Agenda item

[Report of the Chief Operating Officer. To be introduced by the Leader of the Council.]The report will seek approval of the programme of capital investment proposals to support the Council's long term Capital Strategy.

The Leader of the Council introduced the report which provided a long term view of the assets required to deliver its Corporate Plan Priorities and to support its Medium Term Financial Strategy. The 10 year capital programme had been considered by Overview and Scrutiny at their meeting on the 6^th of June and had been noted. The Capital Programme would next go forward to full Council in July for approval.

In response to Cllr Engert’s question, the Leader provided the reasoning behind the Council’s indicative allocation of capital funding to future Council headquarters which took account of the type of sites likely to be available, together with their likely cost, and needing to consolidate the workforce to a site that cost less to run in the long term. It was important to note that these were indicative figures, contained at appendix 1, for what would happen if the council developed large amounts of Council land for much needed housing as part of the regeneration of Wood Green, but there was no specific proposal on the Council’s headquarters.

In response to Councillor Engert’s second question, the Leader outlined that the Greenman site was included at Appendix 2 [ schemes that require further business case] because, importantly , there was  a current consultation exercise on this site and the outcome of this consultation exercise could not be pre -determined.  The Leader provided assurance that the Greenman site had not been excluded from the capital programme but the business case would likely need further work and refinement as other sites included at appendix 2.

RESOLVED

1. To recommend to full Council the approval of the 10 year capital programme (Appendix 1) which replaces the current capital programme.
2. To note the programme of schemes being developed for future Business Case approval through the Capital Board (Appendix 2).
3. To note the affordability position and proposed capital financing arrangements.
4. To note the proposed Governance and role of Capital Board in developing scrutinising and challenging the programme.

Reasons for decision

To update approved capital programme aligned to the Capital Strategy.

To set out governance arrangements for future development of programme and strategy.

Alternative options considered

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

There were a number of funding approaches that had 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 was a need to keep under review the balance between the Council’s ambition and the risks associated with borrowing in a challenging financial climate. By taking a longer-term view these risks could be mitigated and managed over time.  The Council’s MTFS would continue to be updated with the on-going revenue effects of capital decisions.