Decision details

The Executive considered a report for recommendation to Council that sought approval to revisions to the 2017/18 General Fund and Housing Revenue Account Capital Programme and the draft Capital Programme for 2018/19.  The report also provided an update on the Council’s draft 5 Year Capital Strategy and the resources available to fund the Capital Strategy.

The Portfolio Holder for Resources introduced the report.  She explained that the Capital Strategy included £200K in 2018/19 for work on the bus station solution.  The Strategy assumed that the works were to be funded from the LEP (GD3 monies) however, to date, the governance for these funds not been signed off by the Government.  She therefore added a further recommendation that would allow for capital reserves to be used pending the sign off of the GD3 monies.

With reference to the additional recommendation the Chief Executive stated that there was a risk that if the GD3 monies were not agreed it would be necessary to re-prioritise the works capital programme.  However, the work on the bus station could not be delayed and if need be it would be funded directly by the Council.

The Assistant Director (Finance & Estates) stated that the report to Council would include detail of the mitigation in place for the Council’s investment in commercial property making it clear that the investments made were of economic benefit to Stevenage and are prudent.

It was RESOLVED that the following proposals be recommended to Council on 28 February 2018:

1.  That the revised General Fund and HRA 2017/18 capital programme, as detailed in Appendix A and Appendix B to the report be approved.

2.  That the final 2018/19 General Fund Capital Programme as detailed in Appendix A to the report be approved.

3.  That the final 2018/19 HRA Capital Programme as detailed in Appendix B to the report be approved.

4.  That the updated forecast of resources as summarised in Appendix A (General Fund) and Appendix B (HRA) to the report be approved.

5.  That the Government’s potential changes to prudential borrowing and MRP as outlined in paragraph 3.21-3.26 of the report be noted.

6.  That the approach to resourcing the General Fund capital programme as outlined in paragraph 4.3.6 and 4.3.11 of the report be approved.

7. That the growth bids identified for inclusion in the Capital Strategy (Appendix C to the report) be approved.

8. That the 2018/19 de-minimis expenditure limit (section 4.8 of the report) be approved.

9. That the 2018/19 contingency allowance (section 4.9 of the report) be approved.

10. That the work undertaken by LFSG on behalf of the Executive in reviewing and challenging the General Fund Capital Strategy be noted.

11. That in 2018/19 SBC capital reserves be used to fund £200,000 of the Regeneration capital bid assumed from GD3 monies, to allow the SG1 regeneration scheme to progress. This is required because the government has not signed off governance which would allow the release of  GD3 monies.