The Interim Chief Officer – Finance, Performance and Change presented a report, the purpose of which, was to:

•           comply with the requirement of the Chartered Institute of Public Finance and Accountancy’s (CIPFA) ‘The Prudential Code for Capital Finance in Local Authorities’ (2017 edition).

•           provide an update of the Capital Programme for the period 1 April to 30 September 2020 (Appendix A to the report);

•           seek approval for a revised capital programme for 2020-21 to 2029-30 (Appendix B);

•           note the projected Prudential and Other Indicators for 2020-21 (Appendix C)

She reminded Members, that on 26 February 2020, Council approved a capital programme covering the period 2020-21 to 2029-30 as part of the Medium Term Financial Strategy (MTFS). The capital programme was last updated and approved by Members on 22 July 2020. This report provided an update on the following areas:

 Capital Programme 2020-21 Quarter 2 update;

 Capital Programme 2020-21 Onwards;

 Prudential and Other Indicators;

 Capital Strategy monitoring

Turning to the Capital Programme, the Interim Chief Officer – Finance, Performance and Change, referred to paragraph 4.1 of the report. This section of the report provided Members with an update on the Council’s

capital programme for 2020-21 since the budget was last approved by Council and incorporates any new schemes and grant approvals. The revised programme for 2020-21 currently totals £53.541 million, of which £27.850 million is met from Bridgend County Borough Council (BCBC) resources, including capital receipts and revenue contributions from earmarked reserves, with the remaining £25.691 million coming from external resources, including General Capital Grant.

Table 1 in this section of the report, showed the capital programme for each

Directorate from the July 2020 (Quarter 1) approved Council position to quarter 2.

Table 2, then summarised the current funding assumptions for the capital

programme for 2020-21. The capital resources are managed to ensure that

maximum financial benefit for the Council is achieved. This may include the

re-alignment of funding to maximise government grants, she explained.

The Interim Chief Officer – Finance, Performance and Change, then referred to Appendix A of the report, which provided details of the individual schemes within the capital programme, showing the budget available in 2020-21 compared to the projected spend.

A number of schemes had already been identified as requiring slippage of

budget to future years (2021-22 and beyond). At quarter 2 the total requested slippage was £13.875 million. Details of these schemes were shown at paragraph 4.4 of the report.

She advised that since the last capital report in July 2020, there have been a number of new externally funded schemes approved and internally funded schemes, which have been incorporated into the capital programme. These were included on page 123/124 of the report, with a Revised Capital Programme included at Appendix B (to the report).

In February 2020, Council approved the Capital Strategy for 2020-21, which

included the Prudential Indicators 2020-21 to 2022-23 together with some local indicators.

Appendix C to the report, detailed the actual indicators for 2019-20, the estimated indicators for 2020-21 set out in the Council’s Capital Strategy and the projected indicators for 2020-21 based on the revised Capital Programme. These showed that the Council is operating in line with the approved limits. 

The Interim Chief Officer – Finance, Performance and Change concluded, by giving a short narrative on the Council’s Capital Monitoring Strategy.

A Member noted from paragraph 4.5 of the report, that £0.5m had been set aside to replace some of the Council’s Fleet, ie Council Wide Vehicles. He asked Officers if they were also considering providing Alternative Energy methods by which to operate some of its vehicles.

The Corporate Director – Communities, advised that BCBC had within the last couple of days, been in consultation with a Japanese company following a directive by Welsh and Central Government for local authorities to consider adopting alternative energy sources not just for heating purposes, but for its transportation also.

Whilst electrically energised vehicles did not suit the topography of the BCB, hydrogen fuelled vehicles were an option for BCBC’s HGV fleet and this would be actively looked at as part of future fleet provision proposals. It was also possible for the local authority to examine electrically charged vehicles for some of its smaller fleet, she added.

The Deputy Leader advised that this was the Capital programme update for the 2^nd quarter of the Year. He pointed out that there was some slippage in respect of certain schemes, as identified in the report. The reasons these schemes had been delayed were beyond the control of the Authority he added, however the commitment was still there for these to be delivered.

He also welcomed the new grants received from Welsh Government towards Highway Improvements and the Active Travel Programme, as well as the financial support received, in order to convert 10 Affordable Homes in Bridgend into Commercial Units.   

RESOLVED:                           That Council:

·                      noted the Council’s capital programme update for 2020-21 for the period to 30 September 2020 (Appendix A to the report);

·                      approved the revised Capital Programme (Appendix B);

·                      noted the projected Prudential and Other Indicators for 2020-21 (Appendix C).