The attached paper looks at options around funding the Capital Programme both for 2013-14 and in future years that will minimise the need to borrow any funds.
This, in turn, will reduce the amount of the PCC budget, which has to be set aside to pay interest. It also reduces the amount needed to be set aside to meet the minimum revenue provision of the organisation.
The PCC is asked to:
- Contribute the final underspend from the PCC’s budget and over-recovery of income in 2013-14 to a Capital Earmarked Reserve. This is currently expected to total about £585K
- Contribute the £421K underspend from 2012-13 to the Capital Earmarked Reserve. This underspend currently sits in the General Fund
- Contribute £1,126K from the risk earmarked reserved to the Capital Earmarked Reserve
- Approve a change of policy on the sale of capital assets. This will mean that from 1 April 2014, all proceeds from the sale of capital items are accounted as capital receipts. Therefore, these funds will be available to fund capital purchases in the future
- Approve the £200K of recurring savings from the MRP budget as a contribution to the Capital Programme on a recurring basis.
- Add the £200K resulting from a larger than expected increase in the number of Band D properties in Cleveland in 2014-15 to capital funding. Agree that this becomes a permanent contribution, which increases in line with future precept increases
- Add the £350K Council Tax collection surplus from 2013-14 to capital funding. This surplus will be received in 2014-15.