Agenda item

Report of the Chamberlain.

Members received a report of the Chamberlain concerning the Cyclical Works Programme.

The Chairman stressed the importance of ensuring that the funding strategy embedded cyclical works as part of the future capital programme. Members were supportive of increasing the budget allocation to a cumulative £133.7m as recommended at option 3 in the report and supported the funding allocation against the overall programme for the next 5 years.

Several Members requested greater visibility on areas with ring-fenced budgets, such as the independent schools, the City of London Police, City Bridge Foundation and the Markets. The Chamberlain undertook to include further information on these through future financing plans and in the budget papers, to allow the Finance Committee to see the overall picture. 

A Member, also the Chair of the Investment Committee, sought assurance that the outsourced Chief Investment Officer (OCIO) function had taken the funding strategy into account when formulating their asset allocation recommendations. The Chamberlain replied that the funding strategy figures had not been included in the overall calculation, as this would not take place until February 2024 when the entire capital programme was put together following input from the Resource Allocation Sub-Committee and the Policy and Resources Committee. The OCIO’S recommendations on asset allocation were points of principle around investment strategy, based on the available sums of money and the likely medium-term requests for funding.

RESOLVED, that – Members:

a)    Note the report, including the profile and categories of CWP works across Backlog (the ‘bow wave’) and 3 years forward plan forecasts.

b)    Endorse a total 5-year budget allocation of £133m comprising £62.7m for City Fund plus £71m for City Estate to meet the immediate needs of Cyclical Works Programme for onward approval, under the budget setting process, to the Court of Common Council.

c)    Note the amount requested against the City’s Community Infrastructure Levy (CIL) of £30m to support the New Museum Build, which will enable release of £30m funds from the City Fund major projects reserve to be reallocated to Cyclical Works Programme forward plan, to be recommended to Resource Allocation Sub Committee in January 2024 and onward approval to Policy and Resources Committee.

d)      Note the amount requested against On-Street Parking Reserve monies totalling £4.4m to meet the costs of CWP works relating to City Fund car parks, recommended to Resource Allocation Sub Committee in January 2024 and onward approval to Policy & Resources Committee.