Agenda item

This report presents the current position of the 2011/12 – 2015/16 capital programme, highlights the existing funding position and associated pressures and then presents the new bids received as part of this years Capital Resource Allocation Model (CRAM) process covering the period 2012/13 – 2016/17.

RECOMMENDED: That Council:

i)           Agree to the revised capital programme of £187.364m, that reflects a net overall increase of £53.641m (as set out in paragraph 32 table 9 and in Annex A ‘growth’ column). Key elements of this include:

a) Extension of prudential borrowing funded Rolling Programme schemes totalling £2.105m as set out in paragraph 10 table 2 and summarised in paragraph 32 table 9;

b) New  schemes totalling £10.405m including increase in prudential borrowing of £2.595m as set out in paragraph 13 table 3 and summarised in paragraph 30 table 10;

c) Reduction of existing prudential borrowing funded schemes totalling £4.500m as set out in paragraph 15 table 4 and summarised in paragraph 32 table 9;

d) New externally funded and HRA funded schemes totalling £16.381m including HRA balances of £4.447m and including £500k of New Homes Bonus funding for Replacement of Street Lighting  as set out in paragraph 18 table 5 and summarised in paragraph 32 table 9.

e) Extension of the existing IT development programme totalling £750k in 16/17 funded by prudential borrowing paid for from with in existing revenue budgets as set out in paragraph 31 table 8 and summarised in paragraph 32 table 9.

ii)           Approve the re-profiling of £150k from future years to 12/13 in relation to replacement of unsound lighting columns scheme as shown in Annex A.

iii)          Approve the full restated programme as summarised in Annex A totalling £187.364m cover financial years 2012/13 to 2015/16 as set out in paragraph 34 table 10.

iv)          Approve the establishment of the EIF and the proposed priority themes of expenditure as follows:

o      Get York Moving including

§    Access York Park and Ride - £2.5m

§    Better Bus Fund - £2.0m see Annex C

o      Digital York

o      Reinvigorate York

o      Economic Inclusion York

o      Sustainable Economy York

v)           Approve Council funding to the EIF as follows – £20m of prudential borrowing over next 5 years, all of the New Homes Bonus funds (currently estimated at £8.5m) from 2012/13 onwards, except for £0.5m in 2012/13 which is allocated for Street Lighting replacement.

vi)              Agree that the Director of CBSS be authorised to take decisions on the financing of any expenditure, and profiling of any borrowing, in accordance with the overall financial framework agreed by Council

vii)          Agree that decisions on the actual schemes, and monitoring of such schemes will be considered through regular financial monitoring reports to Cabinet.

REASON:                  To set a balanced capital programme as required by the Local Government Act 2003.

Members considered a report which presented the current position of the 2011/12 – 2015/16 capital programme, highlighting the existing funding position and associated pressures and presented the bids received as part of the current year’s Capital Resource Allocation Model (CRAM) process for 2012/13 – 2016/17.

The current approved programme for 2011/12 – 2015/16 amounted to £192.254m (£314.637m including HRA self financing), financed by £104.417m of external funding and Council controlled resources of £87.837m (£210.220), detailed at Table 1, paragraph 3 of the report. In terms of the funding position, significant reliance continued to be placed on the achievement of a small number of high value asset disposals which had been affected by the economic downturn.

Of bids received under the CRAM process, 6 were fully funded from external resources, 6 were rolling programme bids and the remaining 12 sought additional discretionary resources over and above those already approved in the Capital Programme. Requests that would increase the programme by £24.391m had been made comprised of £11.225m of general fund schemes and £13.166m of HRA schemes. Full details of the key schemes recommended for approval and their impacts were set out at paragraph 5 and Annex B of the report. Rolling programme schemes that required funding on an ongoing basis were set out in Table 2 at paragraph 10 amounting to £2,105m. Details of the new bids which required Prudential Borrowing funding were summarised in Table 3, paragraph 13 and detailed at Annex B, existing schemes identified for removal from the programme summarised at Table 4, schemes that were fully externally and HRA funded summarised at Table 5 together with the net funding position of the Prudential Borrowing Schemes at Table 6.

As part of the budget process it was proposed to create an Economic Infrastructure Fund (EIF) totalling £28.5m over a 5 year period. Funding would be sourced from the New Homes Bonus (NHB) and Prudential Borrowing.

A summary of the additions and amendments made showed an overall increase in the programme of £50.241m, detailed in Table 9 with the proposed budget for each directorate for the next 5 years summarised in Table 10 and detailed in Annex A.

Cabinet Members responded to issues within their own portfolio areas.

RECOMMENDED: That Council:

i)           Agree to the revised capital programme of £187.364m, that reflects a net overall increase of £53.641m (as set out in paragraph 32 table 9 and in Annex A ‘growth’ column). Key elements of this include:

a) Extension of prudential borrowing funded Rolling Programme schemes totalling £2.105m as set out in paragraph 10, table 2 and summarised in paragraph 32 table 9;

b) New schemes totalling £10.405m including increase in prudential borrowing of £2.595m as set out in paragraph 13, table 3 and summarised in paragraph 30 table 10;

c) Reduction of existing prudential borrowing funded schemes totalling £4.500m as set out in paragraph 15, table 4 and summarised in paragraph 32, table 9;

d) New externally funded and HRA funded schemes totalling £16.381m including HRA balances of £4.447m and including £500k of New Homes Bonus funding for Replacement of Street Lighting as set out in paragraph 18, table 5 and summarised in paragraph 32 table 9.

e) Extension of the existing IT development programme totalling £750k in 2016/17 funded by prudential borrowing paid for from with in existing revenue budgets as set out in paragraph 31, table 8 and summarised in paragraph 32 table 9.

ii)           Approve the re-profiling of £150k from future years to 2012/13 in relation to replacement of unsound lighting columns scheme as shown in Annex A.

iii)          Approve the full restated programme as summarised in Annex A totalling £187.364m cover financial years 2012/13 to 2015/16 as set out in paragraph 34, table 10.

iv)          Approve the establishment of the Economic Infrastructure Fund (EIF) and the proposed priority themes of expenditure:

o      Get York Moving including

§    Access York Park and Ride - £2.5m

§    Better Bus Fund - £2.0m (Annex C)

o      Digital York

o      Reinvigorate York

o      Economic Inclusion York

o      Sustainable Economy York

v)           Approve Council funding to the EIF from £20m of prudential borrowing over the next 5 years, all of the New Homes Bonus funds (currently estimated at £8.5m) from 2012/13 onwards, except for £0.5m in 2012/13 which is allocated for Street Lighting replacement.

vi)              Agree that the Director of CBSS be authorised to take decisions on the financing of any expenditure, and profiling of any borrowing, in accordance with the overall financial framework agreed by Council.

vii)          Agree that decisions on the actual schemes, and monitoring of such schemes will be considered through regular financial monitoring reports to Cabinet.

REASON:                  To set a balanced capital programme as required by the Local Government Act 2003.