained that the report had been submitted to Corporate Resources Overview and Scrutiny Committee the previous week and there were no significant issues raised.

RESOLVED:

(a)       That the allocations and schemes in Table 3 for the Statutory/Regulatory and Retained Assets sections of the Council Fund Capital Programme 2024/25 – 2026/27 be approved;

(b)       That the schemes included in Table 4 for the Investment section of the Council Fund Capital Programme 2024/25 – 2026/27 be approved;

(c)        That it be noted that the shortfall in funding of schemes in 2024/25 and 2025/26 in Table 5 at this point in the approval process allows flexibility.  Options including a combination of future capital receipts, alternative grants (if available), prudential borrowing or the re-phasing of schemes will be considered during 2024/25 and included in future Capital Programme reports; and

(d)       That the schemes included in Table 6 for the specifically funded section of the Council Fund Capital Programme which will be funded in part through borrowing be approved.