Decision details

The Executive Councillor will recommend the Strategy to Council. (Item to be considered by Council on 13 February 2020.)

Matter for Decision

The report outlined the capital strategy of the Council together with a summary capital programme for the General Fund (GF) and the Housing Revenue Account (HRA). The previous capital strategy was approved by Council on 21 February 2019 and the report update focused on providing a framework for delivery of the capital expenditure plans over a 10 – 30 year period.

Decision of Executive Councillor for Finance and Resources

To recommend Council to

i. Approve the capital strategy as set out in this report.

ii. Note the summary Capital programme.

Reason for the Decision

As set out in the Officer’s report.

Any Alternative Options Considered and Rejected

Not applicable.

Scrutiny Considerations

The Committee received a report from the Head of Finance.

The Committee made the following comments in response to the report:

i.               Referred to paragraph 5.26 of the officer’s report and asked what the implications would be regarding the removal of the debt cap.

ii.             Referred to paragraph 7.23 of the officer’s report and asked whether the council worked to target parameters regarding the use of investment property income to support the costs of services.

iii.            Referred to section 7 of the officer’s report and expressed concern regarding the liquidity of the council’s assets as it invested in commercial property.

The Head of Finance said the following in response to Members’ questions:

i.         The Housing Revenue Account (HRA) Budget Setting Report began to consider how the HRA might use debt in the future to fund development. At the moment the debt cap would not be exceeded.

ii.          The use of investment property income to support the council’s activities had been established over many years, the council considered 50% to be the prudent maximum level of this indicator. This figure was likely to increase rather than reduce as a result of the council’s plans for redevelopment.

iii.          The council had £170 million in commercial investments and over £100 million in cash so the council had significant liquidity.  There were plans for investment and the Finance Team kept an eye on the liquidity of council assets daily.

The Committee resolved by 3 votes to 0 to endorse the recommendations.

The Executive Councillor approved the recommendations.

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

No conflicts of interest were declared by the Executive Councillor.