Purpose

The report sets the capital budget which will
be presented as part of the budget for 2025-26. As capital projects
can extend across financial years, the budgets provided will run up
to 2030.

Content

Resolved –
 
That Council be recommended: 
 
(1)       To
approve the Capital Strategy (including Prudential Indicators) as
  set out at Section A to Executive
Document “AZ”.

 
(2)       To
approve the capital expenditure for the General Fund and HRA
      as set out in
Appendix D to Executive Document “AZ” for 2025-26
       to
2029-30 subject to:
 

§ 
all future schemes being included in the Council
approved Capital Programme;

§ 
all new schemes, including third party funded,
only commencing with a full business case approved via PAG, CMT and
the Executive and subject to being in the Capital
Programme;

§ 
authority being given to the Director of Finance
to allow specific exceptions to the approval process when in his
opinion it is in the Council's interest. The Director of Finance
will keep a record of these exceptions and report to Executive;

§ 
a further review of the capital programme and a
report back to Executive; and

§ 
an update on the capital receipts potential (to
include an update on the asset disposal strategy including
accommodation and related assets strategy).

 
(3)      
Approve the inclusion of the new capital requirements for 2025-26
     onwards as detailed
in Appendix D to Executive Document “AZ” for inclusion
in the programme and subject to the same as above.

 
(4)       To approve that all
projects follow the approved business case           
governance process as set out in section A5 of Executive
         Document
“AZ”. Commitments against reserve schemes and
      contingencies
can only be made after a business case has been            
assessed by Project Appraisal Group, CMT and approved by
   
Executive.

 
(5)      
Specific approval be given for the following schemes previously
         approved
by Executive to commence following a detailed review by
    Project Appraisal
Group:
 

§ 
The 2025-26 Property Programme has a proposed
total cost of £2m and this will be funded by £2m
allocated in Reserve Schemes.

§ 
Stockbridge Depot Retaining Wall - £0.16m
for structural repairs to a  section of a retaining wall. This scheme is
funded from the general contingency budget.

§ 
Supeconnected Cities –
£0.22m for two projects to implement public Wi-Fi along the
Keighley Worth Valley Railway in the Worth Valley to address poor
mobile coverage and additional Wi-Fi in the City Centre to support
City of Culture events. These schemes are funded by grant from WYCA
and are linked to scheme CS0266 already in the CIP.
 
(6)       To
approve that no financing sources, unless stipulated in
       
regulations or necessary agreements, are ring fenced.

 
(7)       To
approve the proposed financing of the capital programme and
       revenue
implications as set out in Executive Document
“AZ”.

 
(8)       To
delegate to the Director of Finance the decisions surrounding
       
financing of the capital programme to provide sufficient
flexibility to allow for the most effective use of the
Council’s resources.

 
(9)      
Reasons for Decision
           
           
The objectives of the CIP are to:

o  
Prioritise and co-ordinate funding to achieve the
Council’s Plan;

o  
Ensure that capital resources are directed to
maintain the Council’s statutory requirements across its
asset base;

o  
Invest in the most beneficial projects to meet
Bradford’s long-term requirements; and

o  
Manage investment effectively and
efficiently.

 

The Council is required, under the CIPFA Prudential
Code, to agree a capital strategy that is prudent and sustainable.
The revenue budget is set as part of the Medium-Term Financial
Strategy (MTFS), and this supports the financing of the capital
programme set out in this report.

 

Capital expenditure is defined as expenditure that
is predominantly incurred on buying, constructing or improving
physical assets such as land, buildings, infrastructure and
equipment.

 

The Council is required to set a balanced revenue
budget, and the capital programme forms part of this overall
process.

 

To be actioned by: Director of Finance
 
Overview and Scrutiny Area:
Corporate  
                  
(Lynsey Simenton)