Agenda item

CORPORATE CAPITAL PROGRAMME 2018/19

The purpose of the report is to:

Ø  outline the current financial position for the 2018/19 corporate capital programme.
1.2 To seek approval to rephase capital budgets into 2019/20 and future years as detailed in Appendix A;

Ø  seek approval for the revised capital programme for 2018/19 after the rephasing as detailed in Appendix B;

Ø  seek approval for the Housing Revenue Account (HRA) capital programme after revisions and virements for 2018/19 detailed in paragraphs 3.6 - 3.8 and Appendix C;

Ø  seek approval for corporate capital programme proposals and the allocation of additional resources funded from available capital receipts per the capital strategy to support Older People’s Day Services, investment in Oracle E-Business Suite, investment in Strategic Investment Properties and to maintain Mell Square Car Park as detailed in paragraphs 3.9 to 3.20 and to use £455,000 of Prudential Borrowing to replace reserve funding as detailed in 3.21; and

Ø  approve the passporting of Government capital allocations for 2019/20 to individual cabinet portfolios for project allocation.

Minutes:

The Cabinet was:

 

Ø  Provided with an outline of the current financial position for the 2018/19 corporate capital programme;

 

Ø  Invited to approve the  rephasing of capital budgets into 2019/20 and future years as detailed in Appendix A to the report;

 

 

Ø  Invited to approve the revised capital programme for 2018/19 after the rephasing as detailed in Appendix B to the report;

 

Ø  Invited to approve the Housing Revenue Account (HRA) capital programme after revisions and virements for 2018/19 detailed in paragraphs 3.6 - 3.8 and Appendix C to the report;

 

 

Ø  Invited to approve the corporate capital programme proposals and the allocation of additional resources funded from available capital receipts per the capital strategy to support Older People’s Day Services, investment in Oracle E-Business Suite, investment in Strategic Investment Properties and to maintain Mell Square Car Park as detailed in paragraphs 3.9 to 3.20 of the report  and to use £455,000 of Prudential Borrowing to replace reserve funding as detailed in 3.21 of the report; and 

 

Ø  Invited to approve the passporting of Government capital allocations for 2019/20 to individual Cabinet Portfolios for project allocation.

In presenting the report the Director of Resources and Deputy Chief Executive advised Members that in relation to the rephasing of the 2018/19 programme over the last three months officers had been working with project managers to identify projects which could be rephased into future years. These totalled £12.378m and were analysed by Cabinet Portfolio in paragraph 3.22, Table 1 in the report and individual projects were detailed at Appendix A.

If Cabinet approved the proposals detailed in the report the Council’s revised corporate capital programme for 2018/19 would be £37.142m General Fund and £17.556m for the HRA, with a revised capital programme of £54.698m for 2018/19.

With regard to the programme approvals in 2018/19 for the HRA capital programme Appendix C detailed HRA scheme adjustments to maximise the deliverables within the overall HRA capital programme. Specific approval was sought for an increase of £50,000 in the 2018/19 HRA capital programme for the conversion of office space to residential use at Linacre House, current budget £100,000. With regard to Stock Growth Development the approved budget for 2018/19 was £8.637m. There were no approved schemes for £2.310m and approval was sought to remove this budget from the programme in 2018/19. Future schemes would seek separate approval to be added to the HRA programme in future years. If both proposals were approved the HRA Stock Growth Development budget for 2018/19 would decrease by £2.260m.

 

In regard to programme approvals in the 2018/19 corporate capital programme the Director advised Members of the schemes being taken forward and the costs which in summary included the use of capital receipts to support Older People’s Day Services, investment in Oracle E-Business Suite, to maintain Mell Square Car Park in 2019/20 and replenish Strategic Land Fees in 2019/20.

 

The Director advised that in relation to the building of a new school at Yorkswood (£5.692 million) this project was contained within the current three year corporate capital programme. The project was financed from multiple sources including £445,000 from Reserves. Approval was sought to swap the reserve funding and replace it with prudential borrowing. The cost of the borrowing would be £23,000 per annum for 40 years and would be funded from the treasury management revenue budget.

 

RESOLVED:
(i) That the rephasing of the corporate capital programme into 2019/20 as set out in the report and Appendix A be approved;

 

(ii) That the revised corporate capital programme for 2018/19, after rephasing, as detailed in Appendix B be approved;

 

(iii) That the HRA capital programme for 2018/19, after capital programme proposals and virements, detailed in paragraphs 3.6 - 3.8 and Appendix C to the report be approved;

 

(iv) That the capital programme proposals and allocation of £2.050 million of available capital receipts detailed in paragraphs 3.9 - 3.20 and use of £455,000 Prudential Borrowing to replace reserve funding as detailed in 3.21. of the report be approved; and

 

(v) That the passporting of Government capital allocations for 2019/20 to individual Cabinet Portfolios for project allocation be approved.

 

Supporting documents: