Issue - meetings

This report informs the Executive of the likely outturn position of the Council’s 2006/07 Capital Programme, based on the spend profile and information to November 2006, seeks approval for slippage and presents options to fund overspends.

RESOLVED: (i)         That the £99k of additional funding highlighted in the report at Table 10 be approved.

                        (ii)        That the re-profiling of £1.61m of budget from 2006/07 to future years, as indicated in Table 10, be approved.

                        (iii)       That the addition of overage to fund the potential overspend of up to £0.36m on the new depot, as detailed in paragraph 24, be approved.

                        (iv)       That the revisions to the capital receipts position for 2006/07 to 2009/10, as summarised in Annex B, be noted.

REASON:      To enable the Capital Programme to be managed effectively and to exercise the Executive’s responsibility to approve changes to the programme.

Members considered a report which informed them of the likely out-turn position of the Council’s 2006/07 capital programme, based upon the information up to November 2006, and presented requests for slippage and options to fund overspends.

The current approved programme for 2006/07 amounted to £53.408m, of which £39.379m was financed by external funding, leaving a cost to the Council of £14.029m to be funded from capital receipts.  The projected out-turn was £52.157m, or £1.251m less than the approved budget.  Key budget variances were summarised in paragraph 8 of the report.  Key implications of the programme, as reported to individual Executive Member and Advisory Panel meetings (EMAPs) were outlined in paragraphs 11 to 36.  Achievements during the year were highlighted in paragraph 10 – it was noted that these should also include provision of the replacement Depot.

In respect of the City Strategy programme, the Executive was asked to consider the following options to fund a likely overspend of £410k on the replacement Depot scheme:

Option 1 – Fund through capital receipts surplus.  This would reduce the funding available for future schemes.

Option 2 – Fund through Prudential Borrowing.  This would incur an ongoing charge and interest cost to the revenue budget of £23k per annum.

Option 3 – Fund from overage on the Foss islands retail development.  This was the recommended option, as the level of overage was now expected to be £0.26m more than budgeted for.

Table 10, at paragraph 37 of the report, provided a summary of the revised capital programme resulting from the changes reported to EMAP meetings, including scheme adjustments, re-profiling of budgets and requests for additional funding.  As a result of these changes, the total revised programme for 2006/07-2009/10 stood at £153.684m, of which £47.386m must be funded from capital receipts.  Further details of this revised programme were set out in Annex A to the report and details of capital receipts for this period were set out in (exempt) Annex B.

Members commented that the Council had made good progress in implementing its most ambitious programme ever, which would provide tangible improvements to the City.

RESOLVED: (i)         That the £99k of additional funding highlighted in the report at Table 10 be approved.

                        (ii)        That the re-profiling of £1.61m of budget from 2006/07 to future years, as indicated in Table 10, be approved.

                        (iii)       That the addition of overage to fund the potential overspend of up to £0.26m on the new depot, as detailed in paragraph 24, be approved.

                        (iv)       That the revisions to the capital receipts position for 2006/07 to 2009/10, as summarised in Annex B, be noted.

REASON:      To enable the Capital Programme to be managed effectively and to exercise the Executive’s responsibility to approve changes to the programme.