Issue - meetings

RECOMMENDATIONS:

1.           The Capital Investment Strategy be approved including:

(i)      the Capital Programme and Capital Programme Financing (Appendices A and B to report CAB3443);

(ii)    the Minimum Revenue Provision (MRP) Policy Statement (Appendix E of the report);

(iii)   the Flexible Use of Capital Receipts Strategy (Appendix G of the report); and

(iv)   the prudential indicators detailed in the report and Appendix F of the report.

Councillor Cutler (Cabinet Member for Finance and Performance) moved that the recommended minute of Cabinet be approved and adopted (seconded by Councillor Tod, Leader and Cabinet Member for Asset Management).

Council proceeded to ask questions and then debate the matters in the recommended minute and report.

RESOLVED:

That the recommended minute of Cabinet held 8 February 2024 (as follows) be approved and adopted:

1.      The Capital Investment Strategy be approved including:

(i)      the Capital Programme and Capital Programme Financing (Appendices A and B to report CAB3443);

(ii)     the Minimum Revenue Provision (MRP) Policy Statement (Appendix E of the report);

(iii)    the Flexible Use of Capital Receipts Strategy (Appendix G of the report); and

(iv)   the prudential indicators detailed in the report and Appendix F of the report.

That Cabinet recommends to Council*:

1.       The Capital Investment Strategy be approved including:

(i)    the Capital Programme and Capital Programme Financing (Appendices A and B to report CAB3443);

(ii)   the Minimum Revenue Provision (MRP) Policy Statement (Appendix E of the report);

(iii)the Flexible Use of Capital Receipts Strategy (Appendix G of the report); and

(iv)the prudential indicators detailed in the report and Appendix F of the report.

That Cabinet:

2.       Subject to Council approval of the capital programme, approves the following capital expenditure in 2024/25:

(i)      IMT equipment and software (£30,000) as detailed in paragraph 11.8.7 of the report;

(ii)     £191,000 (subject to successful UKSPF funding bid) on Friarsgate Medical Centre interim open space (paragraph 11.2.4 of the report);

(iii)    Up to £200,000 for essential repairs works to the Weirs (paragraph 11.2.4 of the report)

(iv)   £40,000 in respect of fees for the replacement of North Walls pavilion (paragraph 11.2.4 of the report); and

(v)     £485,000 for refurbishment works to the Guildhall to improve fire safety (paragraph 11.2.4 of the report).

3.       Notes the requirement to ensure Members have the right knowledge and skills to undertake their governance role and that the ongoing support and training offered to members is continued and enhanced as required.

*NB recommendations to Council are not subject to call-in.

Cabinet agreed to the following for the reasons set out above and outlined in the report.

RECOMMENDED (TO COUNCIL):

1.           The Capital Investment Strategy be approved including:

(i)      the Capital Programme and Capital Programme Financing (Appendices A and B to report CAB3443);

(ii)    the Minimum Revenue Provision (MRP) Policy Statement (Appendix E of the report);

(iii)   the Flexible Use of Capital Receipts Strategy (Appendix G of the report); and

(iv)   the prudential indicators detailed in the report and Appendix F of the report.

RESOLVED:

2.                  That subject to Council approval of the capital programme, approves the following capital expenditure in 2024/25:

(i)      IMT equipment and software (£30,000) as detailed in paragraph 11.8.7 of the report;

(ii)     £191,000 (subject to successful UKSPF funding bid) on Friarsgate Medical Centre interim open space (paragraph 11.2.4 of the report);

(iii)    Up to £200,000 for essential repairs works to the Weirs (paragraph 11.2.4 of the report)

(iv)   £40,000 in respect of fees for the replacement of North Walls pavilion (paragraph 11.2.4 of the report); and

(v)     £485,000 for refurbishment works to the Guildhall to improve fire safety (paragraph 11.2.4 of the report).

3.                  That the requirement to ensure members have the right knowledge and skills to undertake their governance role be noted and that the ongoing support and training offered to members is continued and enhanced as required.

RECOMMENDATION:

It is recommended that scrutiny committee comment on the proposals within the attached cabinet report, ref CAB3443 which is to be considered by cabinet at its meeting on the 8 February 2024.

Councillor Cutler, Deputy Leader and Cabinet Member for Finance and Performance introduced the report, ref CAB3443 which set out proposals for the Capital Investment Strategy, (available here).  The introduction included the following points.

1.    The report outlined the Council's capital spending programme, emphasising the principles that guided these investments to achieve the desired outcomes as set out in the Council plan.

2.    It presented a detailed overview of the overall programme for the next ten years, including how it was financed, governance structures, risk appetite, and its impact on the Council's medium-term financial strategy.

3.    The total capital programme was projected at £444.7 million over the next decade, with £39 million from the General Fund and £405.7 million from the Housing Revenue Account (HRA).

4.    Appendix 2 categorised the Capital Programme by project, distinguishing between those approved for expenditure and those subject to further appraisal.

5.    The strategy document included key projects, outlined the approval process, and detailed project programme management protocols.

6.    It incorporated several prudential indicators as mandated by the CIPFA Prudential Code and the Department for Levelling Up, Housing, and Community Statutory Investment Advice.

In addition, Liz Keys, Chief Finance Officer, advised the committee of the following:

1.    That the Prudential Code requires the S151 officer to consider the affordability and risk associated with the capital programme. 

2.    That the council’s 10-year programme is ambitious; however, Winchester has a long history of successfully managing its capital assets to support its objectives while minimising the risks. 

3.    As a result, she considered the proposed programme to be affordable, sustainable, and prudent.

The committee was asked to comment on the proposals within the attached cabinet report, ref CAB3443 which is to be considered by the cabinet at its meeting on 8 February 2024.

The committee proceeded to ask questions and debate the report. In summary, the following matters were raised.

1.    Clarification regarding the £200,000 allocated for the demolition of the former Bar End Depot, particularly in relation to potential ground contamination and the adequacy of resident consultations.

2.    Further information concerning the long-term use of the Guildhall in light of significant investments in fire safety and insulation.

3.    Understanding the likelihood of the demolition of the River Park Leisure Centre in 2024/25.

4.    Regarding the budgeting of £610,000 relating to 59 Colebrook Street, and the sharing of these costs with others.

These points were responded to by Laura Taylor (Chief Executive) and, Liz Keys, (Chief Financial Officer) accordingly.

RESOLVED

1.    That the report be noted.

2.    That cabinet considers all the committee’s comments raised during the discussion of the item.