Agenda item

Joint report of the Chief Fire Officer and the Treasurer (DSFRA/16/2) attached.

(NOTE:  this item was considered in conjunction with the item at Minute DSFRA/48(a) above – 2016-17 Revenue Budget and Council Tax Levels).

The Authority considered a joint report of the Chief Fire Officer and Treasurer (DSFRA/16/2) on the proposed Capital Programme for 2016-17 to 2018-19 with associated Prudential Indicators.

The report outlined the difficulties in meeting the full capital expenditure requirement for the Authority, given the number of fire stations, fire appliances and associated equipment required to be maintained and eventually replaced. 

All aspects of the capital requirement had been considered and the programme constructed on the principle that debt charges emanating from external borrowing would be kept within the 5% Prudential Indicator limit (debt charges as a percentage of the Revenue Budget) set by the Authority. 

The Authority has been advised over recent years of the difficulties, against a reducing revenue budget, in maintaining a programme affordable within the 5% Prudential Indicator and had indicated support for the Treasurer’s recommendation that alternative sources of funding other than external borrowing should be pursued to support future capital investment.  Consequently, the Authority had – in setting the revenue budget and associated Council Tax levels for 2016-17 – approved a total revenue contribution towards capital of £3.7m, with £3.048m to be utilised in 2016-17 and £0.625m transferred to the Earmarked Reserve for future capital spending.

An Estates Development Review was currently in progress which would ultimately inform an alternative strategy to provide a fit-for-purpose estate.  Consequently, no major estates were scheduled to commence in 2016-17 albeit that the programme contained moderate amounts to fund minor improvements and structural maintenance.   

The Authority was also committed to providing a “tiered response”, operationally, matching resource to risk.  Consequently, the fleet replacement aspect of the proposed programme provided for continued funding for the Light Rescue Pump programme together with support for, pending the outcome of pilot schemes, the introduction of Rapid Intervention Vehicles.

To inform longer-term planning, the Prudential Indicators associated with the Capital Programme had been profiled for a further three years beyond 2018-19, based upon indicative capital programme levels for the years 2019-20 to 2021-22.

The Resources Committee had initially considered the draft Capital Programme 2016-17 to 2018-19 at its meeting on 10 February 2016 when it had resolved (Minute RC/12 refers) to recommend the Authority:

(a).      To approve a minimum revenue contribution of £2.407m from the 2016-17 revenue budget towards financing of the 2016-17 to 2018-19 capital programme;

(b).      To approve the draft Capital Programme 2016-17 to 2018-19 and associated Prudential Indicators as detailed [in report RC/16/2] and summarised at Appendices A and B respectively [of that report]; and

(c).      To note the forecasting impact of the proposed Capital Programme (from 2019-20 onwards) on the 5% debt ratio Prudential Indicators as indicated in [report RC/16/2].

The Resources Committee had also resolved to recommend that the Authority approve a Council Tax increase of 1.99% and that the additional £0.405m net Section 31 Grant funding made available by the government should further supplement the contribution to capital (Minute RC/13 refers). 

The net effect of this was to provide for a total revenue contribution towards capital of £3.7m referred to earlier.

Following a debate on the issue, Councillor Greenslade MOVED, with Councillor Knight seconding, that the recommendations of the Resources Committee be approved whereupon it was

RESOLVED

(i)         that, in accordance with the recommendations made by the Resources Committee at its meeting on 10 February 2016 (Minute RC/12 refers):

(A).     the draft Capital Programme 2016-17to 2018-19  as detailed inreport DSFRA/16/2 and summarised at Appendix B to these Minutes be approved;

(B).     the associated Prudential Indicators as set out in the report and summarised at Appendix C to these Minutes be approved; and

(C).     that a revenue contribution of £3.7m be made from the 2016-17 revenue budget towards financing of the 2016-17 to 2018-19 capital programme;

(ii)        that the forecast impact of the proposed Capital Programme (from 2019-20 onwards) on the 5% debt ratio Prudential Indicator, as indicated in this report, be noted.

(SEE ALSO MINUTES DSFRA/47(d) and DSFRA/48(a) ABOVE AND MINUTE DSFRA/48(c) BELOW).