Agenda item

(a)       That the Committee supports the allocations and schemes in Table 4 (paragraph 1.04.1) for the Statutory/Regulatory and Retained Assets sections of the Council Fund Capital Programme 2019/20 - 2021/22;

(b)       That the Committee supports the schemes included in Table 5 (paragraph 1.05.1) for the Investment section of the Council Fund Capital Programme 2019/20 - 2021/22;

(c)       That the Committee notes that the shortfall in funding of schemes in 2019/20 and 2020/21 in Table 6 (paragraph 1.06.1) at this point in the approval process is flexible.  Options including a combination of future capital receipts, alternative grants (if available), prudential borrowing or the re-phasing of schemes will be considered during 2019/20, and included in future capital programme reports;

(d)       That the Committee supports the schemes included in Table 7 (paragraph 1.07.4) for the specifically funded section of the Council Fund Capital Programme which will be funded in part through Prudential Borrowing;

(e)       That the Committee has no specific issues for Cabinet to consider before the Capital Programme 2019/20 - 2021/22 report is considered by Council; and

(f)        That a Member workshop be arranged to discuss long-term and creative borrowing and investment solutions for the Capital Programme.

The Chief Officer (Housing and Assets) introduced a report on the development of the Council funded Capital Programme 2019/20 - 2021/22 including current details of specific grants and borrowing for the 21^st Century Schools Programme and loans to North East Wales (NEW) Homes.  The report set out the different allocations for the three sections of Statutory/Regulatory, Retained Assets and Investment.

Since the overall funding shortfall of £8.216m reported in February 2018, there had been significant positive movement with the generation of capital receipts and additional capital funding from Welsh Government (WG) through an additional General Capital Grant.  This reduced the total estimated shortfall in funding at period 9 2018/19 to £1.428m over the three year period to 2020/21.  Whilst good progress had been made on capital receipts over the past year, this was becoming more challenging over time.  Around £2.3m of capital receipts were estimated over the period, subject to risks on complexity and market forces.  In accordance with the Council’s prudent policy on capital receipts, no allowance was made in the funding position until they were fully achieved.

On proposed allocations for the three years, explanation was given on the rationale for the new schemes to support digital delivery of the school curriculum and the laptop/PC replacement scheme.  An update on specific grants reported on costs associated with the 21^st Century School Band B programme where increased contributions from WG impacted positively on the Council’s contributions.  During an overview of potential future schemes, reference was made to work in the Saltney area as part of the Mutual Investment Model (MIM) where WG intervention rates had increased from 75% to 81%.

Councillor Shotton highlighted a number of commitments within the Capital Programme such as the significant capital investment in schools including support for digital connectivity, together with the upgrading of play areas and synthetic sports pitches.  He welcomed the increased contributions by WG in a number of areas and the continued commitment to support the social care sector.

The additional allocations from WG were also welcomed by the Chief Executive, although the strain on Council budgets remained.  He referred to the need to extend provision at Marleyfield Residential Home and to invest in playschemes to meet demand.

Councillor Johnson suggested that the name of Theatr Clwyd be changed to reflect the Council’s investment and promote Flintshire.  Whilst the Chief Executive agreed to raise this with the Board, he spoke about the success of the Theatre which was highly respected nationwide and one that had a positive brand image.

In speaking about the importance of the Theatre, Councillor Williams said that the name should remain as it was well established and had been held in high regard for some considerable time.

When asked by Councillor Cunningham about the proposed new schemes in the Capital Programme, the Chief Officer (Governance) explained the Council’s responsibility to provide the IT infrastructure for digital connectivity in schools and the need for laptop provision within the Council to be upgraded to address security and operational issues.

Councillor Heesom welcomed the report and said that workshop was required to enable all Members to contribute to the process.  The Chief Executive said that there were no changes in the Investment projects proposed, and that a Member workshop could be arranged to consider the longer term creative financing borrowing solutions to assess the affordability of future projects.  Councillor Heesom formally the proposed workshop and asked that this be prioritised.  Following a question on prudential borrowing in the Capital Programme, the Finance Manager drew attention to Table 7 in the report.

In welcoming the opportunity for this discussion, Councillor Shotton referred to the Ministerial delegation visit where there had been some recognition of the need for an honest debate about the financial needs of Councils in competing demands for WG provision.

Councillor Johnson asked that consideration be given to including the names of proposers in the minutes of meetings.  The Chairman requested that this be referred to the Constitution & Democratic Services Committee.

RESOLVED:

(a)       That the Committee supports the allocations and schemes in Table 4 (paragraph 1.04.1) for the Statutory/Regulatory and Retained Assets sections of the Council Fund Capital Programme 2019/20 - 2021/22;

(b)       That the Committee supports the schemes included in Table 5 (paragraph 1.05.1) for the Investment section of the Council Fund Capital Programme 2019/20 - 2021/22;

(c)       That the Committee notes that the shortfall in funding of schemes in 2019/20 and 2020/21 in Table 6 (paragraph 1.06.1) at this point in the approval process is flexible.  Options including a combination of future capital receipts, alternative grants (if available), prudential borrowing or the re-phasing of schemes will be considered during 2019/20, and included in future capital programme reports;

(d)       That the Committee supports the schemes included in Table 7 (paragraph 1.07.4) for the specifically funded section of the Council Fund Capital Programme which will be funded in part through Prudential Borrowing;

(e)       That the Committee has no specific issues for Cabinet to consider before the Capital Programme 2019/20 - 2021/22 report is considered by Council; and

(f)        That a Member workshop be arranged to discuss long-term and creative borrowing and investment solutions for the Capital Programme.