Agenda item

The Service Lead, Finance summarised the Capital Strategy 2019/24 and the capital programme for 2019/20.  The Cabinet would be considering the strategy on 4th February 2019 and would be recommending it to full Council on 21^st February.

There would be significant capital investment of £239m to 2024 and the strategy was aligned to the Five Year Plan.  The programme included £39.8m to for schools expansion; £61.5m on improvements to the Council’s housing stock; £40.8m for James Elliman Homes; £25m for the hotel scheme on the Old Library Site; and £15m for the development of new community centres and hubs.  The programme was funded from various sources including grants and capital receipts with a majority funded through borrowing.  The links to the Treasury Management Strategy in supporting the significant programme of investment was noted.

Members discussed the impact of borrowing on the revenue budget and it was confirmed that the notional cost would be an increase of up to £4.1m per annum.  However, the annual income from strategic acquisitions was c. £4m and the assets were increasing in value over time.  The investment in schools, housing and regeneration also delivered significant service and community benefits to residents and the strategy overall was therefore considered to affordable and balanced.

The Committee discussed the sources of income and agreed to receive a report early in the next municipal year outlining the process regarding the allocation of funds from S106 receipts, information regarding why the Council currently held approximately £14.4m unspent S106 receipts, clarification relating to the time period the Council had to allocate/use the monies prior to it having to be paid back to developers and details of the number of incidents when this had occurred.

At the conclusion of the discussion the Committee noted the Capital Strategy 2019/24.

Resolved –

(a)  That details of the Capital Strategy 2019/24 as set out in the report, be noted.

(b)  That the July 2019 Committee receive a report regarding S106 Receipts and allocation of these funds within the Capital Programme 2018/19 and Capital Strategy 2019/24.