Meeting documents
Cabinet
Tuesday, 15th February, 2011
Capital Strategy 2011/2011 to 2014/2015
That the Cabinet approve:
A. The revised capital programme of £94.9m in 2010/11 and £171.4m for 2011/12 – 2014/15 as set out in Appendix 3, including the changes to capital allocations detailed in Section 4 and the deletions and changes included in Appendix 2;
B. The change in policy, so that the Education budget meets the revenue cost of schools prudential borrowing, paragraph 3.4;
C. In accordance with the Regulations, to approve a Capital Allowance of £1 million for 2011/12 to enable Council to retain in full, capital receipts received from the disposal of Housing Revenue Account (HRA) assets (excluding Right to Buy sales). Furthermore, that the capital receipts from such sales are reserved for expenditure on the Council’s housing stock.
That Members note:
D. The potential for further Capital Funding to the Capital Programme, Section 5.
E. Options to further reduce the revenue cost of the Capital Programme; including review of the Council’s Asset Holding Portfolio to identify further surplus assets for disposal and that a further report will be brought forward identifying assets that can be disposed and setting capital receipt targets, paragraph 9.3.
As per the recommendations above.
SUMMARY
This purpose of this report by the Interim Head of Finance was to set the capital strategy for the four years 2011/12 to 2014/15, based around two over-riding principles:
· It was priority led; and,
· That the revenue costs were affordable.
During the process, there had been Government reductions in funding of £39.7m, and the recommended deletion of £39.7m of low priority schemes, to arrive at a capital programme of £171.4m for 2011-12 to 2014-15. Together with funding changes, the revenue costs of Prudential Borrowing had been reduced from £16.8m to £5.7m.
Peter Timmins - Cabinet
Recommendations:
That the Cabinet approve:
A. The revised capital programme of £94.9m in 2010/11 and £171.4m for 2011/12 – 2014/15 as set out in Appendix 3, including the changes to capital allocations detailed in Section 4 and the deletions and changes included in Appendix 2;
B. The change in policy, so that the Education budget meets the revenue cost of schools prudential borrowing, paragraph 3.4;
C. In accordance with the Regulations, to approve a Capital Allowance of £1 million for 2011/12 to enable Council to retain in full, capital receipts received from the disposal of Housing Revenue Account (HRA) assets (excluding Right to Buy sales). Furthermore, that the capital receipts from such sales are reserved for expenditure on the Council’s housing stock.
That Members note:
D. The potential for further Capital Funding to the Capital Programme, Section 5.
E. Options to further reduce the revenue cost of the Capital Programme; including review of the Council’s Asset Holding Portfolio to identify further surplus assets for disposal and that a further report will be brought forward identifying assets that can be disposed and setting capital receipt targets, paragraph 9.3.
Decisions reached:
As per the recommendations above.
Directorate Officer is Peter Timmins
Tel: 01743 252007
Committee Officer is Penny Chamberlain
Tel: 01743 252729 Fax: 01743 252713
Email: Penny Chamberlain/EXTERNAL/SHROPSHIRE-CC
Attached items/documents:
- 7 Capital Strategy 2011 to 12 and 2014 to 15 Report.pdf
- Estimated download time: 33 secs @ 56k | 113kb
- 7 Appendix 1 Borrowing Calcualtion.pdf
- Estimated download time: 3 secs @ 56k | 10kb
- 7 Appendix 2 Schemes Financed from Capital Receipts and Prudential Borrowing.pdf
- Estimated download time: 7 secs @ 56k | 25kb
- 7 Appendix 3 Capital Programme 2011 to 12 and 2014 to 15.pdf
- Estimated download time: 12 secs @ 56k | 42kb