Agenda item

[To report on the General Fund and Housing Revenue Account (HRA) capital programmes outturn position at the end of 2015/16, and an update on their financial performance as at quarter one of 2016/17 and to recommend to Full Council revised General Fund and HRA capital programmes for the period 2016/17 to 2020/21]

Cllr Andrew Johnson presented a report on the outturn position of the capital budget for 2015/16 and on an update of the 2016/17 financial performance of the General Fund and Housing Revenue Account (HRA) capital programmes and the revised forecasts for 2016/17 to 2020/21 as at quarter one of 2016/17. The report also included a revised General Fund and HRA capital programmes for the period 2016/17 to 2020/21.

Cllr Johnson also informed Cabinet that an update report on the Civic Halls would be presented to Cabinet (Resources) Panel on 19 July 2016. If the recommendations to the report are approved, it would impact on the capital programme to be reported to Full Council on 20 July. He there sought approval to an additional recommendation to fully reflect in the capital programme report to Full Council, any changes made to the capital programme between now and 20 July 2016.

Resolved:

1.     That Full Council be recommended to:

a.     Approve the revised medium term General Fund capital programme of £272.6 million, an increase of £11.0 million from the previously approved programme, reflecting the latest projected expenditure for the medium term.

b.     Approve the revised medium term HRA capital programme of £249.5 million, an increase of £24.1 million from the previously approved programme.

c.     Approve the additional resources for two new and sixty two existing General Fund projects totalling £11.0 million and for 9 existing HRA projects totalling £24.1 million.

d.     Approve the updated capital financial strategy relating to: the approval of future capital projects, the declaration of identified underspends and the use of capital receipts to either reduce the Councils need to borrow to fund the approved capital programme or to apply the receipts on revenue reform projects under the new capital receipt flexibility arrangements.

2.     That ten General Fund and two HRA virements totalling £14.7 million be approved.

3.     That the updated schedules of works for the capital projects under the following directorates be approved:

a.     Corporate: ICTS and in relation to Education; Primary Expansion programme, Capital Maintenance and Building Schools for the Future (BSF).

b.     People: Sports Investment Strategy, Co-location, Short Breaks for Disabled Children, Community Hubs and Early Education – Two Year Education Pilot.

c.     Place: Corporate Asset Management, Urban Parks Refurbishment, Disposals Programme, Accessing Growth Fund, Managing Short Trips, Structural Maintenance, Markets Services, Leisure Centres and Southside programme.

d.     Place: Housing Revenue Account.

4.     That authority be delegated during 2016/17 to the Cabinet Member for Resources in consultation with the Director of Finance to approve the allocation of the provision of the ‘Corporate Contingency’ to individual capital projects in order that corporate priorities may be addressed in a more agile and timely manner.

5.     That authority be delegated to the Cabinet Member for City Environment, in consultation with the Strategic Director for Place, to approve the allocation of the Non Highway Structures provision for future programmes budget, to individual capital projects in order to address structural issues in a timely manner.

6.     That authority be delegated to the Cabinet Member for Resources, in consultation with the Director of Finance, to approve the allocation of the provision of the ‘Corporate Asset Management Programme’ to reserve capital projects, in order so that they may be progressed in a timely manner if priority projects are delivered under budget or do not proceed

7.     That it be noted that:

a.     The General Fund outturn position for 2015/16 which stands at 74.3% of the approved capital budget.

b.     The General Fund expenditure position for quarter one of 2016/17 stands at 15.3% of the approved capital budget.

c.     The HRA outturn position for 2015/16 stands at 80.8% of the approved capital budget.

d.     The HRA expenditure position for quarter one of 2016/17 stands at 20.3% of the approved capital budget.

e.     At the time of writing the report, work was being undertaken in relation to a number of specific capital projects. As a result of this work, should any amendments to the capital programme be approved by Cabinet (Resources) Panel subsequent to this meeting and prior to Council on 20 July 2016, then the report to Council would fully reflect such changes and provide a comprehensive update to the capital programme.