Agenda item

The report on the end of August review (position as at 31 August 2021) of the capital programme was accepted.

The revised financing as presented in part 4 of the report was approved, as follows:

·         use of various sources totalling £25,837,000 to fund actual slippages from 2020/21,

·         an increase of £61,000 in the use of borrowing,

·         an increase of £9,959,000 in the use of grants and contributions,

·         an increase of £69,000 in the use of capital receipts,

·         an increase of £1,482,000 in the use of revenue contributions,

·         an increase of £21,000 in the use of the capital reserve, and

·         an increase of £807,000 in the use of renewal and other reserves.

The report was presented by Cllr Ioan Thomas

RESOLVED

The report on the end of August review (position as at 31 August 2021) of the capital programme was accepted.

The revised financing as presented in part 4 of the report was approved, as follows:

·         use of various sources totalling £25,837,000 to fund actual slippages from 2020/21,

·         an increase of £61,000 in the use of borrowing,

·         an increase of £9,959,000 in the use of grants and contributions,

·         a increase of £69,000 in the use of capital receipts,

·         an increase of £1,482,000 in the use of revenue contributions,

·         an increase of £21,000 in the use of the capital reserve, and

·         an increase of £807,000 in the use of renewal and other reserves.

DISCUSSION

The report was submitted noting that it presented the revised capital programme and sought approval for the relevant financing sources. It was explained that there was an analysis in the report of the capital programme of £124.0 million for the next three years. 

It was explained that the Council had firm schemes in place to invest approximately £71.6 million this year, with £26.1 million financed by attracting specific grants.  It was stated that the impact of the Covid crisis can still be seen on the capital programme, with only 16% of the budget having been spent by the end of August, compared to 13% for the same period last year and 19% two years ago.  

It was noted that £9.1m of proposed expenditure had been re-profiled from 2021/22 to 2022/23 and 2023/24 and the main schemes were highlighted which included 21st Century Schools, Schemes to Stimulate the Economy and Industrial Units and the Council's Carbon Management Schemes.  Attention was drawn to the list of additional grants the Council had managed to attract since the previous review, which included grants from the Local Transport Fund, Targeted Regeneration Investment for the 'Nyth' Scheme in Bangor and Welsh Government Grants for Child Care. 

Observations arising from the discussion

¾     It was noted that the report highlighted exciting schemes such as the Circular Economy that had several grants.  Pride was expressed in the Nyth scheme that had received grants and would offer exciting and creative opportunities in Bangor.

¾     Finance for the industrial units was welcomed as there was a great deal of demand for the units. 

¾     Concern was highlighted regarding the costs of building materials together with skills in the construction field.  It was asked if there was any concern regarding spending the investments as a result of these concerns.  It was noted that tenders received were much higher, however, it was explained that the forecasts indicated that these were temporary and some fields were holding back on schemes and prioritised as required.  

¾     It was stated that the Council should be congratulated for the capital expenditure to establish assets for the Council.  It was emphasised that the schemes in the Housing Action Plans would be a huge expenditure over the next three years.