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Agenda Item No.

 

THE VALE OF GLAMORGAN COUNCIL

 

CABINET: 12TH JANUARY 2015

 

REFERENCE FROM SCRUTINY COMMITTEE (CORPORATE RESOURCES): 9TH DECEMBER 2014

 

 

“ INITIAL CAPITAL PROGRAMME PROPOSALS FOR 2015/16 (MD) –

 

 

Set out at Appendix A to the report were full details of the progress on the Capital Programme as at 30th September 2014. 

 

The following adjustments had been requested to the Capital Programme 2014/15 in respect of the following matters:

 

Director of Learning and Skills

 

Fire Precaution Works - Additional works on Bryn Hafren acoustic ceilings have been required urgently for Health and Safety reasons and caused this budget to be approximately £6,000 overspent.  It had been requested that a virement of £6,000 was made from the Fairfield Replacement Flat Roof budget, which had a budget of £260,000 and was expected to outturn at £254,000.

 

Bryn Hafren Replacement Boiler - Projected outturn on this budget was £46,000 against a budget of £27,000, it had been requested that a virement of £12,000 was made from the Barry Comprehensive Replacement Boiler scheme and a further virement of £7,000 is made from the Ysgol St Curig Re-roofing and replacing defective timbers scheme.

 

21st Century Schools Investment Strategy - Amendments had been requested for the following schemes:

 

Ysgol Nant Talwg - It had been requested to bring forward £7,000 from 2015/16 to 2014/15 and to increase the overall scheme budget by £2,000 in 2014/15, to be funded by an additional contribution from the School Investment Strategy Reserve. The amended budget was set out in the table below:

 

 

 

  2013/14

£000's

2014/15

£000's

2015/16

£000's

Total

£000's

 Vale of Glamorgan Council  0  1,338   32  1,370
 WG Funding  1,131  238  0  1,369
 Vale of Glamorgan Council Slippage  0  27  0  27
 Total Ysgol Nant Talwg  1,131  1,603 32 2,766 


Ysgol Dewi Sant  - The spend profile had been reviewed for this scheme and it had been requested that £700,000 was carried from 2014/15 to 2015/16 and £35,000 is brought forward from 2016/17 to 2015/16.  The amended budget was set out in the table below:

 

  2014/15

£000's

2015/16

£000's

2016/17

£000's

Total

£000's

 Vale of Glamorgan Council  134 929  35  1,098 
 WG Funding  989 652  1,641 
 Vale of Glamorgan Council Slippage  22 22 
 Total Ysgol Dewi Sant  1,145 1,581  35  2,761 


 

 

 

Barry Cluster - Ysgol Gwaun Y Nant and Oakfield - The spend profile against this scheme had been reviewed and it had been requested that there is a reduction in the 2014/15 budget of £1.412m and to carry forward this sum to 2015/16.  It had also been requested that £398,000 is brought forward from 2016/17 to 2015/16. An adjustment to reduce the remaining budget in 2016/17 by £55,000 to £47,000 and was required to correct the overall budget figure.  The amended budget was set out below:

 

2014/15

£000's

 

2015/16

£000's

 

2016/17

£000's

 

 Total

£000's

Vale of Glamorgan Council 443 1,430 47  1,920
WG Funding 745 980  0 1,725
Vale of Glamorgan Council Slippage 147 0 0 147 
Total Ysgol Dewi Sant 1,335 1,410 47  3,792


Llantwit Learning Community (LLC) - It had been requested that the overall budget for this scheme is reduced to £19.750m following Welsh Government approval of the amended Strategic Outline Case (SOC).  The scheme had been reprofiled and had also been requested to bring forward £474,000 into 2014/15, in line with the financial profile to be submitted to Welsh Government as part of the Full Business Case (FBC).  The amended budget was set out below:

 

 

   2014/15

£000's

 2015/16

£000's

 2016/17

£000's

 2017/18

£000's

 2018/19

£000's

 Total

£000's

 Vale of Glamorgan Council  474 2,931  7,439 115  29  10,988 
 WG Funding  0 2,674  4,963  1,125  8,762 
 Total LLC  474 5,605  12,402  1,240  29 

19,750 



 Additional Capital Schemes - It had been requested that the following schemes totalling £800,000 were included in the 2014/15 Capital Programme to be funded from an additional revenue contribution.

 

• Llandough Playground £20,000

• Bro Morgannwg Flat Roof £80,000 

• Llangan Demountable £350,000

• Llanfair Demountable £350,000.

 

 

Director of Social Services

 

Client Record System -It had been requested that £400,000 funding is carried forward to 2015/16 for a new Social Services Client Record System.  A national exercise was underway to identify one supplier of a social care and community health service record system.  The Council was an interested party in this exercise and would not be looking to change the current supplier until this exercise was completed.  The awarding of the national contract was now delayed until the end of 2014 therefore, this funding was unlikely to be utilised in the current financial year.

 

Director of Visible Services and Housing

 

Vehicle Replacement Programme - It had been requested to carry forward £952,000 to 2015/16 and £738,000 to 2016/17, reducing the total budget in the 2014/15 programme to £1.082m.  The Vehicle Replacement programme would be reviewed as a result of the outcome of the Transport Review prior to the Final Budget Proposals being submitted in February 2015.

 

It had been requested that the following schemes totalling £1m be included in the 2014/15 Capital Programme to be funded from an additional revenue contribution 

 

• Public Conveniences Refurbishment - £100,000

• Penarth Esplanade/Cliff Road Improvements £450,000

• Highways Improvements £250,000

• Parks Refurbishment £200,000.

 

 

Director of Development Services

 

Penarth Esplanade Feasibility - It had been requested that there is a carry forward of budget for the Penarth Esplanade Feasibility scheme of £50,000 to 2015/16 and £50,000 to 2016/17. Progress on this scheme had not been feasible in 2014/15 due to other priorities and commitments.

 

Ashpath Footpath Improvements - It had been requested to carry forward funding of £72,000 to the 2015/16 Capital Programme as the implementation of the full programme had been delayed due to land issues.  The remaining £28,000 would be retained in 2014/15 to enable a scheme to resolve the flooding issue to be implemented.  A bid for improvements to the footpath had been resubmitted as part of the Initial Capital Programme proposals to request that £100,000 for the footpath widening, for improved security and to improve the cycle path is available in 2015/16.

 

Rural Integrated Transport Initiative - Cabinet on 12th May 2014 (Minute C2330), agreed to accept £100,000 of grant funding for a WG Pilot Transport Project for Rural Integrated Transport.  It had been requested to increase the 2014/15 Capital Programme by £100,000.

 

S106 Funded Schemes -  An increase of £346,000 in 2014/15 and £350,000 in 2015/16 has been requested to be funded by S106 contributions as outlined below:  

 

• Cogan Hall Farm - Dinas Powys to Cosmeston Cycleway Link £150,000 in total, with £15,000 in 2014/15 and £135,000 in 2015/16.

• Plassey Street / Glebe Street Zebra Crossing £30,000 in 2014/15.

• Plassey Street / High Street Zebra Crossing £20,000 in 2014/15.

• Windsor Road / Plassey Street Roundabout Junction Enhancements £100,000 in 2014/15.

• Windsor Street / Pill Street Dedicated Right Hand Turn £110,000 in 2014/15

• Lighting Scheme for Zig Zag Path £100,000 in total, £25,000 in 2014/15 and £75,000 in 2015/16.

• Pedestrian Crossing across Ffordd Y Millennium and Improved Bus Access £69,000 in total, with £17,000 in 2014/15 and £52,000 in 2015/16.

• Pedestrian Crossing across Thompson Street/Holton Road £24,000 in total, with £6,000 in 2014/15 and £18,000 in 2015/16.

• Pedestrian Access Buttrills Road / Holton Road £93,000 in total, with £23,000 in 2014/15 and £70,000 in 2015/16.

 

 

Renewal Area - A carry forward of £496,000 from the 2014/15 Capital Programme to 2015/16 has been requested for the following schemes; £70,000 Holton Road Phase 1, Holton Road Phase 2 £155,000, Holton Road Phase 3 £105,000 and Holton Road Phase 4 £125,000.  Holton Road Phase 1 has now been tendered, Phase 2 of the scheme is currently out to tender and phases 3 and 4 will be tendered by January. The following amounts will be carried forward to 2015/16 to allow 12 month retentions to be paid against the schemes Castleland Renewal £9,000 Area Phase 3E, Castleland Renewal Area 4A £20,000 and Castleland Renewal Area Phase 4B £12,000.

 

It had been requested that a scheme for Barry Island Enhancements Phase 2 Works totalling £300,000 is included in the 2014/15 Capital Programme to be funded from an additional revenue contribution.

 

Director of Resources

 

Space Project - A carry forward of £1.178m to the 2015/16 Capital Programme had been requested for the Space Project to align the programme more closely with the expiry of leases on Council buildings.

 

Cabinet had previously agreed that further information would be provided where schemes had a value of over £500,000 and showed a variance of 20% or more between actual spend and the profile.  The following schemes met this criteria: 

 

• Ysgol Dewi Sant - Budget amendment has been requested, reducing planned expenditure in 2014/15 by £700,000.

• Ysgol Barry Cluster- Gwaun Y Nant and Oakfield - A budget amendment has been requested, reducing planned expenditure in 2014/15 by £1.412m.

• WHQS Works- As noted in the previous monitoring report there was likely to be a variance in the WHQS expenditure as the extent of the works required in a property is not known until the works commence.  Less has been spent than was projected for Rewire schemes, Kitchen Replacements, Bathroom works and schemes in Non Traditional Properties.  More had been spent than was projected for Central Heating works and General Improvement schemes, the total budget was unaffected.  The allocation of the WHQS budget would be reviewed as part of the forthcoming Housing Business Plan.

• Local Road Network Improvements - As noted in the previous monitoring this scheme had been subject to delay this financial year however a further £791,000 had been spent in October 2014 which will bring expenditure in line with budget profile.

• Disabled Facilities Grants - As detailed in previous monitoring there was a variance between profiled budget and actual because the profiled budget has been based on historical patterns of spend.  Changes made to processes within the service for 2014/15 had led to a more consistent pattern of approvals and spend throughout the financial year.  This budget will be monitored closely to ensure that overall expenditure remains within the available funding.

 

 

The Welsh Government (WG) had announced the provisional 2015/16 General Capital Funding, on 8th October 2014.  The 2015/16 capital settlement represented a £62,000 decrease on 2014/15 Final Settlement which equated to a 1% cut.  There was no indication of the level of funding likely beyond 2015/16 therefore, in line with the approach set out in the Medium Term Financial Plan, the proposals assumed a reduction of 10% each year of the programme from 2016/17.  This had been reflected in the proposed Capital Programme between 2015/16 to 2019/20 which was set out in Appendix B to the report.  In line with the financial strategy, the Council would mitigate the deteriorating situation by looking to progress only those schemes which were deemed to be a key corporate priority, whilst also seeking to gain assurance that such schemes were delivered on time and within budget. 

 

In regard to the Major Repairs Allowance (MRA), which was a grant that provided capital funding to the HRA 2015/16, this had not been announced by the WG.  Cabinet would be advised once the announcement had been made, however, an assumption had been made which was set out in Appendix B to the report that the grant would continue at the current allocation of £2.8m in 2015/16 and throughout the period of the Capital Programme.  The actual MRA in 2014/15 was £2.76m and this revised figure would be reflected in the Final Capital Programme in February 2015. 

 

In addition to external funding, the Council would finance part of the Capital Programme from its own resources e.g. capital receipts and reserves.  Set out in the table below were details of the General Capital Funding and internal resources required to fund the proposed schemes:

 

 

Analysis of Net Funding Required for the Indicative 2015/16 Capital Programme
 GENERAL FUND  £’000  £’000
 Welsh Government Resources    
 Supported Borrowing  3,398  
 General Capital Grant  2,068  
     5,466
 Council Resources    
 Capital Receipts  2,260  
 Reserves/Leasing  9,920  
 Unsupported Borrowing  2,074  
     14,254
 Net Capital Resources    19,720
 HOUSING REVENUE ACCOUNT  £’000  £’000
 Housing Reserves  4,141  
 Housing Capital Receipts  0  
 Housing Unsupported Borrowing  11,292  
 Net Capital Resources    15,433


 The indicative 2015/16 Capital Programme set out in Appendix D included allocations already approved by Council and also reflected the amendments requested within the report under consideration. 

 

Capital bids were invited for return by 30th September 2014 and the number of bids received was low (1 from Social Services, 11 from Visible Services and 6 from Development Services).  Departments were requested to rank their own bids in order or importance before submission and bids from each department were forwarded to the Corporate Asset Management Group (CAMG).

 

The Cabinet Budget Working Group had prioritised bids based upon the recommendations of the CAMG that used the criteria set out by the Budget Strategy and met the Corporate Risk Assessment.  Only those schemes assessed as a corporate priority 1 or higher and medium risk or higher where included in the proposals.  The bids that did not meet these criteria or were excluded from consideration because funding had already been allocated as part of the current Capital Programme were set out in Appendix C to the report with the reason for their exclusion. 

 

Submitted as part of the capital bids were the following two bids.  These bids had been resubmitted to request that funding be made available in future years because the existing budget would not be contractually committed at the end of 2014/15 viz: 

• Ashpath Footpath Improvements - There have been delays on implementation of the full scheme due to land issues.  In 2014/15, it was proposed that a scheme intended to resolve the flooding issues that will cost £28,000 be implemented. The bid for improvement to the footpath has been resubmitted as part of the Initial Capital Programme for 2015/16 and in addition to the £72,000 carried forward it was requested that an additional £28,000 be made available for footpath widening, improved security and improvements to the cycle path.  This increased cost would be funded by an additional contribution from Capital Receipts.

• Penarth Esplanade Feasibility - The purpose of this scheme was to consider options for physical improvements to the Esplanade, given the progress made to date on key developments such as Penarth Pavilion, Beachcliff and the Town Plan.  Due to other priorities and commitments progress on the scheme had not been feasible in 2014/15.  It was requested that £50,000 funding be carried forward from 2014/15 to 2015/16 and a further £50,000 be carried forward from 2015/16 to 2016/17.

 

 

Within the Resources Capital Programme was £300,000 each year to be used to fund ICT Capital Projects.  In 2015/16 it was proposed that £250,000 of this sum would be allocated as follows: 

• Unix Infrastructure Infrastructure Refresh £250,000 - The current Solaris estate is 7 years old and is end-of-life.  The Council currently had in the region of 40 Unix servers.  This scheme would include the procurement and replacement of servers, to consolidate where appropriate and to reduce ongoing cooling, power and maintenance costs.

 

As part of the Transport Review, the use of vehicles by the Council had been extensively reviewed, this had meant that the purchase of new vehicles under the scheme had been delayed.  In addition to the level of expenditure for the scheme has been amended in the Capital Programme to amend the continuing need to replace vehicles across the Council, the proposed revised expenditure was set out in the below table:

 

 

2014/15

£000's

2015/16

£000's

2016/17

£000's

2017/18

£000's

2018/19

£000's

2019/20

£000's

 Original Expenditure  2,772  1,189  509  128  0  0
 Revised Expenditure  1,082  2,141  1,596  694  1,818  962


The level of funding of this expenditure would be reviewed as a result of the outcome of the Transport Review and the amended proposals would be brought as part of the final budget proposals in February 2015.  In addition to bids meeting the criteria for inclusion in the Capital Programme, there had been a number of changes approved by Cabinet since the final budget proposals 2014/15 to 2018/19 in February 2014 that had an impact on the Capital Programme.  These changes included capital sums carried forward; changes to the School Investment Programme and Housing Improvement Plan which were set out in paragraphs 34 to 47 of the report. 

 

The level of and financing of this expenditure would be reviewed as a result of the outcome of the Transport review and the amended proposals would be brought as part of the Final Budget Proposals in February 2015.

 

Cabinet on 28th July 2014 (Minute C2419) agreed the inclusion of £418,000 in 2015/16 and £249,000 in 2016/17 for the Tackling Poverty Grant.  It had also been approved that in 2015/16 £116,000 and 2016/17 £40,000 of Barry Regeneration Project Development Fund would be utilised as match funding for the Grant.  In addition S106 contributions of £60,000 in 2015/16 and £86,000 in 2016/17 would also be utilised for the project.  These contributions were reflected in Appendix B to the report.

 

In addition to bids meeting the criteria for inclusion in the Capital Programme, there had been a number of changes approved by Cabinet since the final budget proposals 2014/15 to 2018/19 in February, 2014 that had an impact on the Capital Programme.  These changes included capital sums carried forward; changes to the School Investment Programme and Housing Improvement Plan and related to the undermentioned matters.

 

The 21st Century Schools Programme first tranche of schemes under Band A of the funding were submitted prior to November 2011.  Band A schemes ran between 2013/14 and 2018/19.  Band B schemes were expected to commence in 2019/20.

 

The schemes included under Band A submission for construction between 2013/14 and 2018/19 were: Ysgol Nant Talwg, Ysgol Dewi Sant, Ysgol Gwaun Y Nant and Oakfield, Colcot and Llantwit Learning Community.

 

In April 2014, WG notified the Council that some of the funding for Band A of the 21st Century Schools Programme would be in the form of unsupported borrowing instead of a revenue grant.   The Council would be expected to borrow; however, WG would provide revenue funding to cover the cost of the loan.  In 2014/15 this would be via a specific grant and from 2015/16 the funding would be distributed through the Revenue Support Grant.  This had no impact on the value of the Capital Programme, only the way in which it was funded.  The table below shows the sums to be borrowed between 2014/15 and 2016/17 and the corresponding borrowing costs provided by WG.

 

 

 Period

 Loan Value/Sum Invested £

Loan Charges Funded by WG £ 

 2014/15

 923,252

 53,651

 2015/16

 1,187,038

 68,980

 2016/17

 527,573

 30,658

 TOTAL

 2,637,863

 153,289



 In September 2014 the Vale of Glamorgan Council received notification from WG that the funding envelope for 21st Century Schools was increased from £20.960m to £29.8985m.  The increase approved represented an increased contribution of £3.017m to £13.4965m from the WG.  This increase represented additional funding required to allow the proposed Llantwit Learning Community project to proceed.

 

Following discussion with WG, it was proposed that the funding split for the Colcot scheme and Llantwit Learning Community be amended, increasing the Vale of Glamorgan Council’s contribution by £250,000 and reducing the WG contribution to £0,000 for the Colcot scheme.  A corresponding adjustment against the Llantwit Learning Community was proposed to increase the WG contribution by £250,000 and reduce the contribution made by the Vale of Glamorgan Council by £250,000. This amendment was being made because the 21st  Century Schools Grant required the schemes to meet BREEAM (British Research Establishment Environmental Assessment Method) standards and this was not considered to be cost effective for the size of the Colcot scheme.

 

The following table showed the planned spend on the Education Capital Programme from 2014/15 to 2019/20, incorporating expenditure under Band A schemes funded under 21st Century Schools Programme.  Gross Expenditure totalled £63.522m.

 

 

14/15

£000's

15/16

£000's

16/17

£000's

17/18

£000's

18/19

£000's

19/20

£000's

Total

£000's

 Penarth Learning Community  12,397  4,680  0  0   0  0  17,077
 Demolition of Ysgol Maes Dyfan  200  0  0  0  0  0  200
 Ysgol Nant Talwg (£1131k 13/14)  1,576  32  0  0  0  0  1,608
 Ysgol Nant Talwg Slippage  27  0  0  0  0  0  27
 Ysgol Dewi Sant  1,123  1,582  35  0  0  0  2,740
 Slippage Ysgol Dewi Sant  22  0  0  0  0  0  22
 Llantwit Learning Community  474  5,605  12,402  1,240  29  0  19,750
 Gwaun Y Nant & Oakfield  1,188  2,410  47  0  0  0  3,645
 Gwaun Y Nant & Oakfield  147  0  0  0  0  0  147
 Colcot  0  0  250  250  0  0  500
 Barry Comp. Art Block  315  10  0  0  0  0  325
 School Investment Programme  0  500  0  0  0  0  500
 Modular Building Resiting  0  500  0  0  0  0  500
 Asset Renewal  900  900  1,000  1,000  1,000  1,000  5,800
 Asset Renewal Contingency  65  50  50  50  50  50  315
 Llanfair S106  81  0  0  0  0  0  81
 Rhoose S106  0  1,000  1,762  0  0  0  2,762
 Llangan Classroom Base  0  117  0  0  0  0  117
 Victorian Schools  600  1,200  1,200  800  0  0  3,800
 Schools ICT Loans  200  200  200  200  200  200  1,200
 Property Condition Surveys  40  40  0  0  0  0  80
 Schools Capital Loan Schemes  300  300  300  300  300  300  1,800
 Other  526  0  0  0  0  0  526
 Total  20,181  19,126  17,246  3,840  1,579  1,550  63,522


 

 

The above information included an additional £3.2m  between 2015/16 and 2017/18 over and above the £600,000 already allocated in 2014/15 Capital Programme to support works across 22 Victorian Schools to address the existing issues with lath and plaster and masonry deterioration.  Work was currently being carried out by Property Section to assess the situation and a full report would be brought to Cabinet with a strategy to address these problems.

 

 

In addition, following an analysis of asset renewal spend on schools in recent years it had been noted that actual required funding was around £1m each year rather than the £600,000 budgeted.  The annual allocation had therefore been increased to £1m per annum from 2016/17.  This additional contribution would be funded from the School Investment Strategy reserve.  A further £500,000 had also been included in the 2015/16 Capital Programme to be used to resite and renew the modular building used for the current Ysgol Dewi Sant.  This additional contribution would be funded from the School Investment Strategy reserve.

 

The Education Capital Programme was funded as follows:

 

By Funding Source

14/15

£000's

15/16

£000's

16/17

£000's

17/18

£000's

18/19

£000's

19/20

£000's

Total

£000's

General Capital Funding 2,972 2,512 4,593 890 679 650 12,296
Capital Receipts 3,661 600 4,526 800 0 0 9,587
Other Reserves and Revenue Contribution 1,025 0 0 0 0 0 1,025
School Investment Reserve 1,472 3,411 1,302 525 400 400 7,511
School Rationalisation and Improvements Reserve 300 300 300 300 300 300 1,800
IT Fund 200 200 200 200 200 200 1,200
Prudential Borrowing 3,370 2,074 0 0 0 0 5,444
Prudential Borrowing Pending Receipts 2,000 0 0 0 0 0 2,000
Total Internal Funding 15,000 9,097 10,921 2,715 1,579 1,550 40,863
Other Councils Contributions 0 1,330 0 0 0 0 1,330
S106 Agreements 829 1,117 1,362 0 0 0 3,308
Welsh Government Grant 4,352 7,582 4,963 1,125 0 0 18,022
Total Funding 20,181 19,126 17,246 3,840 1,579 1,550 63,522


 Band B Funding under the 21st Century Schools Programme was due to start in 2019/20.  This analysis assumed the Council schemes would not commence until 2020/21 as the schemes were not yet approved.  The Council would need to consider what schemes were likely to be included in the Band B School Investment Programme to address growing pressures within Vale of Glamorgan schools.  These pressures included but were not limited to the following:

 

 

• Consideration of a possible Co-education school at Secondary level in Barry.

• Increase in demand for Welsh Medium places at Primary and Secondary level across Penarth, Barry and Rural Vale Clusters.

• Increase in demand for English Medium places in the Penarth area.

• Increase in demand for English and Welsh Medium places as a result of existing development schemes and new schemes proposed in the Local Development Plan.

• The need to amalgamate and federate schools to strengthen performance, foster cohesion and support among schools and release efficiencies.

 

 

The projected cost of schemes under Band B was £38m, which it was assumed would be funded as follows: £19m WG Grant contribution at 50%, £4.9m General Capital Funding, £6.7m Capital Receipts, £0.7m School Investment Strategy reserve, £6.7m S106 Contributions.

 

In order to fund the additional contributions for Asset Renewal, Band B schemes and Victorian Schools strategy, it was proposed that the School Investment Strategy Reserve be increased by £3.5m identified from unearmarking other specific reserves.

 

In terms of the new Housing Improvement Plan, this was due to be submitted to Cabinet for approval in December 2014.  The recommendations of the amended Plan would be reflected in the Final Capital Proposals when they are brought to Cabinet in February 2015.

 

The capital funded from revenue (CERA) for the current Housing Improvement Plan was £4.141m, an increase of £933,000 on the £3.208m currently reflected in the Capital Programme.  The 2015/16 Capital Programme had been amended to reflect an increased revenue contribution of £4.141m in 2015/16 and reduced Prudential Borrowing of £11.293m, pending the amended Programme in December 2014.

 

As in the case of the consideration of the Initial Revenue Budget Proposals, similar arrangements were in place for the Scrutiny Committees to pass their comments to the Scrutiny Committee (Corporate Resources) who would, on behalf of the Council’s Scrutiny Committees, formally respond to the Cabinet by no later than 16th December 2014.  However, Scrutiny Committees were being asked to first consider the indicative Capital Proposals as set out in Appendix B to the report.  If a change to the initial proposals was desired, the Scrutiny Committee was required to provide a reason for this need in order to assist the Cabinet and the CBWG in their deliberations when drawing up the final proposals.  The total net capital expenditure of the proposed programme for the whole of the Council over the five years was approximately £96.144m. 

 

Managers would be asked to revisit the schemes listed in Appendix B and confirm the final cost and spend profiles prior to the final proposals being considered by the Cabinet by no later than 23rd February 2015.  Cabinet’s final Capital Programme proposals would be considered by Council no later than 4th March 2015. 

If the schemes proposed for the whole of Council were approved, the effect on the General Fund usable receipts was as follows:

 

 Capital Receipts

 General

£000's

 Ringfenced Social Services

£000's

 Ringfenced Education

£000's
 Anticipated Balance as at 1st April 2015  8,233  1,225  0
 Anticipated Requirements – 2015/16  (1,660)  0  (600)
 Anticipated Receipts – 2015/16  0  0  1,285
 Balance as at 31st March 2016  6,573  1,225  685
       
 Anticipated Requirements – 2016/17  (5,525)  0  (1,684)
 Anticipated Receipts – 2016/17  0  0  2,500
 Balance as at 31st March 2017  1,048  1,225  1,501
       
 Anticipated Requirements – 2017/18  0  (1,225)  (800)
 Anticipated Receipts – 2017/18  0  0  2,500
 Balance as at 31st March 2018  1,048  0  3,201
       
 Anticipated Requirements – 2018/19  0  0  0
 Anticipated Receipts – 2018/19  0  0  0
 Balance as at 31st March 2019  1,048  0  3,201
       
 Anticipated Requirements – 2019/20  0  0   0
 Anticipated Receipts – 2019/20  0  0  2,800
Balance as at 31st March 2020 1,048  0  6,001
Anticipated Requirements between 2020/21 and 2025/26 0 0  (6,001)
Anticipated Receipts between 2020/21 and 2025/26 0 0 0
Balance as at 31st March 2026 1,048 0 0


 The Education Capital Programme utilised General Receipts in addition to Capital Receipts ringfenced for Education.  The Capital Receipts in 2014/15 from the sale of Gardenhurst had been ringfenced for Social Services capital expenditure.  Options were being explored by the Council, however, it was expected that the full capital receipt of £1.225m would be utilised for Older Persons’ accommodation in 2017/18. 

 

 

In line with the overall strategy and specific suggestions proposed by the BWG, in order to resource the Capital Programme, reserves would be utilised over the period of the Capital Programme 2015/16 to 2019/20.

 

The Project Fund would be used to fund schemes assessed on an Invest to Save basis, and in certain circumstances, business critical schemes may also be funded from this reserve with the prior approval of the Director of Resources, a balance of £2m would be retained as a balance on this fund.  The projected usage of this reserve over the period of the Capital Programme was detailed below:

 

 Project Fund

 

 £'000
 Anticipated Balance as at 1st April 2015  4,244
   
 Anticipated Requirements – 2015/16  (1,684)
 Anticipated Receipts – 2015/16  100
 Balance as at 31st March 2016  2,660
   
 Anticipated Requirements – 2016/17  (400)
 Anticipated Receipts – 2016/17  60
 Balance as at 31st March 2017  2,320
   
 Anticipated Requirements – 2017/18  (100)
 Anticipated Receipts – 2017/18  60
 Balance as at 31st March 2018  2,280
   
 Anticipated Requirements – 2018/19  0
 Anticipated Receipts – 2018/19  0
 Balance as at 31st March 2019  2,280
   
 Anticipated Requirements – 2019/20  0
 Anticipated Receipts – 2019/20  0
 Balance as at 31st March 2020  2,280


 

The above forecast balances needed to be seen in the context of significant pressures for spending which were not yet included in the Capital Programme, these pressures included the backlog of school, highways and building improvements. 

 

Having regard to the above and related issues, it was

 

RECOMMENDED –

 

(1) T H A T the Initial Capital Budget Proposals for 2015/16 be endorsed and that Cabinet be informed of the Scrutiny Committee’s deliberations on the matter.

 

(2) T H A T the following changes to the 2014/15 Capital Programme be noted:

 

• Fire Precaution Works - A virement of funding to the scheme of £6,000 from the budget for Fairfield Replacement Flat Roof.

• Bryn Hafren Replacement Boiler - A virement of £12,000 from Barry Comprehensive Replacement Boiler and a further virement of £7,000 from Ysgol St Curig Re-roofing and replacing defective timbers.

• Rural Integrated Transport Initiative - Increase the 2014/15 Capital Programme by £100,000 for the WG Pilot Transport Project Rural Integrated Transport Initiative.

 

 

(3) T H A T the inclusion of the following capital schemes in 2014/15 Capital Programme, to be funded from an increased revenue contribution, be noted in respect of the following:

 

 

• Llandough Playground - £20,000

• Bro Morgannwg Flat Roof - £80,000

• Public Conveniences Refurbishment - £100,000.

 

 

(4) T H A T the use of Article 13.09 of the Council’s Constitution (Urgent Decision Procedure) to increase the 2014/15 Capital Programme for the following capital schemes to be funded from an increased revenue contribution in 2014/15 and therefore enable officers to carry out the works within the current financial year, be noted:

 

• Llangan Demountable - £350,000

• Llanfair Demountable - £350,000

• Penarth Esplanade / Cliff Road Improvements - £450,000

• Highways Improvements - £250,000

• Parks Refurbishment - £200,000

• Barry Island Enhancements Phase 2 - £300,000.

 

 

(5) T H A T the following changes to the 2014/15 and 2015/16 Capital Programmes that required Council approval be noted:

 

• Ysgol Nant Talwg - Increase the 2014/15 budget by £9,000 to £1.603m. Bring forward £7,000 from 2015/16 to 2014/15 and increase the overall scheme budget by £2,000 in 2014/15, to be funded by an additional contribution from the School Investment Strategy reserve.

• Ysgol Dewi Sant - Reduce the 2014/15 budget by £700,000 to £1.145m and carry forward this sum to 2015/16.

• Barry Cluster - Ysgol Gwaun Y Nant and Oakfield - Reduce planned spend in 2014/15 by £1.412m and carry forward this sum to 2015/16.

• Llantwit Learning Community (LLC) - Reduce the overall budget figure to £19.750m and bring forward £474,000 to 2014/15, in line with the financial profile to be submitted to Welsh Government as part of the Full Business Case (FBC).

• Client Record System - Carry forward £400,000 for a new Social Services Client Record System to 2015/16 due to the delay in awarding the national contract.

• Vehicle Replacement Programme - Carry forward £952,000 to 2015/16 and £738,000 to 2016/17, reducing the budget in the 2014/15 Programme to £1.082m.

• Penarth Esplanade - Carry forward funding for Penarth Esplanade scheme to 2015/16 £50,000 and £50,000 to 2016/17.

• Ashpath Footpath Improvements - Carry forward funding £72,000 to the 2015/16 Capital Programme.

• S106 Funded Schemes - Increase the Capital Programme for 2014/15 by £346,000 and £350,000 in 2015/16 for the following schemes to be funded by S106 contributions:

-  Cogan Hall Farm - Dinas Powys to Cosmeston Cycleway Link £150,000 in total, with £15,000 in 2014/15 and £135,000 in 2015/16.

-  Plassey Street / Glebe Street Zebra Crossing £30,000 in 2014/15.

-  Plassey Street / High Street Zebra Crossing £20,000 in 2014/15.

-  Windsor Road / Plassey Street Roundabout Junction Enhancements £100,000 in 2014/15.

-  Windsor Street / Pill Street Dedicated Right Hand Turn £110,000 in 2014/15

-  Lighting Scheme for Zig Zag Path £100,000 in total, with £25,000 in 2014/15 and £75,000 in 2015/16.

-  Pedestrian Crossing across Ffordd Y Millennium and Improved Bus Access £69,000 in total, with £17,000 in 2014/15 and £52,000 in 2015/16.

-  Pedestrian Crossing across Thompson Street / Holton Road £24,000 in total, with £6,000 in 2014/15 and £18,000 in 2015/16.

-  Pedestrian Access Buttrills Road / Holton Road £93,000 in total, with £23,000 in 2014/15 and £70,000 in 2015/16.

• Renewal Area - Carry forward £496,000 from 2014/15 Capital Programme to 2015/16 as follows; £70,000 Holton Road Phase 1, Holton Road Phase 2 £155,000, Holton Road Phase 3 £105,000 and Holton Road Phase 4 £125,000, Castleland Renewal Area Phase 3E £9,000, Castleland Renewal Area 4A £20,000 , and Castleland Renewal Area Phase 4B £12,000.

• Space Project - Carry forward £1.178m funding for the Space Project to 2015/16 Capital Programme.

 

 

(6) T H A T the increased requirement of £2.638m for unsupported borrowing required between 2014/15 and 2016/17, as a result of the Local Government Borrowing Initiative for 21st Century Schools, be noted.

 

Reasons for recommendations

 

(1) To inform Cabinet of the outcome of the scrutiny process on the matter.

 

(2&3) To advise the Scrutiny Committee of the position with regards to the 2014/15 Capital Programme.

 

(4) To make the Committee aware of the position with regard to the 2014/15 Capital Programme and the use of relevant provisions of the Council’s Constitution.

 

(5) To advise the Scrutiny Committee of the position with regards to the 2014/15 Capital Programme.

 

(6) To ensure the Committee was aware of increased unsupported borrowing in the Capital Programme.”

 

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