The 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 details of the capital outturn for 2021-22; provided an update of the capital position for 2022-23 as at 30 June 2022; sought agreement from Cabinet to present a report to Council for approval a revised capital programme for 2022-23 to 2031-32 and to note the projected Prudential and Other Indicators for 2021-22 and 2022-23.

The Chief Officer Finance, Performance and Change reported that Council on 24 February 2021, approved a capital budget of £62.363m for 2021-22 to 2030-31.  New schemes had been approved for the 2022-23 capital programme by Council in June 2022.  The capital programme for 2021-22 was updated and approved by Council on 23 February 2022 approving a programme of £50.082m of which £28.800m is met from the Council’s resources, including capital receipts, revenue contributions from earmarked reserves and borrowing, with the remaining £21.282m coming from external resources.  She informed Cabinet of amendments to the capital programme, with new approvals of £2.306m as a result of a new grant schemes from the Welsh Government, which include £1.162m for Free School Meals Capital, £0.250m Transforming Towns for Maesteg Town Hall, £0.159m Transforming Towns for Urban Centre Property Enhancement and £0.163m Integrated Care Funding (ICF) for the Children’s Residential Hub.  There had also been a £0.441m revenue contribution to capital to fund the installation of upgraded ICT infrastructure in schools.  Funding of £0.046m had been brought back from 2022-23 to reflect updated spend profiles.  The Council had been awarded £2.880m grant from the Welsh Government towards Band B Land Purchase which, whilst not changing the total cost of the scheme, the funding profile had been changed to reflect the additional funding.  This brought the revised budget for 2021-22 to £52.434m.    

The Chief Officer Finance, Performance and Change reported that as at 31 March 2022 total expenditure was £29.741m which, after slippage of £21.252m into 2022-23 and adjustments to grant funded schemes of £1.395m, resulted in an under spend of £0.046m, which would be returned to Council funding.  A number of schemes had commenced but not been completed or had been moved into 2022-23.  The main schemes being:

·         £2.260m Llynfi Loan

·         £2.092m School Capital Maintenance

·         £2.028m Land Purchase Band B

·         £1.677m of funding for minor capital works

·         £0.998m Maesteg Town Hall

·         £0.797m Welsh Medium Childcare provision at Ogmore

·         £0.553m Economic Stimulus

·         £0.484m Welsh Medium Childcare provision at Bettws

The Chief Officer Finance, Performance and Change highlighted the position by each Directorate at Quarter 1 and summarised the current funding assumptions for the capital programme for 2022-23.  Capital resources were managed to ensure that maximum financial benefit for the Council was achieved, which may include the realignment of funding to maximise government grants.

The Chief Officer Finance, Performance and Change reported on amendments to the capital programme for 2022-23 as follows:

• Levelling Up Fund - £4.500m
• Sustainable Communities for Learning Band B - £15.461m
• Active Travel Fund - £4.242m
• Community Focused Schools - £0.930m
• Homelessness and Housing £0.530m
• 20mph Default Speed - £0.580m
• Coychurch Crematorium Works- £0.096m
• Brilliant Basics - £0.065m
• Fleet - £0.042m

The Chief Officer Finance, Performance and Change also reported on the

monitoring of Prudential and other indicators for 2022-23 to 2024-25  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 was required to establish procedures to monitor both performance all forward-looking prudential indicators and the requirement specified.  She detailed the actual indicators for 2021-22, the estimated indicators for 2022-23 set out in the Council’s Capital Strategy and the projected indicators for 2022-23 based on the revised Capital Programme, which shows the Council is operating in line with the approved limits.

The Chief Officer Finance, Performance and Change reported that the Capital Strategy also required 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 £5.585m at 31 March 2022.  She informed Council that it has a number of Other Long-Term Liabilities included within the Capital Strategy.

The Leader was pleased see the allocation of further funding by the Welsh Government for active travel and towards the introduction of the 20mph Default Speed.  The Cabinet Member Communities highlighted the good work being done with the investment of £10m in the capital programme on highways projects which would be reflected in the revised Corporate Plan.

The Deputy Leader and Cabinet Member Social Services and Early Help requested clarification of the scheme whereby the Council will provide funding to Valley to Coast (V2C) to support a refurbishment programme.  The Chief Officer Finance, Performance and Change clarified that the scheme would enable properties to be brought up to standard to avoid them becoming void.  The nature of the works carried out to each property by V2C would vary according to what was required, properties would also be decarbonised.  Contracts would be allocated from V2Cs framework.

The Leader welcomed the commitment in the capital programme for the redevelopment of the Grand Pavilion, the replacement of Penprysg Railway Bridge and the scheme to have net zero carbon schools.  He asked for an update on progress on the Llynfi Loan.  The Corporate Director Communities informed Cabinet that significant progress had been made on the former washeries site Maesteg in order that it be developed as a credible site for social housing with a registered social landlord.     

RESOLVED:            That Cabinet:

· noted the capital outturn for 2021-22 (Appendix A)

· noted the Council’s Capital Programme 2022-23 Quarter 1 update to 30 June 2022 (Appendix B)

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

· noted the projected Prudential and Other Indicators for 2021-22 and 2022-23 (Appendix D).