Decision details

Members are asked to: Consider the capital budget proposals from Directorate EMAPS and consider corporate funding of the programme.

RECOMMENDED:That Council:

(i)Approve the revised capital programme of £185.515m, as set out in the report and annexes, and specifically the inclusion in the capital programme of new schemes totalling £56.958m.

                                    (ii)        Approve:

a)                 the bids in paragraphs 24-49 of the report, totalling £10,586m and

b)                 the additional externally funded schemes in paragraph 54, totalling £46,372m.

                                    (iii)       Agree to provision being made in the capital programme, subject to further detailed reports being brought back to the Executive, for five further additional schemes, as follows, resulting in a total capital programme of £194.165m:

a)                 Community Stadium and athletics facilities -£4m (this being an initial estimated net cost, in year 2011/12)

b)                 New recycling facility – net cost £2.5m (all in 2011/12)

c)                  Acomb Office - £1.75m gross, £0.9m prudential borrowing, £0.85m net cost (0.5m in 2010/11, £1.25m in 2011/12)

d)                 Street light modernisation expenditure of £100,000 in 2009/10 and £200,000 in 2010/11, to be financed from the Venture Fund.

e)                 £100,000 in 2009/10 to fund a programme aimed at improving energy conservation standards in homes in the City.

                                    (iv)       Note the overall funding position identified in the report, which highlights a current shortfall in resources over the next five years, which the Council will need to address through increased revenue contributions in the medium term.

                                    (v)        Note the additional impact on the funding position of the inclusion of the five new schemes as set out in Recommendation (iii) above.

                                    (vi)       Endorse the principle of any un-committed revenue budget under-spending, which may be considered as part of out-turn reports, being allocated to assist in balancing the capital programme.

                                    (vii)      Agree to establish a Capital Reserve, to support the funding of the capital programme, to be funded from any future revenue under-spending, together with potential contributions from general reserves, this to be regularly updated as part of ongoing reviews of Council Reserves.

                                    (viii)     Note, in view of the potential funding shortfall towards the end of the capital programme period, the need for regular updates of the 5 year plan to the Executive and Council, with such reports to provide an update on the overall 5 year plan and to identify any required amendments that may be needed to expenditure and resources projections, to ensure that the capital plan is fully resourced in the medium term.

                                    (ix)       Agree the use of £170k of prudential borrowing in respect of the Millfield Lane Community Sports Centre.

                                    (x)        Approve the use of £111k of Housing Revenue Account (HRA) balances to fund the HRA capital programme elements in 2009/10.

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