Agenda item

To consider the report of the Director Finance.

Agreed:

RECOMMENDED that Council approves:-

(1) the overall financial position for the 2023/24 Annual Capital Programme; and

(2) the amendments and further funding requests to the Council’s Annual Capital Programme for 2024/25.

(3) £85,000 for the City Wall following tender returns, £185,000 to complete the RAMM re-roofing works and £88,120 as a contribution to a scheme to repair the roof at St Nicholas Priory.  The additions would be funded by borrowing.

Reason for Decision: As set out in the report and as amended at the meeting.

The Executive received the report on the overall financial performance of the Council for the 2023/24 financial year in respect of the annual capital programme and sought approval of the 2024/25 revised capital programme, including commitments carried forward from 2023/24.

The Leader moved an additional recommendation to read as follows:-

·         (3) £85,000 for the City Wall following tender returns, £185,000 to complete the RAMM re-roofing works and £88,120 as a contribution to a scheme to repair the roof at St Nicholas Priory. The additions would be funded by borrowing.

The Director Finance explained that the additional recommendation related to the budget for the city wall tender which originally came back in excess of £1million, prompting the team to re-design the scheme to go back out to tender. The new tenders came back at a more affordable price, but above the set budget, after the report was published. He further explained the tenders for the RAMM re-roofing works and contribution to repair the roof at St Nicholas Priory. To ensure the Council did not lose these opportunities, the additional recommendations had been requested.

Particular reference was made to:-

·         although the capital programme was funded by borrowing, the Council was looking to use cash reserves to fund in the short term and would not be engaging in long-term borrowing until interest rates dropped to a suitable level;

·         the total capital spend for the year was £5.6 million, from the approved revised capital programme of £72million. The finance team had been working closely with project managers to better align the capital programme; and

·         the programme going forward would be around £27million with the timing of some schemes including the Guildhall shopping centre outside of the Council’s control.

The Director Finance confirmed that that the £88,000 would only be paid as and when external funding was received.

Opposition group leaders spoke on the item and made the following points:-

·         Cllr Mitchell – enquired on whether the additional recommendation for the city wall include the work for the Northernhay Gardens section?

During the discussion, the following points were made:

·         did the £1.5million and additional £85,000, complete the work on the wall?

·         was the Council borrowing from its reserves at 0% interest and what was the period for repayment?

·         was it the repair work referring to the section of wall by the city gate house?

·         had grant funding options been considered for the repair work?

In response to questions raised, the Director Finance advised that:-

·         the section of wall for repair was by the city gate and the Council was using cash to fund the project;

·         although there was a 0% borrowing rate, there would be a loss of investment interest on the cash, which was better in the longer-term financial interest;

·         grant funding had been looked at and would continue to be considered going forward; and

·         depending on the terms of the grant, it could be considered if an opportunity rises after the money is borrowed for use on other parts of wall or other historic buildings.

The Leader moved, and Councillor Wright seconded, the recommendations which were voted upon and CARRIED as amended, unanimously.

RECOMMENDED that Council approves:-

(1) the overall financial position for the 2023/24 Annual Capital Programme; and

(2) the amendments and further funding requests to the Council’s Annual Capital Programme for 2024/25.

(3) £85,000 for the City Wall following tender returns, £185,000 to complete the RAMM re-roofing works and £88,120 as a contribution to a scheme to repair the roof at St Nicholas Priory. The additions would be funded by borrowing.