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Meeting of the Corporate Overview and Scrutiny Committee held on 23/01/2006
Capital Programme 2006/2007


APPENDIX B.3
Waverley Borough Council

coRPORATE overview and scrutiny committee – 23RD january 2006


Title:
FINANCIAL STRATEGY 2006/2007- 2008/2009
DRAFT GENERAL FUND - CAPITAL PROGRAMME 2006/2007
[Wards Affected: All]
Summary and purpose:

The report puts forward revised proposals for the draft 2006/2007 Capital Programme in respect of the General Fund services for consideration by the Overview and Scrutiny Committees during January. Observations will be reported to the Executive on 7th February, with final approval of the Capital Programme being determined by Council on 21st February.

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. Proposals for the 2006/2007 – 2008/2009 Capital Programme were presented to the Executive on 6th December 2005. These proposals totalled some £4.7m in 2006/2007 compared with the guideline of £3.1m contained within the updated Financial Strategy. Therefore, the Executive requested the Officers to advise its meeting on 10th January which priority schemes should be programmed for 2006/2007 and to advise further on the resources that are likely to be available.

2. In order that information is available to the Committee as early as possible, this report is based on the suggestions made by the Chief Officer Group, as submitted for consideration by the Executive on 10th January. The recommendations from the Executive on 10th are set out at Appendix B.1 and should be referred to when considering this item.

Draft 2006/2007 Capital Programme

3. The Chief Officer Group has reconsidered the capital bids and reduced, re-phased or removed amounts scheduled for 2006/2007. The revised draft Capital Programme is attached at Annexe 1.

Summary of Changes

4. The following table summarises changes proposed since the draft Programme was considered by the Committee in November.

SUMMARY OF REDUCTIONS TO 2006/2007 PROGRAMME£
Private Sector Renewals Grants - reduced25,000
Electronic Government for Customer Service – restricted to £400,00065,000
Council Chamber & Committee Room 1 - deleted40,000
Central Offices Air Conditioning - deleted15,000
Planning Delivery Grant funded expenditure – reduced in line with grant40,000
Contaminated Land - reduced10,000
Licensing of Houses in Multiple Occupation – Met by revenue income25,000
Pavilions Repairs Programme - reduced20,000
Recreational Facilities for Young People- reduced30,000
Cemeteries Headstone Risk Assessment – part re-phased to 2007/820,000
Total Movement since November meeting£290,000

Three-Year Capital Programme

5. The proposals for 2007/2008 and 2008/2009 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. Resources Available 2006/2007

6. The Chief Officer Group has examined the resources that could reasonably be made available to finance the Capital Programme in 2006/2007 beyond the 3.1 million already agreed within the updated financial strategy.

7. The draft Programme includes a total of £817,000 towards Godalming Leisure Centre Improvements, of which £654,000 is scheduled for 2006/2007. Enabling this scheme to be undertaken in full is the highest leisure priority for the people of Godalming, who will receive immediate benefit from the improved facilities. In 2004/2005 the Council set aside £500,000 from capital receipts to establish a fund to help finance a future new Godalming Leisure Centre. By 2006/2007 this will have increased to £550,000 through the generation of interest. The Chief Officer Group consider that it will be appropriate to respond to the current capital requirement by using the Godalming Leisure Fund to finance the substantial amount of works proposed to be undertaken at Godalming Leisure Centre in 2006/2007. This will not in itself delay the construction of a new centre. The amount in the Fund represents approximately 5% of that required for a new leisure centre. It is considered essential to maintain the existing centre as a vibrant facility in order to establish a strong customer base for any eventual new centre.

8. In 2001 Waverley committed to provide £750,000 to the Farnham Maltings as its share of partnership funding. The draft 2006/2007 Programme contains £217,000 to cover a further phase of this work. As in previous years, it is suggested that this amount be provided from the Revenue Reserve Fund as an addition to the normal level of funding towards the Capital Programme.

9. As detailed in the General Fund Revenue Budget report at Appendix B.2, it is likely that an improvement of some £200,000 pa could be achieved from the figure currently included for Housing Benefit Subsidy. It is suggested that this could be used to help bridge the shortfall in capital financing by reducing or eliminating the £250,000 contribution currently made from the Revenue Reserve Fund to support revenue expenditure. A higher level of funding for the Capital Programme would therefore be available from the Revenue Reserve Fund.

Conclusion

10. After taking account of the reductions to the Programme suggested by the Chief Officer Group and the financing proposals detailed above the shortfall for 2006/2007 would reduce to £336,000 as shown at Annexe 2.

11. Further funding options could include one-off use of the Insurance Fund, higher use of the Revenue Reserve Fund, or Prudential Borrowing for appropriate schemes. The Chief Officer Group will examine these options in detail during January and report further to the Executive on 7th February.

12. Alternatively, it may be possible to make further reductions to the Programme.

13. The views of this Committee will be reported to the Executive on 7th February with final approval determined by Council on 21st February.

Recommendation

It is recommended that the Committee inform the Executive of its views on the draft Capital Programme for 2006/2007.


Background Papers (DoF)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.
___________________________________________________________________
CONTACT OFFICER:

Name: Brian Long Telephone: 01483 523253

E-mail: blong@waverley.gov.uk

comms/o&s1/2005-06/043