The Interim Chief Officer Finance, Performance and Change presented a report to comply with the requirement of the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Prudential Code for Capital Finance in Local Authorities; provided an update of the capital position for 2021-22 as at 30 September 2021; sought agreement to present a report to Council for approval a revised capital programme for 2021-22 to 2030-31 and to note the projected Prudential and Other Indicators for 2021-22.

The Interim Chief Officer Finance, Performance and Change reported on an update on the Council’s capital programme for 2021-22 since the budget was last approved by Council which incorporated any new schemes and grant approvals.  The revised programme for 2021-22 currently totalled  £76.600m, of which £54.378m is met from the Council’s resources,

including capital receipts, revenue contributions from earmarked reserves and borrowing, with the remaining £22.222m coming from external resources, including General Capital Grant.  The Interim Chief Officer Finance, Performance and Change highlighted the position by each Directorate.  She summarised the current funding assumptions for the capital programme for 2020-21 and that capital resources are managed to ensure that maximum financial benefit for the Council is achieved, which may include the realignment of funding to maximise government grants. 

The Interim Chief Officer Finance, Performance and Change provided detail on the schemes identified as requiring slippage of budget to future years, which total £12.826m.  She stated that a number of new externally funded schemes approved and internally funded schemes, had been incorporated into the capital programme, which included: 

• Active Travel Fund
• Bridgend College Relocation
• Abercerdin Primary School Community Hub
• Brynteg Comprehensive School Multi Use Sports Pitch
• Accessibility & Safety Road Improvements
• Minor Works
• Health and Wellbeing Village
• Maesteg Town Hall – South Annex Roof; Ground Contamination and Gantries
• CCTV WiFi Project

The Interim Chief Officer Finance, Performance and Change also reported on the monitoring of Prudential and other indicators for 2021-22 to 2023-24 together with some local indicators.  The Capital Strategy is intended to give an overview of how capital expenditure, capital financing and treasury management activity contribute to the provision of services along with an overview of how associated risk is managed and the implications for future sustainability.  A number of prudential indicators were included, and approved by Council.  In line with the requirements of the Prudential Code, the Chief Finance Officer is required to establish procedures to monitor both performance against all forward-looking prudential indicators and the requirement specified.  She detailed the actual indicators for 2020-21, the estimated indicators for 2021-22 set out in the Council’s Capital Strategy and the projected indicators for 201-22 based on the revised Capital Programme, which showed that the Council is operating in line with the approved limits.

The Interim Chief Officer Finance, Performance and Change reported that the Capital Strategy also requires the monitoring of non-treasury management investments and other long term liabilities.  She stated that the Council does have an existing investment portfolio which is 100% based within the County Borough and primarily the office and industrial sectors.  Income streams are spread between the single and multi-let office investments on Bridgend Science Park, the multi-let industrial estates and the freehold ground rent investments.  The total value of Investment Properties was £5.090m at 31 March 2021.  She informed Council that it has a number of Other Long Term Liabilities included within the Capital Strategy.

The Deputy Leader in commending the update to the capital programme stated that the programme covered all aspects of the Council’s services and that he was enthused about the CCTV WiFi Project, which will help to create a vibrant digital economy.  The Cabinet Member Communities was pleased to see funding from accessibility and safety road improvements for safety and accessibility enhancements to be made from Broadlands to Newbridge Fields.  The Leader was also pleased to funding in the capital programme to create a community focused at Abercerdin Primary School and a replacement multi use sports pitch to include floodlights at Brynteg Comprehensive school.

RESOLVED:             That Cabinet:

·      noted the Council’s Capital Programme 2021-22 Quarter 2 update to 30 September 2021 (Appendix A)

·      agreed that the revised Capital Programme (Appendix B) be submitted to Council for approval

·           noted the projected Prudential and Other Indicators for 2021-22 (Appendix C).