Issue - meetings

(Finance Portfolio Holder) To consider the attached report.

Mover: Councillor G Mohindra, Finance Portfolio Holder

Councillor G Mohindra submitted a report seeking Capital supplementary funding for the Epping Forest Shopping Park, the surrender of the Glyn Hopkins Ltd lease in Waltham Abbey and the installation of CCTV systems in Council-owned car parks.

Report as first moved ADOPTED

RESOLVED:

(1)        That a Capital supplementary estimate in the sum of £741,000 for the Epping Forest Shopping Park development be approved;

(2)        That a Capital supplementary estimate in the sum of £52,000 for the surrender of a lease by Glyn Hopkins Ltd in Waltham Abbey be approved; and

(3)        That a Capital supplementary estimate in the sum of £20,000 for the installation of CCTV systems in Council-owned car parks be approved.

(Finance Portfolio Holder) To consider the attached report (C-035-2017/18).

(1)        That the latest five-year forecast of capital receipts be noted;

(2)        That the intention to spend all usable capital receipts in their year of receipt, where possible, be approved;

(3)        That external borrowing of an estimated £28,382,000, necessary to support the General Fund Capital Programme, be noted;

(4)        That the following amendments to the Capital Programme be recommended to the Council for approval:

            (a)        a supplementary capital estimate in the sum of £741,000 for the       Epping Forest Shopping Park development;

            (b)        a supplementary capital estimate in the sum of £52,000 for the         surrender of a lease by Glyn Hopkins Ltd in Waltham Abbey; and

            (c)        a supplementary capital estimate in the sum of £20,000 for the         installation of CCTV systems in Council-owned car parks during 2017/18;

(5)        That the following additional amendments to the Capital Programme be approved:

            (a)        an additional allocation in the sum of £161,000 for Grounds Maintenance vehicles in 2018/19;

            (b)        an additional allocation in the sum of £13,000 for Flood Alleviation   schemes in 2018/19;

            (c)        an additional allocation in the sum of £350,000 for further investment           in the superfast broadband network in 2019/20, subject to a further report to   the Cabinet upon completion of the tender process;

(d)        the identified savings in the sum of £308,000 for 2017/18 and in the sum of £24,000 for 2018/19 for General Fund projects;

            (e)        virements in 2017/18 in respect of:

                        (i)         £48,000 within the General Fund car parking allocation to                 upgrade to LED lights from the Lee Valley Car Park and 4G Pay-and-                      Display installation budgets; and

                        (ii)        £15,000 to CCTV systems from Planned Maintenance and              Flood Alleviation Schemes budgets;

            (f)         the identified additional allocations, savings and virements in respect           of the Council’s Housebuilding and Conversion programme and other Housing Revenue Account capital schemes;

            (g)        carry forwards totalling £1,956,000 from 2017/18 to 2018/19 in respect        of the General Fund Capital schemes listed below:

                        (i)         Planned Maintenance                         £583,000;

                        (ii)        General ICT                                        £101,000;

                        (iii)       Hillhouse Development                       £130,000;

                        (iv)       Town Mead Depot                               £130,000;

                        (v)        Car Parking Schemes                         £161,000;

                        (vi)       NWA Vehicle Compound                    £12,000;

                        (vii)      Flood Alleviations Schemes                £19,000;

                        (viii)     CCTV Systems                                   £57,000;

                        (ix)       Housing Estate Parking Schemes      £510,000; and

                        (x)        Parking Review Schemes                   £253,000;

            (h)        carry forwards totalling £5,553,000 from 2017/18 to 2018/19 in respect        of the Housing Revenue Account Capital schemes listed below:

                        (i)         New Housebuilding                             £3,207,000;

                        (ii)        Structural Schemes                             £475,000;

                        (iii)       Housing Estate Parking Schemes      £431,000;

                        (iv)       Oakwood Hill Estate                            £200,000;

                        (v)        Oakwood Hill Depot                            £1,090,000; and

                        (vi)       Front Door Replacements                   £150,000; and

(i)         in respect of Ground Maintenance vehicles within the General Fund, a sum of £10,000 to be brought forward to 2017/18.

The Finance Portfolio Holder presented a report on the Capital Review for the period 2017/18 to 2021/22.

The Portfolio Holder outlined the Council’s Capital Programme for the five year period 2017/18 to 2021/22. It included the forecast capital investment in Council owned assets; estimates of capital loans to be made for private housing initiatives; and projected levels of revenue expenditure funded from capital under statute. The Capital Programme had been prepared by updating the Programme approved in February 2017, amended for any slippage and re-phasing approved in June 2017, as well as new schemes and allocations approved by the Cabinet subsequently.

The Portfolio Holder stated that the allocations included in 2017/18 and 2018/19 represented approved sums for capital schemes which the Council was committed to deliver. Allocations given for the years 2019/20 to 2021/22 represented forecast sums as a guide to future capital investment, and the schemes to which they related would require Cabinet approval before going ahead. The projects already approved within the Capital Programme had been reviewed and Spending Control Officers had reassessed the estimated final costs and the phasing of expenditure profiles for each scheme as part of the Capital Review. Recommendations had been made to make amendments as appropriate.

The Portfolio Holder reported that the Council’s overall programme of capital expenditure was summarised for each Directorate in Appendix 1 of the report and forecasted an investment of £111,663,000 in Council-owned assets over the five year period. Details of individual schemes or groups of projects were shown at Appendix 2 of the report for the General Fund Capital Programme and an analysis of works into specific categories was shown at Appendix 3 of the report for the Housing Revenue Account (HRA) Capital Programme. Appendix 1 also disclosed the Council’s forecast to finance capital loans of £14,803,000 and planned expenditure of £735,000 - which was classified as revenue expenditure but which could be financed from capital resources, over the five year period. Analyses of these figures were given in Appendices 4 and 5 of the report respectively.

The Portfolio Holder informed the Cabinet that Appendix 1 of the report also detailed the proposed sources of funding for the Capital Programme over the five-year period from 2017/18 to 2021/22, based on maximising the funding available to finance each scheme. Estimated external funding from grants and private sources of £1,011,000 had been identified, and it was proposed that capital receipts of an estimated £20,193,000 and direct revenue funding of an estimated £77,614,000 be applied to finance the Capital Programme over the next five years. It was forecast that external borrowing of an estimated £28,382,000 would be necessary to support the Council’s investments in new developments within the General Fund. The estimated level of capital resources available now and in the future were given in Appendix 6 of the report.

The Portfolio Holder concluded that, in summary, the balance of capital receipts was expected to increase from £0 as at 1 April 2017 to £2,069,000 by 31 March 2022, and the  ...  view the full minutes text for item 90