Agenda item

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 2021/22 capital programme into the 2022/23 programme. 

The final capital programme for 2021/22 was £4.451m.  Total capital expenditure for the year was £3.350m, reflecting £1.083m of slippage and an underspend of £18k, as set out in the report as now considered, and in appendix 1.  The programme had been financed in year, from a combination of revenue contributions (£2.373m) and a drawdown of capital reserves (£0.977m).

Prudential Indicators 2021/22

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 2021/22 Capital Programme into the 2022/23 Programme

The original approved capital programme for 2022/23 was £8.9m. This had been updated for slippage as set out in the report.  In addition, a review of likely timing of capital schemes had been undertaken and as a result £0.9m of property and £0.2m of ICT schemes needed to be slipped into 2023/24.

As a result, the final proposed capital programme for 2022/23 was £9.0m, which was funded from capital grant, revenue contributions, earmarked reserves and capital reserves. The revised programme and its funding were considered by Members as set out in appendix 2.  It was noted that additional budget requirement for vehicles included 5 additional vehicles for flexi duty officers which reflected how many officers had chosen to move to a provided vehicle.  The Director of Corporate Services explained that as new Officers took up posts the vehicle requirement could change hence it was proposed that the Treasurer be able to agree an increase in vehicle provision up to a maximum of a further 3 vehicles per annum.

The report set out revised prudential indicators for 2022/23-2024/25, showing that the revised programme, despite requiring some borrowing in 2024/25 remained affordable, prudent and sustainable.

Capital Reserves

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

In response to a question raised by County Councillor Steve Rigby the Director of Corporate Services advised that new vehicles were hybrid vehicles and a policy decision was taken many years ago to purchase vehicles outright (rather than lease) based on a view that this was marginally cheaper and it gave greater flexibility.

In response to a question raised by County Councillor O’Toole regarding the policy on vehicle usage, the Director of Corporate Services advised that the Service policy prohibited private use (unless staff were on 24?hour duty).

RESOLVED: - That the Committee: -

i)     Noted the capital outturn position and the financing of capital expenditure 2021/22;

ii)    Approved the revised 2022/23 capital programme, and the financing of this and the prudential indicators;

iii)   Delegated approval to the Treasurer to increase the capital programme in respect of Flexi Duty Officer cars up to a maximum of 3 additional vehicles in any one year, such approval to be retrospectively reported to the Committee.