Agenda item

The Executive Director Resources and Support Services introduced the Capital Strategy 2015 to 2019.

Following consideration by Cabinet on the 14^th January 2015, the Strategy would be submitted to Council on the 25^th February 2015 for final approval.

Two key reports had been submitted to Cabinet over the last twelve months.  The first report went to Cabinet on the 5^th February 2014 called Newcastle Capital Investment Programme which set out the investment needed over the period spanning 2015/2016 to 2018/2019 in order to replace or maintain operational assets so that services could continue to be provided in accordance with the corporate priorities and to ensure the safety and comfort of staff and customers to comply with statutory provisions.

The second report called Funding the Council’s Capital Investment Programme went to Cabinet on the 15^th October 2014 which set out options for funding the capital investment.  Accordingly Cabinet resolved: “That Cabinet agrees with the principle that the Council, as first resort, will seek to fund its future known capital programme needs through the annual asset management planning process by the identification of land or property in its ownership that is capable of, and appropriate for, disposal”.

The following concerns/questions were raised by Members and answers provided by the Executive Director, Resources and Support Services and the Executive Director, Regeneration and Development Services:-

1.   Clarification was sought on the following points:-

·       Why had this amount of expenditure been incurred on warm zone empty homes?

·       Paragraph 12.2 stated “The following charts illustrate the scale of expenditure which the Council may need to fund over the next few years ….” but in paragraph 12.3 it stated “In addition to the essential works outlined in paragraph 12.2, there are significant amounts of expenditure which need to be incurred”.

·       Paragraph 12.5.  “Work is ongoing to compile a basic programme containing those projects which it can be foreseen will be necessary to ensure service delivery …”.  This inferred a basic programme would be assembled.

The Executive Director, Resources and Support Services advised that the basic programme would be submitted to Finance, Resources and Partnership Scrutiny Committee in January 2015 which would tidy essential wording.  There was a need to have the Strategy to deal with the investment.

The Executive Director, Regeneration and Development Services explained that across the whole of the organisation Service Managers had been asked to forecast their capital expenditure programme over the next five years and to ensure limited available funds were delivered to the right premises.

The Housing Programme had specific reference to the housing capital investment and enabled Officers to work with property owners to bring them up to a satisfactory condition for occupation.  Any Members who had specific questions were invited to meet with Officers independently.

2.   It was asked for an extra section to be included into the Strategy identifying the seven sites, as potentially surplus and suitable for disposal, in order for the Council to fund its capital programme ambitions.

3.   It was also asked how did the new homes bonus operate?

The Executive Director, Resources and Support Services advised that the new homes bonus was split between revenue and capital budgets and would clarify the exact figure.

RESOLVED:-

(a)          That the Executive Director, Resources and Support Services provide clarification on the exact figures relating to the revenue and capital budgets for the new homes bonus.