To consider the recommendations of the Mayor on the Capital Plan Budget proposals for 2016/2017 to 2019/2020.  Included in this report are the following documents:

·         Capital Plan Update – Quarter 3 2015/2016

·         Capital Strategy

·         Asset Management Plan

Further to the meeting of the Council held on 3 February 2016, Members considered the recommendations of the Mayor in relation to the Capital Plan Budget 2016/2017 to 2019/2020, 2016/17 Capital Strategy and Corporate Asset Management Plan 2015 to 2019.  The report also set out the quarter 3 2015/2016 Capital Plan monitoring information.

In accordance with legislation, the Chairman advised recorded votes would be taken on the objections.

It was proposed by the Mayor and seconded by Councillor Mills:

(i)        that the latest position for the Council’s Capital expenditure and funding for 2015/16 be noted;

(ii)       that 2016/17 Capital Strategy (set out at Appendix 1 of the submitted report) be approved;

(iii)      that prudential borrowing of £10 million for an Investment Fund to enable acquisition of properties for investment purposes to be funded from future rental income be approved and that purchases within the Fund to besubject to specific criteria:

-       Rate of Return expected to exceed 6% per annum net of costs

-       Property assessed as an asset life in excess of 50 years (or repayment period)

-       Tenants assessed as reasonable credit quality and pre lets agreed if possible

-       Independent valuation of asset to support purchase price

-       Any UK property to be considered subject to no more than 50% in any county area.

-       Any sale proceeds of assets purchased to be reinvested in fund.

and that the allocation of the Fund, if the criteria is met, be agreed by Executive Director  of Operations and Finance in consultation with the Chief Finance Officer and the Mayor and Group Leaders with the Overview and Scrutiny Co-ordinator being notified in advance of any decisions;

(iv)      that prudential borrowing of £3 million for essential capital repair works be approved with the cost of borrowing to be included in future year revenue budgets and that the allocation of the budget be agreed by the Executive Head – Business Services in consultation with the Chief Finance Officer and the Mayor and Group Leaders with the Overview and Scrutiny Co-ordinator being notified in advance of any decisions;

(v)       that prudential borrowing of £0.350 million to upgrade and update the Council’s CCTV equipment be approved with the cost of borrowing to be included in future year revenue budgets offset by any future external contributions and any resulting revenue savings;

(vi)      that prudential borrowing of £1.0 million for an IT Investment Fund for 2016/17 to 2019/20 be approved with the cost of borrowing to be included in future year revenue budgets and that the allocation of the Fund be agreed by Executive Director of Operations and Finance consultation with the Chief Finance Officer, the Executive Head – Customer Services and the Executive Lead for Customer Services;

(vii)     that the reallocation of £0.5m within the existing schools capital allocation to provide two mobile accommodation buildings at Paignton Community Sports Academy be approved to meet an immediate need for pupil places;

(viii)    that the allocation of £0.350m to improvements at The  ...  view the full minutes text for item 133

To consider the recommendations of the Mayor on the Capital Plan Budget proposals for 2016/2017 to 2019/2020.  Included in this report are the following documents:

·         Capital Plan Update – Quarter 3 2015/2016

·         Capital Strategy

·         Asset Management Plan

(Note: This item will be deferred for consideration at an adjourned meeting of the Council to be held on Thursday, 11 February 2016.)

At the invitation of the Chairman, the Mayor outlined his capital plan budget proposals for 2016/2017 to 2019/2020.

A copy of the record of decision setting out the recommendations of the Mayor in respect of the capital plan budget proposals is attached to these Minutes.

The Chairman advised that in accordance with Standing Orders F2.13 and F3.12 in relation to the Budget and Policy Framework this item was referred to an adjourned meeting of Council to be held on 11 February 2016 to enable full consideration to be given to the implications of the proposals set out in the report circulated on 3 February 2016.