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Agenda item

Capital Strategy 2018/19 to 2022/23 Forecast Position for 2017-2018 and Future Years Forecasts Summarised up to 2031-2032

Report of the City Treasurer.

Minutes:

5.1       Steven Mair introduced the report and highlighted the changes which had been made to the programme since it was approved by Council on 8 November 2017. He confirmed that the programme was fully funded.

 

5.2         RESOLVED:

 

1.         That the capital strategy as set out in the report be approved.

 

2.         That the capital expenditure for the General Fund as set out in Appendix A of the report for 2018/19 to 2021/22 and future years to 2031/32 be approved.

 

3.         That the capital expenditure forecasts for the General Fund as set out in Appendix A of the report for 2017/18 be approved.

 

4.         That the expenditure forecast for 2017/18 for the Housing Revenue Account (HRA) as set out in Appendix B of the report be approved.

 

5.         That the capital expenditure for the HRA for 2018/19 to 2022/23 as in accordance with the 30 year HRA Business Plan and as included in Appendix B of the report be noted.

 

6.         That the financial implications of the HRA capital programme, including the references to the debt cap and the level of reserves as detailed in Sections 10.19 and 10.20 of the report, be noted.

 

7.         That it be approved that in the event that any additional expenditure is required by a capital scheme over and above this approved programme, the revenue consequences of this will be financed by revenue savings or income generation from relevant service areas.

 

8.         That it be approved that all development and investment projects follow the previously approved business case governance process as set out in section 6.9 to 6.18 of this report.

 

9.         That it be approved that no financing sources unless stipulated in regulations or necessary agreements are ring fenced.

 

10.      That it be approved that contingency in respect of major projects are held corporately with bids for access to those contingencies to be approved by the Capital Review Group (CRG) in the event they are required to fund capital project costs, as detailed in Section 11.15 to 11.19 of the report. That it be noted that these total £594.505m from 2017/18 to 2031/32 but include a sum of £400m which is an allowance for general capital expenditure (e.g. highways improvements) in future years beyond 2021/22.

11.      That approved last year, the Council plans to use capital receipts to fund the revenue costs of three eligible proposals – the refurbishment of Westminster City Hall (£18m), the Digital Transformation programme (£3m) and a contribution to the pension fund deficit (£30m) under the MHCLG Guidance on the Flexible Use of Capital Receipts if considered beneficial to the Council’s finances by the City Treasurer at year end.

 

12.      That the financing of the capital programme and revenue implications as set out in paragraph 13.22 of the report be approved.

 

13.      That approval be given to the financing of the capital programme to be delegated to the City Treasurer at the year end and to provide sufficient flexibility to allow for the most effective use of Council resources. 

 

5.3           Reasons for Decision

 

The Council is required to set a balanced budget and the capital strategy and subsequent capital programme form part of this process, along with the governance process to monitor and manage the programme.

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