Decision details

To approve matters relating to the 2016/17 capital budget as at the end of the second quarter

1. That Council be recommended to:

a)      Approve to undertake borrowing of £30.0 million and pay a capital grant of the equivalent amount to the West Midlands Combined Authority – Land Remediation Fund.  This borrowing is required until the powers of the West Midlands Combined Authority (CA) are revised to enable them to borrow for non-transport related purposes.  The CA will in return pay a revenue grant to the Council to cover the borrowing costs of interest and minimum revenue provision (paragraph 4.4).

b)   Approve the additional General Fund resources of £3.4 million identified for;

i.     nine new projects totalling £1.9 million (paragraph 4.1).

ii.    i54 Western Extension, a new project, of £1.5 million subject to Cabinet approving the exempt report of the same name also on the agenda (paragraph 4.5).

2.That the General Fund virements totalling £6.5 million be approved, as detailed at Appendix C of the report for;

i.     existing projects totalling £3.3 million (paragraph 3.12);

ii.    new projects totalling £2.2 million (paragraph 4.2).

iii.   i54 Western Extension, a new project, of £1.0 million subject to Cabinet approving the exempt report of the same name, also on the agenda, and Council approving the additional resources 14 December 2016 (paragraph 4.12).

b)      That authority be delegated to the Director of Governance to agree and execute the legal agreement between the Council and the CA covering the borrowing to be undertaken and the revenue grant to be received.

3.       That it be noted the General Fund expenditure position at quarter two of 2016/17 for existing projects stands at 33.9% of the approved capital budget.

4.       That the General Fund forecast outturn for existing projects for 2016/17 stands at 83.2% of the approved capital budget be noted.

5.       That it be noted the HRA expenditure position at quarter two of 2016/17 for existing projects stands at 28.0% of the approved capital budget.

6.       That it be noted the HRA forecast outturn position for existing projects for 2016/17 stands at 72.8% of the approved capital budget.

7.       That it be noted this report incorporates four revenue budget reduction and income generation proposals which require capital resources and are subject to approval by Cabinet and Council in February/March 2017 as part of the Budget 2017/18 setting process. The inclusion of the four projects in this report is on the assumption that approval will be given and therefore, their progression is dependent on that decision. The names of the budget reduction and income generation proposals/projects are:

·       Waste & Recycling strategy - service transformation

·       Highways Management

·       Commercial Facilities - Northycote Farm

·       District Parking

If the budget reduction and income generation proposals are not approved, the capital programme will be reduced accordingly.