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Bowling Green site money needs to be moved

 
Created on 05/11/2020 @ 07:16
Money needed to complete the delayed Bowling Green council housing scheme in Newtown will need to be rolled into the next financial year.

Due to delays, money set aside for many of Powys County Council’s building project, including the Bowling Green site, will have to be moved.

Finance portfolio holder, Cllr Aled Davies, that the capital programme needs to be re-profiled.

Powys County Council has just over £115 million in it’s capital programme ready to use for building projects in the 2020/21 financial year

So far £21.62 million has been spent, and another £22.43 million committed to projects.

In this year’s budget of £269 million, £12.18 million has been set aside to cover any borrowing requirements for the building programme.

Cllr Davies said: “The report provides us with an updated position for this financial year.

“We do have a significant programme.

“A number of schemes need to be re-profiled as there have been delays on work progressing, our expected spend in the current year will not be achieved.”

“We support our borrowing through past and future schemes through our revenue budget, this is £12.18 million in this financial year.”

Of this year’s programme 56 per cent has been funded through borrowing.

Money also needs to be moved between accounts due to grant funding been received.

This process is known as a virement.

Funding for the Heol y Ffynnon housing scheme in Brecon, needed to be brought forward because the scheme is running ahead of schedule.

It had received a Welsh Government grant of £170,000 a year for 29 years to cover borrowing repayments.

A further £2.3 million of budgeted borrowing for the project due to be used  next year, has been brought forward.

The Bowling Green flat development in Newtown had received a £2.19 million grant,

To finish off the scheme £640,000 of the grant, as well as borrowing of £1.2 million will be rolled over into next year.

Other changes that needed to be signed off include a virement of £800,000 of the £1.36 million allocated to build business units at the Abermule business park, will now be rolled forward into next year.

£8.6 million earmarked for work on council housing will also be pushed through.

Cabinet noted and agreed the virements, which will also need full council approval.

 

By Elgan Hearn, Local Democracy Reporting Service