Issue - meetings

This report informs Members of the likely outturn position of 2008/09 Capital Programme based on the spend profile and information to August 2008.  It informs the Executive of any under or overspends and seeks approval for any resulting changes to the programme, details any slippage and seeks approval for the associated funding to be slipped to or from the financial years to reflect this, and outlines the funding position of the capital programme, taking account of the current capital receipts forecasts for the three year capital programme.

RESOLVED: (i)         That the revised 2008/09 budget of £63.930m, as set out in paragraph 6 of the report (Table 2) be approved.

                        (ii)        That the net slippage of £12.248m into future years, and the additions of £217k in 08/09, £4.424m in 09/10 and £203k in 10/11 be approved.

                        (iii)       That the re-stated capital programme for 2008/09 to 2010/11, as set out in paragraph 24 (Table 11) and detailed in Annex A, be approved.

                        (iv)       That the capital receipt projections for 2008/09 to 2010/11, as summarised in paragraph 26 (Table 12) and set out in (exempt) Annex B, be noted.

                        (v)        That the use of the re-classified PFI funds to overcome the early years shortfall in funding be noted.

REASON:      To enable the effective management and monitoring of the Council’s capital programme.

[See also under Part B Minutes]

Members considered a report which presented the likely out-turn position of the Council’s 2008/09 Capital Programme, based upon information up to August 2008, and sought approval for any necessary alterations to or slippage on the programme.

The current approved programme amounted to £75.942m, of which £23.567m must be financed from capital receipts.  An out-turn of £63.930 (a net decrease of £12.012m) was predicted on the approved budget, due mainly to delays on the Administrative Accommodation project.  By the end of August 25% of the budget had been spent, as compared to 23% over the same period last year. In-year capital receipts were forecast to be down against target by £3.983m, primarily due to timing issues, with the majority of slippage expected early in 2009/10.  The main achievements on capital schemes were highlighted in paragraph 8 of the report.  Further details of progress in each directorate area, as reported to EMAPs, were set out in paragraphs 10 to 23.

The capital programme, as revised by the changes set out in the report, was summarised at paragraph 24 (table 11).  Members’ approval was sought for the revisions, including slippage.  Attention was drawn the following shortfalls on specific projects:

• £100k on the Hazel Court scheme, due to the reduction in value of a significant capital receipt
• £154k on the 2008/09 Disabled Facilities Grant scheme, due to a lack of Right to Buy sales in the current financial year.

Members were asked to make a recommendation to Council to ensure that these shortfalls were funded from capital receipts.

With reference to the comments of the Shadow Executive on this item, Members expressed concern about the recently publicity given to a specific capital receipt and noted that the matter would be subject to investigation by the Monitoring Officer.

RESOLVED: (i)         That the revised 2008/09 budget of £63.930m, as set out in paragraph 6 of the report (Table 2) be approved.¹

                        (ii)        That the net slippage of £12.248m into future years, and the additions of £217k in 08/09, £4.424m in 09/10 and £203k in 10/11 be approved.²

                        (iii)       That the re-stated capital programme for 2008/09 to 2010/11, as set out in paragraph 24 (Table 11) and detailed in Annex A, be approved.³

                        (iv)       That the capital receipt projections for 2008/09 to 2010/11, as summarised in paragraph 26 (Table 12) and set out in (exempt) Annex B, be noted.

                        (v)        That the use of the re-classified PFI funds to overcome the early years shortfall in funding be noted.

REASON:      To enable the effective management and monitoring of the Council’s capital programme.