Borrowing could be needed for Telford fire station project
Shropshire’s fire service may need to borrow money to complete renovations at Telford Central Fire Station, a finance report says.
Fire authority treasurer James Walton writes that the initial stages will be funded from the “major projects reserve”, which stands at nearly £9 million.
Work is expected to begin in early 2020 to remodel the Stafford Park site to house three fire engines and other specialised equipment.
In a report for the Shropshire and Wrekin Fire and Rescue Authority’s resources committee, Mr Walton writes: “In the later stages of the planning period, some borrowing may be required to fund part of the Telford improvements, and some of other later schemes.”
In his mid-year treasury review, he says “some preliminary work” has been carried out at Telford Central to get it ready for the refit.
A second document by Mr Walton, titled “reserves and funds”, says: “The authority has used reserves successfully in recent years to fund its capital programme, most notably the fire station, workshop and headquarters in Shrewsbury, and in future will be utilised for the major redevelopment work planned at Telford.”
The “capital – major projects” fund was set up using revenue savings with the aim of “minimising borrowing and, therefore, committed debt charges in future years”, he says.
Contributions
It now stands at £8,760,000, accounting for more than half of the £16,298,000 in all 12 of the authority’s reserve funds.
In a third report, “2020-21 and later years revenue and capital budgets”, Mr Walton says: “The initial stages (of the Telford Central project) will be funded from contributions from the major projects reserve, which has been built up in readiness for the major development.
“In the later stages of the planning period, some borrowing may be required to fund part of the Telford improvements, and some of the other later schemes.
“The associated borrowing costs are currently included in the authority’s scenario planning. The requirement to borrow will be discussed with treasury services.”
The strategy and resources committee will discuss Mr Walton’s reports when it meets at the Shropshire Fire and Rescue Service headquarters, in Shrewsbury, on Monday.
In a report for a Shropshire and Wrekin Fire Authority meeting earlier this year, Chief Fire Officer Rod Hammerton and planning manager Ged Edwards confirmed an architect had been appointed and “start on site is currently anticipated early 2020”.
The Telford renovation follows redevelopment at the Clun and Much Wenlock fire stations.
