To receive a report on the key issues for consideration regarding the capital funding strategy and the allocation of supported and unsupported borrowing for capital expenditure for 2006/07.

THAT it be recommended to Council that:

(a)   the basis of distributing supported borrowing for Children’s Services, Transport and Housing as outlined in paragraph 6 be endorsed;

(b)   a minimum level of Prudential Borrowing of £5,843,000 for 2006/07 be approved as outlined in paragraph 15; and

(c)   £5,000,000 Prudential Borrowing be approved for each year 2007/08 and 2008/09 to enable commitments from previous years Prudential Borrowing allocations to be funded and to enable future bids to be considered; and

(d)   the capital strategy permits the ability to reprofile schemes should slippage occur in projects funded by Prudential Borrowing.  This flexibility is retained to ensure projects can be brought forward should any Prudential Borrowing become available through slippage.

Cabinet is responsible for recommending to Council the basis for allocating supported and unsupported borrowing in line with the Council’s Capital Strategy.

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