Sepolesa le Mokhomishenara oa Botlokotsebe bakeng sa Surrey - Rekoto ea ho Etsa Liqeto
Report Title: Prudential Indicators and Annual Minimum Revenue Provision Statement 2020/21
Nomoro ea qeto: 53/2020
Mongoli le Karolo ea Mosebetsi: Kelvin Menon – Ramatlotlo
Tšireletso ea Tšireletso: HLALELE
Summary
Under the CIPFA Prudential Code for Capital Finance the Prudential Indicators the Prudential Indicators should be reported on and reviewed at the mid-year point. This report (available on request) seeks to satisfy that requirement.
Based on the current and anticipated future capital program the Prudential Indicators shows that borrowing will be required from 2020/21 to fund the new HQ in Leatherhead. Although borrowing is likely to increase this is forecast not to exceed the Capital Financing Requirement (CFR) in the period to 2023/24 (Appendix 2). The borrowing limit, Appendix 4, has been set on the assumption that the entire cost of the new HQ may have to be funded by debt pending a sale of assets however this has not been reflected in the other indicators at the moment. The indicators also show the incremental impact of funding debt on both the Police budget and Council Tax (appendix 1)
Appendix 5 of the Prudential indicators sets parameters for the mix of borrowing and investment. These have been set as wide as possible in order to take advantage of the most advantageous rates – however no investments will be made that last longer than a year.
Appendix 6 sets out the calculation and amount of “Minimum Revenue Payment” or MRP which must be transferred from revenue to repay debt. This indicates that if the capital program goes to plan then an additional £3.159m will need to be taken out of the Revenue budget to repay debt. This requirement for MRP is taken account of in the consideration of the affordability of capital projects funded by debt.
Keletso:
Tumello ya Mokomishinara wa Botlokotsebe le Sepolesa
I note the report and approve:
- The revised Prudential Indicators for 2020/21 to 2023/24 set out in Appendices 1 to 5;
- The Statement of Minimum Revenue Provision for 2020/21 in Appendix 6.
Mosaeno: David Munro
Date: 17th November 2020
Liqeto tsohle li tlameha ho kenyelletsoa rejistareng ea liqeto.
Libaka tsa ho nahanela
Consultation
None
Liphello tsa lichelete
Tsena li ngotsoe pampiring
Legal
None
Likotsi
Changes to capital program could impact the Prudential Indicators and so they will continue to be reviewed on a regular basis
Tekano le mefuta-futa
None
Likotsi litokelong tsa botho
None