Agenda item

CAPITAL AND INVESTMENT STRATEGY 2020-21 TO 2024-25

The Board considered a report which detailed the Council’s Capital and Investment Strategy, including the new capital programme bids, plus the requirements of the Prudential Code and the Investment Strategy covering treasury management investments, commercial investments and the requirements of the Treasury Management Code and of the Ministry of Housing, Communities and Local Government Statutory Guidance.

The related presentation of the Lead Specialist (Finance) introduced and provided the context to the Capital and Investment Strategy and invited comments and questions in respect of each capital bid.  The introduction stated the requirement to prepare a capital strategy which, in the Council’s case, was its Capital and Investment Strategy that linked together the capital programme, asset investment and treasury management.  The related process involved reviewing the balance sheet, which was the commencement point, considering the capital programme as this impacted on the balance sheet and then identifying how to fund the capital programme which informed the treasury management function.  In terms of context, the capital programme was split into the three areas of business as usual (BAU), development financial and development non-financial.  The affordability limit of BAU schemes was linked to increases in the Council Tax each year.  The total capital programme was currently £407 million gross expenditure with new bids totalling £49 million.  There was an underlying need to borrow £290 million rising to £338 million should the new bids be approved for inclusion in the capital programme.

Having received the notes of the Joint EAB Budget Task Group meeting held on 19 December 2019, the Board considered the new capital bids and commented as follows:

1.           Sutherland Memorial Park - Phase 1 Calorifier (Water Heater) Replacement

The Board indicated its support for this bid without further comment.

2.           Sutherland Memorial Park Main Pavilion Amenity Club - Refurbishment Works

This bid was accepted by the Board without comment.

3.           Sutherland Memorial Park Cricket Pavilion - Internal Alteration and Refurbishment

A member of the Joint EAB Budget Task Group advised that the Group’s queries relating to this bid had been answered and a revised bid had been submitted.

4.           Property Acquisition Fund

This bid had been adjusted to reflect the Investment Property Fund Management Group’s consideration of the Council’s policies in terms of climate change and ethical investments and to address related issues.  Additional priority would be given to investments with "green" credentials.

5.           Phase 4 Public Realm Scheme

This bid had been withdrawn

6.           New House – Refurbishment of Office Space

The Board noted that this project had attracted rental income of £1.1 million.

7.           Climate Change & Energy Project Funding – Consolidated Bid

The Board supported this bid which sought a budget to fund Climate Change and Energy related projects.  The bid was at an early stage and related priorities and projects and would be developed.  Measuring of current emissions was currently taking place to inform future work.

8.           Installation of LED lighting to various community sites

This bid was supported by the Board without comment.

9.           Multi-storey Car Park Repairs and Maintenance

The Board was advised that this was a regular car park maintenance bid.

10.        Installation of Air Source Heat Pump Heating and Hot Water System to the Citizens Advice Bureau

As there were two Citizens Advice Bureaux (CAB) in the Borough, a councillor requested that this bid identify which CAB it related to.  A member of the Joint EAB Budget Task Group requested that the Group receive more detailed information relating to bids at an earlier stage in future years to facilitate consideration.

The following additional points were made in relation to the report:

·             The expansion and improvement of the Aldershot Road allotment site involved inclusion of allotments from the Bellfields site in connection with the Weyside Urban Village development.

·             Checks would be made to ascertain whether the Mill Lane, Pirbright, Flood Protection Scheme had been abandoned.

·             The estimate associated with Pre-SANG costs of bringing forward sites was generic and had been in the budget for a number of years.  Officers would be asked if this capital programme item was still required.

·             The need for an estimate in respect of the removal of barns and concrete hardstanding from land at Tyting Farm was questioned and would be checked.

·             The estimate relating to the replacement of the Spectrum roof was an old bid and the works were in the latter phases and nearing completion.

·             The difference between the mid-year and year end Liability Benchmarks was the Council’s minimum liquidity requirement of £45 million.  The Liability Benchmark was reducing in line with assumed increases in reserves and payments.  The mid-year position showed greater liquidity than the year end level.