Decision details

Purpose of report: Present the 5 year capital programme budget 11/12 to 15/16 including new capital schemes and appropriate funding arrangements, following this years Capital Resources Allocations Model (CRAM) process.

Members are asked to: Recommend to full Council the approval of the 5 year Capital Programme Budget 11/12 to 15/16, the new schemes and the associated funding.

RECOMMENDED:That Council:

(i)Agree to the revised capital programme of £175.318m, that reflects a net overall increase of £18.891m (as set out in the ‘growth’ column of Annex A with the amendments totalling £2.616m set out in (d) and (e) below).  Key elements of this include:

a)the bids recommended in paragraph 114 (table 5) totalling £7.205m, subject to the following amendment:

·        the timing of Yearsley Pool energy solution moved to 2012/13 from 2011/12 to permit thorough investigation of necessity and appropriate technology;

b)     the schemes funded from external resources in paragraph 122 (table 8) totalling £3.629m;

c)      the revised prudential borrowing profile for the IT development plan in paragraph 126 (table 9) totalling £3.750m that shows a decrease of £250k per annum in years 11/12 - 14/15 and an extension of the programme by £750k in 2015/16 containing specific schemes;

d)     the use of HRA balances to fund HRA capital schemes as set out in paragraph 130 (table 10) totalling £5.691m subject to the following amendment:

·        the inclusion of £700k (including work at The Glebe) towards a building insulation programme, including the fitting of double glazed windows, to commence in 2011/12 to bring the increase in the HRA capital programme to £6.391m;

e)      the inclusion of the following new/amended schemes totalling £1.916m with a revenue implication of £29k in 2011/12:

·        £1.000m in 2012/13 to be utilised in conjunction with the Environment Agency for the provision of the Leeman Road flood defences

·        an additional £50k p.a.(to the £80k p. a. already included in the LTP line) allocation for the street lamppost replacement programme from 2011/12 to 2015/16, totalling £250k

·         £100k p.a. from 2011/12 to 2015/16 to fund an energy generation project which will exploit modern technologies such as photovoltaic cells and which is aimed at providing an additional revenue stream, through the sale of energy, by utilising the availability of new “feed in” tariffs, totalling £500k

·        an additional capital investment in structural highways of £166k for 2011/12.

(ii)Note that the revenue implications of the above amendments in 2011/12 are £29k, to be reflected in the revenue budget proposals.

(iii)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.

(iv)Approve the full restated programme as summarised in Annex A totalling £175.318m (£172.702m plus £2.616m amendments) up to 2015/16.

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