Issue - meetings

General Fund Capital Monitoring

Meeting: 04/10/2022 - Executive (Item 104)

104 2022/23 General Fund Capital Monitoring Statement - Quarter 1 pdf icon PDF 490 KB

To consider the report of the Director Finance.

 

Additional documents:

Decision:

Agreed:

 

RECOMMENDED that Council to approve:

 

(1)   the overall financial position for the 2022/23 annual capital programme; and

(2)   the amendments and further funding requests to the Council’s annual capital programme for 2022/23.

 

Reason for Decision: As set out in the report.

 

 

Minutes:

The Executive received the report on the current position of the Council’s revised annual capital programme and the anticipated level of deferred expenditure into future years. The report further sought approval to amend the annual capital programme in order to reflect the reported variations.

 

Members noted that the amount that the Council could borrow, was linked to the central government borrowing rates, with large fluctuations in the cost of borrowing for both central and local government. Following intervention from the Bank of England, the amount that the Council could borrow had reduced with interest rates being 2.9% higher than interest rates in December 2021.

 

Particular reference was made to the longer term borrowing, which was at a fixed rate with no impact on existing borrowed money. However, planning for future borrowing on the Capital Programme, equated to £30,000 a year more for each million that was borrowed.

 

The Director Finance advised that SMB were reviewing the Capital Programme and looking at what could be deferred or stopped, with any proposals being brought back to Members later in the year. At Quarter 1, £38 million of the Capital Programme was being proposed for deferral with reviews to take place, and Members would be updated.

 

Councillor D. Moore, as an opposition group leader, spoke on this item. She enquired about the £38 million capital programme which was introduced based on risk assessments for the capital structure and what would happen for immediate risks to health and safety. She further enquired about St. Sidwells Point and if the final amount would be disclosed this year?

 

The Director Finance explained that a major conditions survey was undertaken which highlighted issues and that health and safety issues were a priority. The St. Sidwell’s Point contract was with legal services and an update would be brought to Members within this financial year, once all negotiations were finalised.

 

RECOMMENDED that Council approve:

 

(1)  the overall financial position for the 2022/23 annual capital programme; and

(2)  the amendments and further funding requests to the Council’s annual capital programme for 2022/23.