Agenda item

Decision:

That the removal of the following schemes from the General Fund Capital Programme be approved:

(1)   Guildford Gyratory and Approaches

(2)   Stoke Park office accommodation

(3)   Stoke Park – Home Farm redevelopment

Recommendation to Council (5 October 2021):

(1)        That the Treasury Management Annual Report for 2020-21 be noted.

(2)        That the actual prudential indicators reported for 2020-21, as detailed in Appendix 1 to the report submitted to the Executive, be approved.

Reason:

To comply with the Council’s treasury management policy statement, the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on treasury management and the CIPFA Prudential Code for Capital Finance in Local Authorities.

Other options considered and rejected by the Executive:

None.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.

The Executive considered the annual capital and investment outturn report, which included capital expenditure, non-treasury investments and treasury management performance for 2020-21.

It was noted that expenditure on the General Fund capital programme was £29.4 million against the original budget of £171.5 million, and revised budget of £28.8 million.  The budget for Minimum Revenue Provision (MRP) was £1.64 million and the outturn was £1.29 million.  There was slippage in the capital programme which resulted in a lower Capital Financing Requirement than estimated. There was a need to ensure accurate profiling whilst it was noted that slippage in the capital programme in 2019-20 was also due, in part, to the Covid pandemic. Three capital items were recommended for removal from the programme as the original proposals were no longer relevant having been either surpassed or merged within other evolving projects. The property portfolio continued to perform well. It was noted that the  Council’s assets were currently subject to review alongside the collaboration initiative with Waverley Borough Council in order to better serve the needs of the community. The Council’s investment property portfolio had increased by £5 million and stood at £155 million at the end of the year. Rental income was £8.1 million, and income return 5.8% against the benchmark of 4.6%. Interest paid on debt was lower than budget, due to less long-term borrowing taken out on the general fund because of slippage in the capital programme providing a more positive budget outlook. The Council had complied with prudential indicators and treasury management policy statement and practices for the period.

The outturn report also been considered by the Corporate Governance and Standards Committee at its meeting on 29 July 2021 and the comments arising were set out in the report. The Leader considered that investments for the period had been restrained demonstrating caution and prudence during a challenging period and commended officers for careful budgetary management.

Having considered the report, the Executive

RESOLVED:

That the following schemes be removed from the General Fund Capital Programme:

(1)   Guildford Gyratory and Approaches

(2)   Stoke Park office accommodation

(3)   Stoke Park – Home Farm redevelopment

The Executive further

RECOMMEND to Council (5 October 2021):

(1)        That the Treasury Management Annual Report for 2020-21 be noted.

(2)        That the actual prudential indicators reported for 2020-21, as detailed in Appendix 1 to the report submitted to the Executive, be approved.

Reason:

To comply with the Council’s treasury management policy statement, the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on treasury management and the CIPFA Prudential Code for Capital Finance in Local Authorities.