Agenda item

This report sets out the proposed capital programme budget for the period 2009/10 to 2013/14 and asks the Executive to make appropriate recommendations to Council.

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.

Members considered a report which presented the current position of the  Capital Programme for the period 2009/10 – 2013/14 and examined how existing receipts and other resources could be used to achieve the Council’s objectives.

The current approved programme for 2008/09 to 2010/11 stood at £189.094m, financed by £156.409m external funds and £32.685m capital receipts.  The programme comprised the following key elements:

• Schemes fully funded (by Government departments) - £113.603m
• Political imperatives - £63.598m
• Rolling programmes - £4.870m
• Small schemes with CYC funding - £7.023

It was noted that most of the Council’s capital receipts were already committed to schemes that could not easily be reduced or re-prioritised.

Bids for capital funding put forward by departments under the CRAM process were summarised in paragraphs 24 to 49 of the report and detailed in Annex 65 bids had been received, of which 40 were fully funded, 6 were rolling programme bids and 19 would require additional discretionary resources.  In total, the bids would increase the capital programme by £128.725 and require an additional £49.282m of capital receipts.

Having noted the comments made on this item under Public Participation and having noted that the Shadow and having noted that the Shadow Executive had reserved their position on the budget, it was

RECOMMENDED:That Council:¹

(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.