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 position for 2021-22 as at 30 September 2021 (Appendix A)

 · seek approval for a revised capital programme for 2021-22 to 2030-31 (Appendix B)

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

She explained that the Local Authorities (Capital Finance and Accounting) (Wales) Regulations 2003, as amended, contain detailed provisions for the capital finance and accounting controls, including the rules on the use of capital receipts and what is to be treated as capital expenditure. They modify accounting practice in various ways to prevent adverse impacts on authorities’ revenue resources.

As well as this legislation, the Council manages its Treasury Management and Capital activities in accordance with the associated guidance shown in paragraph 3.2 of the report.

The Interim Chief Officer – Finance, Performance and Change reminded Members that on 24 February 2021, Council approved a capital budget of £62.363 million for 2021-22 as part of a capital programme covering the period 2021-22 to 2030-31. The programme was last updated and approved by Council on 21 July 2021.

This report provided an update on the following:

• Capital Programme monitoring quarter 2 2021-22

• A revised Capital Programme for 2021-22 to 2030-31

• Capital Strategy monitoring

• Prudential and other indicators

This section of the report provided Members with an update on the Council’s

capital programme for 2021-22 since it was last approved by Council and

incorporated any new schemes and grant approvals. The revised programme for 2021-22 currently totals £76.600 million, of which £54.378 million is met from Bridgend County Borough Council (BCBC) resources, including capital receipts and revenue contributions from earmarked reserves, with the remaining £22.222 million coming from external resources, including General Capital Grant.

Table 1 in the report, reflected the capital programme for each Directorate from July 2021 (quarter 1) approved Council position to quarter 2.

Table 2 summarised the current funding assumptions for the capital

programme for 2021-22. The capital resources are managed to ensure that

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

realignment of funding to maximise government grants.

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

budget to future years (2022-23 and beyond). At quarter 2 the total requested slippage is £12.826 million. Details of these were outlined in paragraph 4.4 of the report.

Since the last capital report approved by Council in July 2021, there has been a number of new externally funded schemes approved and internally funded schemes, which have been incorporated into the capital programme, as itemised in paragraph 4.5 of the report. The Interim Chief Officer – Finance, Performance and Change gave a resume of these for the benefit of Members

In February 2021, Council approved the Capital Strategy for 2021-22, which

included the Prudential Indicators 2021-22 to 2023-24, together with some local indicators.

Appendix C to the report, then 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 2021-22, based on the revised Capital Programme. These show that the Council is operating in line with the approved limits.

The Capital Strategy also requires the monitoring of non-treasury management investments and other long-term liabilities. The Council does have an existing investment portfolio which is 100% based within the County Borough and primarily the office and industrial sectors. The income streams are generally 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 £5.090 million as at 31 March 2021, confirmed the Interim Chief Officer – Finance, Performance and Change.

The Council also had a number of other long-term liabilities which are included within the Capital Strategy, as specified in paragraph 4.12 of the report.

RESOLVED:                          That Council:

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

· approved the revised Capital Programme (Appendix B)

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