Decision details

That the Capital Programme 2015/16 as attached to the officer’s report be approved and until the Treasury and Capital Management Group is established that all business cases be agreed by the relevant Executive Councillor prior to submission to the Finance Governance Board.

All capital funding had an effect on the revenue budget which was reflected in the budget as the Minimum Revenue Provision (MRP) and the cost of internal borrowing. Therefore, it was important that the Council in approving any capital had regard to both MRP and the cost of internal borrowing.  It was considered that the Capital Programme was affordable for 2015/16 and supported the Council’s Corporate Plan.

All Capital Projects were assessed under the new Capital Programme scoring mechanism.  Bids that did not include sufficient information or were generic and did not refer to a specific scheme or item were returned to the relevant Head of Service for reconsideration.  Although other bids were considered a high priority, based on the evidence presented were reduced in order to provide headroom in the programme for priority in-year bids and still remain within the affordability envelope of the Minimum Revenue Provision.

The Capital Programme 2015/2016 totals £9.637m of which £4.637m relates to capital expenditure, the remaining £5.0m relates to a potential loan to a Housing Association.

As the Council will be borrowing internally there is a consequential cash-flow estimated at £9,000.