Issue - meetings

[To be introduced by the Cabinet Member for Resources and Culture. Report of the  Chief Operating Officer.] The report will seek approval to the Council’s Capital Strategy and ask  Cabinet to note the process for agreeing the detailed schemes to be included for approval as part of the Council’s Capital Programme.

The Cabinet Member for Resources and Culture introduced the strategy which set out the basis which will underpin the Council’s discussions about the need for assets and direct the approach for acquiring and maintaining operational assets. The strategy also set out the key role that the Council’s assets would play in delivering the Council’s key priorities of regeneration, business growth, and growth in employment and housing growth.

It was noted that the strategy aligns with the Cabinet decision to seek a development partner to deliver investment and regeneration to the borough.

It was noted that the more detailed capital schemes will still come forward to Cabinet for approval.

In response to Councillor Engert’s question on Member oversight of the Capital programme, it was noted that there would be strong oversight of the programme by the Cabinet and also through the Cabinet Member. Corporate Committee would also have a monitoring role through their responsibility for Treasury Management Strategy.

Agreed Councillor Engert is supplied with a written response to her questions on the viability of using capital receipts to fund a swimming pool in the Wood Green area and what the reduction will be in capital receipts if the council has to hand back  to the treasury unused RTB receipts.

RESOLVED

1. To approve the Council’s Capital Strategy (Appendix 1).
2. To note the process for agreeing the detailed schemes to be included for approval as part of the Council’s Capital Programme (Paragraph 6.8).

Reasons for decision

In order to guide its capital investment priorities and provide the basis for investing in its assets the Council has developed a Capital Strategy. The strategy considers the external environment and the financial context within which the Council is operating in order to ensure that long term investment is based on a firm understanding of its priorities, needs and constraints.

Alternative options considered

The Council could continue to determine and approve an annual capital programme based on its immediate needs; however this approach has been discounted as it will tend to prioritise those projects which can be developed quickly rather than those that support a more strategic view of the Council’s needs. It will also potentially be limited by short term decisions on funding options which may not be the most effective approach.

There are a number of funding approaches that have also been considered ranging from restricting expenditure to the extent to which capital receipts can continue to be generated, to a longer term view based on leveraging additional external resources and anticipating revenue streams in support of borrowing. There is a need to keep under Review the balance between the Council’s ambition and the risks associated with borrowing in an uncertain financial climate, but by taking a longer term view these risks can be smoothed over time. The Council’s Medium Term Financial Strategy will continue to be updated with the on-going revenue effects of capital decisions.