Waverley Borough Council Home Page Waverley Borough Council Home Page


Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 05/02/2008
Appendix C.3 - Financial Strategy 2008/2009 - 2010/2011 Draft General Fund Capital Programme 2008/2009



Summary & Purpose
The purpose of this report is to agree the final recommendation to Council regarding the General Fund Capital Programme for 2008/2009. The report contains observations from the Overview and Scrutiny Committees.

APPENDIX C.3
Waverley Borough Council

EXECUTIVE - 5TH february 2008

Title:
FINANCIAL STRATEGY 2008/2009- 2010/2011
DRAFT GENERAL FUND CAPITAL PROGRAMME 2008/2009
[Portfolio Holder for Finance: Cllr M H W Band]
[Wards Affected: All]

Summary and purpose:

The purpose of this report is to agree the final recommendation to Council regarding the General Fund Capital Programme for 2008/2009. The report contains observations from the Overview and Scrutiny Committees.

Environmental implications:

The draft Capital Programme contains proposals that will benefit the environment.

Social / community implications:

The draft Capital Programme contains proposals that will benefit the community.

E-Government implications:

The draft Capital Programme contains proposals for implementing E-Government.

Resource and legal implications:

There are no specific legal implications as a result of the recommendation of this report, although the Capital Programme contains budgets that will enable the Council to fulfil its legal obligations. Resource implications are contained throughout the report.

Introduction

1. The draft Capital Programme for 2008/09 was first presented to the Executive on 4th December and to the Overview and Scrutiny Committees for consideration during January.

2007/2008 Capital Programme

2. The original 2007/2008 Programme totalled 5,389,700, with the approved slippage of 1,425,000 increasing this to 6,683,300. During the year, various forms of partnership and external funding have been obtained to undertake additional capital works. It is necessary for the Programme to be increased to reflect this because Waverley is responsible for accounting for the expenditure. The additional amounts included are: Draft 2008/2009 Capital Programme 3. The draft 2008/2009 Capital Programme is based on the three-year Capital Projection as agreed within the existing Financial Strategy. It also includes any planned slippage from 2007/2008 where this is likely to occur. An indication of the likely slippage was identified in the recent Budget Monitoring report.

4. The proposed 2008/2009 Capital Programme as reported to the Executive in December amounted to 4.6million. In total, this figure was broadly equivalent to the base-level Programme as provided for within the Financial Strategy plus planned slippage of 2.5million. The draft 2008/2009 Programme as attached at Annexe 1 now includes: 300,000 for The Farnham Park SPA Avoidance Strategy works to be funded by Section 106 agreements; and The Museum of Farnham Garden Gallery Project at 470,000, comprising 56,500 slippage from 2007/2008 and 413,500 partnership Funding. Council has previously approved both schemes. The 2008/2009 Programme now totals 5.4million. The remaining difference is accounted for by adjustments to the Information Technology Programme, as detailed below.

5. The Information Technology (IT) programme is in accordance with Waverley’s statement under the Implementing Electronic Government Initiative (IEG). The total IT Programme now proposed is within the resource target of 400,000, as the Building Control and Land Charge Schemes totalling 65,000 will be met from Revenue. Movement within the IT Programme includes: the AS400 Replacement of 50,000 and Network Upgrade of 20,000 being rescheduled to 2009/2010; and a 15,000 saving on Telephony-Call Recording, with the project being fully completed within the 2007/2008 budget.

6. Members are reminded that the Council’s approved capital priorities are (in order):
1. Health and Safety
2. Disabled Facilities Grant
3. Disabled Discrimination Act (DDA) Schemes
4. Schemes that deliver the Leisure Strategy
5. Schemes that maintain an income stream or reduce revenue costs
6. Maintaining the Council’s assets
7. Maintaining services
8. Electronic Government initiatives to improve customer service
9. Farnham Maltings grant
10. Partnership funding and other service developments Three-Year Capital Programme

7. The new three-year Capital Programme includes the year 2010/2011 and schemes proposed for that year accord with Waverley’s Capital Strategy. Where appropriate, slippage from previous years has been included within 2009/2010.

8. The proposed Weyhill Car Park Scheme has been included within the Capital Programme since 2005/2006, to be financed by prudential borrowing. This has been delayed due to uncertainty with the adjoining Surrey CC scheme, which will not now be progressed. The Weyhill Car Park works are now rescheduled for 2009/2010, with the estimated scheme cost increased to 800,000. A feasibility study will be undertaken and the scheme is included on the basis that the 800,000 funding would be met from prudential borrowing.

Observations from Overview and Scrutiny Committees The following observations are those of the Overview and Scrutiny Committees: 9. Corporate

RESOLVED that the Draft Capital Programme for 2008/2009 be noted and that the following observation be forwarded to the Executive:-
10. Community

11. Environments and Leisure

Resources Available 2008/2009

12. As shown at Annexe 2, resources are available to finance the draft 2008/09 Capital Programme. Projected resources also cover the full three-year Capital Programme to 31st March 2011.

Revenue Reserve Fund

13. Detailed projections for the Revenue Reserve Fund are shown within the Revenue Estimates report at Appendix C.2.


Prudential Borrowing

14. Prudential Borrowing is currently provided for within the Financial Strategy during 2008/2009 and 2009/2010 and this has been allowed for within the resources statement. This relates to Weyhill Car Park and Godalming Leisure Centre. In practice, the decision to undertake Prudential Borrowing will be subject to revision nearer the time, taking account of prevailing interest rates, income streams and the extent of internal funding available.

15. Appendix F - Leisure Procurement Strategy outlines the possibility of investing resources in improved facilities. If Council agrees to this, the capital programme will be amended accordingly.

Conclusion

16. The financing proposals at Annexe 2 show that the Programme as now submitted for approval can now be met from the increased resources available for the three years 2008/2009 to 2010/11.

17. The Programme will be subject to final approval by Council on 19th February.

Recommendation

It is recommended that the Executive recommend that Council:

1. approves the 2008/09 General Fund Capital Programme as shown at Annexe 1;
2. approves the amendments to the 2007/2008 General Fund Capital Programme as shown in the ‘2007/2008 Total Programme’ column at Annexe 1;
3. agrees the financing proposals in accordance at Annexe 2; and
4. adjusts the capital programme if the Executive agree to improved Leisure Facilities spending as outlined in Appendix F; and
5. amends the Financial Strategy to reflect the above decisions.

Background Papers (DoR)

Waverley’s Implementing Electronic Government Statement.

CONTACT OFFICER:

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



G:\bureau\comms\executive\2007-08\255 cap.doc