Report by Director of Resources

The Director of Resources submitted a report to seek approval for the Capital Strategy in accordance with the Chartered Institute of Public Finance and Accountancy’ (CIPFA) revised Prudential Code for Capital Finance in Local Authorities 2017.  The draft Capital Strategy 2019 was appended to report for consideration.  The Capital Strategy provided a high level overview of how capital expenditure, capital financing and treasury management activity would contribute to the provision of services; along with an overview of how associated risk was managed and the implications for future financial sustainability.

The draft Strategy was informed by the Council’s priorities and was complementary to other key strategy documents notably the Corporate Plan (see Minute 19 above), Medium Term Financial Plan, Treasury Management Strategy, Asset Management Strategy and Property Investment Strategy. 

The Capital Strategy set out revised terms of reference and attendee lists for historic officer working groups, including the Strategic Asset Management Board (SAMB), in order to give the Board a wider and more strategic focus.  The Board would direct and be supported by a number of project groups, including Land and Property.  The Strategy included a prioritisation matrix at Appendix B, which described the scoring guidance for new capital schemes.  The proposed Action Plan attached at Appendix F to the Strategy identified four areas where work was required for the Council to become fully compliant with the CIPFA code requirements, as follows:

·       Developing knowledge of the existing asset base;

·       Identifying what assets were needed in the future;

·       Developing and implementing new systems and processes, which enable the transition to become fully compliant with the code requirements;

·       Reviewing current capacity within the organisation.

The following motion was moved by Councillor Brock and seconded by Councillor Page and CARRIED:

Resolved –

(1)           That the Capital Strategy, as attached at Appendix 1 to the report, be approved;

(2)           That the proposed Action Plan, which was attached to the Capital Strategy at Appendix F, together with the associated financial implications be noted.