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Waverley Borough Council Committee System - Committee Document

Meeting of the Environment and Leisure Overview and Scrutiny Committee held on 18/01/2005
Financial Strategy 05/06 - 07/08



Summary & Purpose
This report puts forward revised proposals for the draft 2005/2006 Capital Programme in respect of General Fund services. The Programme will be subject to further consideration by the Overview and Scrutiny Committees during January and February 2005, consideration by the Executive on 7th February, and final approval by Council on 22nd February.

Quality of Life Implications
Natural Resource Use
Pollution Prevention and Control
Biodiversity and Nature
Local Environment
Social Inclusion
Safe Communities
Local Economy
Natural
Resource Use
Pollution
Prevention and Control
Biodiversity
and Nature
Local
Environment
Social
Inclusion
Safe, Healthy
and Active
Communities
Local
Economy
Positive
Positive
Positive
Positive
Positive
Positive
Positive



E-Government implications:

The draft Capital Programme contains provision to enable the delivery of Waverley’s E-Government Strategy.

Resource and legal implications:

Certain proposed schemes will enable the Council to fulfil its legal obligations; these include Disability Discrimination Act works, inspection and works to dangerous trees, cemetery headstone stability and action to prevent legionella disease. Resource implications are contained throughout the report.



Introduction

1. Proposals for the 2005/2006 – 2007/2008 Capital Programme were presented to the Executive on 7th December 2004. These proposals totalled some 3.9m in 2005/2006 compared with the guideline of 2.7m contained within the Financial Strategy. Therefore, the Executive requested the Officers to advise its meeting on 11th January which priority schemes should be programmed for 2005/2006 in the light of the resources that were likely to be available.

Draft 2005/2006 Capital Programme

2. The Chief Officer Group has reconsidered the capital bids and reduced, re-phased or removed amounts scheduled for 2005/2006. The revised draft Capital Programme is attached at Annexe 1.

3. In some cases, such as the second phase of the Central Offices Air Conditioning and Bus Shelter Improvements, the work has been deferred to 2006/2007.

4. Refurbishment of Farnham Sports Centre has been re-scheduled for preliminary works to commence in 2005/2006 and to be completed in 2007/2008.

5. Preliminary works for Godalming Leisure Provision reflect the likely expenditure profile, with 50,000 included in 2006/2007; should any expenditure be required in 2005/2006 this could be met from the Godalming Leisure Fund of 500,000 established last year.

6. Additionally, wherever feasible, amounts scheduled for 2005/2006 have been reduced by a minimum 10%, but it should be noted that in most cases these reduced amounts could not be sustained for more than one year.

Priorities 7. The Chief Officer Group has allocated expenditure within the revised Programme in line with the following priorities:
Information Technology Programme

8. Waverley has been awarded grants of 200,000 in 2002/2003 and 2003/2004 and 350,000 in 2004/2005 to facilitate the implementation of the Implementing Electronic Government (IEG) initiative. However, the maximum grant available for 2005/2006 will be 150,000. The initial Information Technology programme for 2005/2006 totalled 1,023,000, but the Chief Officer Group recognised the reality that only some 500,000 could be afforded and the Executive was advised of this on 7th December. Waverley’s IEG group has prioritised within this resource level and the reduced Programme, which is in accordance with Waverley’s IEG Statement, is detailed at Annexe 1. 9. Unfortunately, it has proved necessary to restrict the Information Technology Programme by a further 10% and at this stage the amount of 50,000 is shown as an overall target reduction for officers of the IEG Group to identify which are the most important schemes to meet Council and Government priorities. Weyhill Car Park

10. The draft Programme contains a sum of 450,000 to cover the Weyhill Car Park scheme. The Executive requested officers to make a business case for financing this scheme by prudential borrowing and this appraisal is contained at Annexe 2. This shows the scheme to be suited to prudential borrowing, which is recommended by the Chief Officer Group.

Three-Year Capital Programme 11. The proposals for 2006/2007 and 2007/2008 are still considerably in excess of resources currently allocated within Waverley’s Financial Strategy. However, there is scope for additional resources to become available in future years, although there are likely to be further competing demands on these including the possible need to finance an affordable homes programme. Partnership-Funding

12. Currently, the Capital Programme includes an overall annual provision of 300,000 for Partnership-Funding schemes. It is proposed to reduce this figure to a maximum of 200,000 pa; and it is noted that the continuation of this scheme for any amount beyond 2006/2007 is dependant upon additional resources becoming available.

Summary of Changes

13. The following table summarises changes proposed since the draft Programme was submitted to the Executive on 7th December.

SUMMARY OF REDUCTIONS TO 2005/2006 PROGRAMME
Disabled Facilities Grants (less than 10%)
25,000
Private Sector Renewal Grants (greater than 10%)
25,000
Central Offices Air Conditioning (deferred to 2006/2007)
15,000
Bus Shelter Improvement Programme (deferred to 2006/2007)
10,000
Godalming Leisure Provision (re-profiled to 2006/2007)
25,000
Farnham Sports Centre Refurbishment (re-profiled)
200,000
Summertime Special (covered by Active Communities Project)
3,000
Overall 10% Reductions
242,000
Partnership-Funding (Reduce from 300,000 pa to 200,000 pa)
100,000
Total Movement since 7th December Executive
645,000

Conclusion 14. Prudential borrowing in the sum of 450,000 for Weyhill Car Park will increase capital resources to 3.15m. Although the revised Programme remains in excess of this figure, it is regarded as a reasonable basis on which to proceed at this stage. The Programme will be subject to further consideration by the Overview and Scrutiny Committees during January and February 2005, final consideration by the Executive on 7th February and final approval by Council on 22nd February. Recommendation

It is recommended that the Executive


Background Papers (DoF)

Waverley’s Implementing Electronic Government Statement.
________________________________________________________________________

Contact Officer: Brian Long Telephone: 01483 523253
E-mail: blong@waverley.gov.uk




Comms/O&S3/2004-05/60