Agenda item

This report presents the capital monitoring position at Quarter 2 for the current financial year 2024/25.

The Committee received a report presenting the capital monitoring position at Quarter 2 for the current financial year 2024/25.

The following matters were considered:

a)            Central Government Funding. A Member of the Committee asked if Central Government funding is likely to be forthcoming in the way it is needed at Epsom and Ewell BC, following the latest Budget. The Interim Chief Finance Officer responded to explain that the Budget has a 3.2% increase in the overall level of funding to Local Government but highlighted that most of the additional funding is skewed towards county, unitary, and metropolitan councils, and minimal funding is earmarked for district and borough councils. The Interim Chief Finance Officer highlighted that the Local Government Finance Settlement would be looked at by the Finance Team, once it is published in December, and will be summarised and shared with Members, in order to illustrate the impact it will have, along with the Budget, on Epsom and Ewell BC.

b)            CIL Spending. A Member of the Committee asked if there is deadline for when CIL funds need to be spent by. The Chief Accountant informed the Committee that there is no deadline for when CIL funds need to be spent. The Chief Accountant explained that there is only a deadline for Parish Council’s, as the relevant District or Borough Council can ask for the CIL money back if it has not been spent during a specific time period (5 years). The Chief Accountant explained that as Epsom and Ewell BC do not have parishes, CIL spending deadlines are not relevant.

c)            Capital Reserves. A Member of the Committee asked for clarification regarding the diminishing capital reserves. The Member acknowledged that the reserves have money going into them from the Revenue Budget, however asked if it was the case that the money going into the reserves annually, isn’t keeping up with the rate that the reserves are diminishing. The Interim Chief Finance Officer confirmed that is correct and highlighted that there is a £500k revenue reserve contribution set out in table 4.1 of the report. 

d)            Town Hall Relocation Project. A Member of the Committee asked about the cost of the Town Hall Relocation Project and if it was keeping to budget and if the budget has been allocated. The Interim Chief Finance Officer informed the Committee that they have a detailed breakdown of what the funds that have been allocated will be spent on, and the contingency within the £7milion. The Interim Chief Finance Officer explained that there will be ongoing monitoring of the spend against the £7million, and they have been assured by the Property Management Company, who have costed the proposal, that it will be delivered within budget, and any overspend warning signs will be flagged up. The Chief Accountant explained that as well as the £7million capital funds, there is also £500k revenue funds, which has seen more spending at this stage, due to the preliminary project management work needed with such a large project. The Chief Accountant informed the Committee, that there will be an increase in spending of the capital funds at the beginning of the 2025/26 financial year as the project progresses.

Following consideration, the Committee unanimously resolved to:

(1)      Receive the capital monitoring position at quarter 2, as set out in the report:

(2)      Note the progress of capital projects as set out in Appendix 1.