Issue - meetings

Whilst it is a statutory requirement for local authorities to produce an annual Capital Strategy it is also a best practice approach to longer-term strategic planning and investment to ensure the Council’s long-term priorities can be delivered as well as the day-to-day provision of services.

The Capital Strategy (Item 1) brings together the Council’s detailed policies, procedures and plans relating to capital expenditure, capital financing and treasury management activity.  It incorporates the Treasury Management Framework, Prudential Indicators and Asset Investment Strategy. It also gives an overview of how associated risk is managed and the implications for future financial sustainability.

Recommendation

The Executive makes the following recommendations to Council:

1.            That the five-year Capital Strategy for 2023/2028, incorporating the Treasury Management Strategy, Prudential Indicators and Asset Investment Strategy, is approved.

2.            That Full Council delegate authority to the Executive for the financial year 2023/2024, subject to a positive recommendation from the Asset Investment Advisory Board and agreement from the Chief Executive and Strategic Director:

a.     to bid, negotiate and complete on property acquisitions and investments in land and buildings with a total individual cost of up to £10m, subject to the decision fully satisfying all criteria and process requirements set out in this Strategy; and

b.     to determine a funding strategy for the acquisition or investment in line with the Treasury Management Strategy; and

c.     to appoint advisors and undertake appropriate due diligence for each property acquisition and investment proposal as necessary; and

d.     to complete the legal matters and signing of contracts to execute the transactions referred to above.

88.1     The Leader introduced the Capital Strategy, incorporating the Treasury Management Strategy and Asset Management Investment Strategy and commended it to Council for approval. The recommendations were seconded by the Portfolio Holder for Finance, Commercial and Assets, Cllr Merryweather, who went on to present the detail of the Strategy.

88.2     Cllr Merryweather outlined the main elements of the Capital Strategy that governed how the council managed capital investments and expenditure in a prudent, sustainable and resilient manner, and in accordance with regulations and Government lending terms. He drew attention to the recommendation for the renewal of the delegated authority to the Executive, which was considered necessary in order for the Council to participate in the market, where appropriate, on an equal footing with the private sector.

88.3     Finally, Cllr Merryweather thanked the Executive Head of Finance and Finance Officers for their work on developing the Capital Strategy.

88.4     Cllr Mulliner spoke to reiterate comments made by the Overview & Scrutiny Committee, that the Capital Strategy was a difficult document to understand for anyone without a finance background, and work was needed to make it more accessible for councillors and residents of all backgrounds. He looked forward to working with the Portfolio Holder to develop a revised version that could be more easily understood. Cllr Merryweather accepted the criticism of the document and welcomed Cllr Mulliner’s interest in making the content more accessible.

88.5     The Mayor moved the vote, and it was

RESOLVED that

1.         the five-year Capital Strategy for 2023 – 2028, incorporating the Treasury Management Strategy, Prudential Indicators and Asset Investment Strategy, be approved.

2.         authority be delegated to the Executive for the financial year 2023/24, subject to a positive recommendation from the Asset Investment Advisory Board and agreement of the Chief Executive and Strategic Director,

            a)         to bid, negotiate and complete on property acquisitions and investments in land and buildings with a total individual cost of up to £10m, subject to the decision fully satisfying all criteria and process requirements set out in this Strategy; and

            b)         to determine a funding strategy for the acquisition or investment in line with the Treasury Management Strategy; and

            c)         to appoint advisors and undertake appropriate due diligence for each property acquisition and investment proposal as necessary; and

            d)         to complete the legal matters and signing of contracts to executive the transactions referred to above.

Whilst it is a statutory requirement for local authorities to produce an annual Capital Strategy it is also a best practice approach to longer-term strategic planning and investment to ensure the Council’s long-term priorities can be delivered as well as the day-to-day provision of services.

The Capital Strategy (Item 1) brings together the Council’s detailed policies, procedures and plans relating to capital expenditure, capital financing and treasury management activity.  It incorporates the Treasury Management Framework, Prudential Indicators and Asset Investment Strategy. It also gives an overview of how associated risk is managed and the implications for future financial sustainability.

Recommendation

It is recommended that the Executive, after considering comments from the Resources Overview and Scrutiny Committee, makes the following recommendations to Council:

1.            That the five-year Capital Strategy for 2023/2028, incorporating the Treasury Management Strategy, Prudential Indicators and Asset Investment Strategy, is approved.

2.           That Full Council delegate authority to the Executive for the financial year 2023/2024, subject to a positive recommendation from the Asset Investment Advisory Board and agreement from the Chief Executive and Strategic Director:

a.         to bid, negotiate and complete on property acquisitions and investments in land and buildings with a total individual cost of up to £10m, subject to the decision fully satisfying all criteria and process requirements set out in this Strategy; and

b.         to determine a funding strategy for the acquisition or investment in line with the Treasury Management Strategy; and

c.         to appoint advisors and undertake appropriate due diligence for each property acquisition and investment proposal as necessary; and

d.         to complete the legal matters and signing of contracts to execute the transactions referred to above.

The Executive RESOLVED to recommend to Council:

1.         That the five-year Capital Strategy for 2023/2028, incorporating the Treasury Management Strategy, Prudential Indicators and Asset Investment Strategy, is approved.

2.         That Full Council delegate authority to the Executive for the financial year 2023/2024, subject to a positive recommendation from the Asset Investment Advisory Board and agreement from the Joint Chief Executive and Joint Strategic Director:

a.         to bid, negotiate and complete on property acquisitions and investments in land and buildings with a total individual cost of up to £10m, subject to the decision fully satisfying all criteria and process requirements set out in this Strategy; and

b.         to determine a funding strategy for the acquisition or investment in line with the Treasury Management Strategy; and

c.       to appoint advisors and undertake appropriate due diligence for each property acquisition and investment proposal as necessary; and

d.         to complete the legal matters and signing of contracts to execute the transactions referred to above.

Reason: The Capital Strategy is a whole organisation approach to capital investments (expenditure) and overall strategic planning. It has historically been seen as a finance responsibility but should be steered by the leadership of the Council and is a responsibility of all.

[This matter is recommended to Council for decision.]

The Portfolio Holder for Finance, Commercial and Assets, Cllr Mark Merryweather, presented the Capital Strategy for 2023/24 which incorporated a number of interdependent strategies, policies, practices, principles, plans and other statements that set out how the council approached capital investments and expenditure in a prudent, sustainable and resilient manner. He highlighted the key elements of the strategy, and noted that it was proposed to renew the delegated authority to the Executive to enable an efficient and timely response on property investments at the same level of £10m. This limit was considered to be adequate for the time being, but might need to be reviewed in future years.

The Executive RESOLVED to recommend to Council:

1.         That the five-year Capital Strategy for 2023/2028, incorporating the Treasury Management Strategy, Prudential Indicators and Asset Investment Strategy, is approved.

2.         That Full Council delegate authority to the Executive for the financial year 2023/2024, subject to a positive recommendation from the Asset Investment Advisory Board and agreement from the Joint Chief Executive and Joint Strategic Director:

a.         to bid, negotiate and complete on property acquisitions and investments in land and buildings with a total individual cost of up to £10m, subject to the decision fully satisfying all criteria and process requirements set out in this Strategy; and

b.        to determine a funding strategy for the acquisition or investment in line with the Treasury Management Strategy; and

c.              to appoint advisors and undertake appropriate due diligence for each property acquisition and investment proposal as necessary; and

d.        to complete the legal matters and signing of contracts to execute the transactions referred to above.

Reason: The Capital Strategy is a whole organisation approach to capital investments (expenditure) and overall strategic planning. It has historically been seen as a finance responsibility but should be steered by the leadership of the Council and is a responsibility of all.