Agenda item

* RESOLVED –

That the Cabinet recommends to the full Council that:

1.   The updated General Fund Capital Programme expenditure and financing arrangements, as set out in Appendix A to the officer’s report, be approved.

2.   The new schemes, as outlined in paragraph 6.1 of the officer’s report, be noted.

3.   The proposal to undertake further work to finalise the strategy document required to take advantage of the Government’s capital receipts flexibility rules, be approved.

4.   The proposal to defer the repayment of prudential borrowing from capital receipts, including that in respect of the Queens Park Sports Centre and Market Hall refurbishment projects, be approved.

5.   That the proposed changes to the methods used to finance current schemes, be approved.

REASON FOR RECOMMENDATIONS

To update the Council’s General Fund Capital Programme and ensure that it is affordable and deliverable over the medium term.

The Director of Finance and Resources presented a report that outlined the position of the General Fund Capital Programme for 2017/18.  The report detailed the updated expenditure and financing forecasts, based on the progress of current, approved schemes.

It was reported that the asbestos removal work in the Town Hall had been completed to budget, and that the next phase of refurbishment work had commenced. 

Members were informed that steps were being taken to procure contractors to demolish Saltergate Multi-Storey Car Park (MSCP) and build a new MSCP as part of the Northern Gateway Scheme. 

The Peak Resort scheme was on target to spend to budget and time, and the Chesterfield Museum Store had been successfully relocated.  In addition, the external funds acquired to carry out elements of the Waterside scheme had been returned as the proposed work would be financed through other means.

It was highlighted within Section 5 of the officer’s report that the Council’s use of internal borrowing had helped to reduce the additional costs incurred from external borrowing interest rates.  The Council had worked closely with Arlington Close to ensure that the internal borrowing was affordable, prudent and sustainable.

Members were advised that Government legislation dictated that local authorities would only use capital receipts either to repay debt or to finance new capital expenditure.  However, this rule had been relaxed for the period from April 2016 to March 2019, to give local authorities greater flexibility to use capital receipts for revenue expenditure on transformation schemes that would deliver sustainable, ongoing revenue savings.

It was noted that in order to take advantage of the flexibility, the council would need to prepare a strategy document to provide details of projects to be funded in this manner.  This would include the expected impacts in terms of revenue saved or raised. 

* RESOLVED –

That the Cabinet recommends to the full Council that:

1.   The updated General Fund Capital Programme expenditure and financing arrangements, as set out in Appendix A to the officer’s report, be approved.

2.   The new schemes, as outlined in paragraph 6.1 of the officer’s report, be noted.

3.   The proposal to undertake further work to finalise the strategy document required to take advantage of the Government’s capital receipts flexibility rules, be approved.

4.   The proposal to defer the repayment of prudential borrowing from capital receipts, including that in respect of the Queens Park Sports Centre and Market Hall refurbishment projects, be approved.

5.   That the proposed changes to the methods used to finance current schemes, be approved.

REASON FOR DECISION

To update the council’s General Fund Capital Programme and ensure that it is affordable and deliverable over the medium term.