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Agenda item

Agenda item

Minutes:

The report presented the year end position for the Authority’s capital programme including how this had been financed and the impact of slippage from the 2019/20 capital programme into the 2020/21 programme. 

 

The year end position for the Authority’s capital programme showed total expenditure of £2.9m compared with the budget of £3.6m, with the difference being slippage of £0.6m and an underspend of £0.1m.  It was noted that slippage was a timing issue dependent on the progress of capital schemes and not an indication of future underspends.  The Director of Corporate Services highlighted:

 

·        Pumping Appliances - slippage of £338k related to delays in build, as design issues of the crew cab were finalised.  Delivery was still expected during the financial year however this had been impacted by covid-19 as the supplier who was based in Scotland had been subjected to stringent lockdown measures. 

 

In response to a question raised by County Councillor O’Toole the Director of Corporate Services confirmed that there was a fixed price on the remaining vehicles and that quality assessments were done during the build and final delivery and there had been no significant issues on previous vehicles received under this contract.

 

·        ICT Systems – underspend of £211k.  Following a review of the need to replace or maintain systems 2 did not need replacing at this time hence the underspend.

 

·        Buildings – £4m capital project was ongoing at Training Centre for workshop development.  Revised pricing for that contract was currently awaited.  Initial design work had been included in the cost in 2019/20.  However, the whole budget had been transferred into next year and there was a slight overspend on the building element which was a timing issue.  The overall cost of the project was not known until the final price had been received from the contractor.  This gave an overspend this year.

 

The programme had been financed in year, from a combination of revenue contributions (£2.0m), the drawdown of capital reserves (£0.9m), as detailed in appendix 1 of the report.

 

Prudential Indicators 2019/20

Under the prudential framework the Authority was required to identify various indicators to determine whether the capital programme was affordable, prudent and sustainable.

 

The revised indicators, after allowing for the various changes to the capital programme, were set out in the report alongside the actual outturn figures which confirmed that performance had been within approved limits.

 

The Impact of Slippage from the 2019/20 Capital Programme into the 2020/21 Programme

The original approved capital programme for 2020/21 was £10.8m. This had been updated to reflect the final level of slippage of £0.6m, therefore the final proposed capital programme for 2020/21 was £11.4m, funded from capital grant, revenue contributions and capital reserves.   The revised programme and its funding were set out in appendix 2 and considered by Members.  Whilst it was certain that due to the covid-19 pandemic more slippage would occur during 2020/21, the effect of this was still being reviewed.  However, it was clear that there would be significant slippage in 2020/21.

 

Revised prudential indicators for 2020/21-2022/23 showed that the revised programme remained affordable, prudent and sustainable.

 

Capital Reserves

The capital programme over the next 5 financial years would use all the capital reserves and receipts.

 

RESOLVED: - That the Committee: -

 

i)     Noted the capital outturn position, the financing of capital expenditure 2019/20 and the prudential indicators; and

ii)    Approved the revised 2020/21 capital programme, and the financing of this and the prudential indicators. 

Supporting documents: