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THE VALE OF GLAMORGAN COUNCIL

 

CABINET: 11TH JANUARY, 2016

 

REFERENCE FROM SCRUTINY COMMITTEE (CORPORATE RESOURCES): 8TH DECEMBER, 2015

 

"                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 report also addressed the following:

Director of Learning and Skills

Colcot Primary Roof - The roof at Colcot Primary was in need of replacement as the underlying single ply roof was breaking down and causing ongoing leaks. It had been requested that £100k of the 2016/17 Schools Asset Renewal budget was brought forward into 2015/16 to enable the urgent works to the roof to commence this financial year.

 

Modular Building Resiting Ysgol Dewi Sant - Under this existing scheme the former Ysgol Dewi Sant modular building was being resited at Fairfield Primary. A highways planning condition at Fairfield Primary had to be met before the building could be occupied. It had been requested that £200k of the 2016/17 Schools Asset Renewal budget was brought forward into 2015/16 in order for the works to be carried out this financial year.

 

Barry Comprehensive School Works - At Cabinet on 5th October, 2015 (minute C2931) it was resolved "T H A T the development of a programme of work for Barry Comprehensive School be authorised to enable improvements to be made to the learning environment in the short term and that a further report on the proposed programme and estimated funding requirements be presented to Cabinet for further consideration in due course". Whilst a programme of works was still being compiled, it had been requested that up to £1m was made available for these works to be carried out. This would be funded by a contribution from revenue into the School Investment Strategy reserve, as a result of a revenue underspend in 2015/16. Further detail of the specific requirements would be presented to a future Cabinet as per the recommendation of Cabinet on 5th October, 2015 and the Capital Programme would then be amended accordingly.

 

St. Cyres Lower School Marketing and Disposal - A budget of £85k was required for marketing agent's fees and Project Management Unit Fees for the above scheme. It had been requested that the Capital Programme was increased by £20k in 2015/16 and £65k in 2016/17 to be funded from capital receipts. This change would also require approval by Council.

 

Education Asset Renewal Contingency Budget - At Cabinet on 23rd February, 2015, minute number C2650, recommendation 3 stated "THAT the Managing Director or the Head of Finance, in consultation with the Cabinet Member responsible for Finance, be given delegated authority to make additions, deletions or transfers to or from the 2015/16 to 2019/20 Asset Renewal budget as appropriate". This Delegated Authority had been used to allocate £41,900 of the contingency budget to the schemes below: -

 

Romilly Primary School £25,500

Urgent Health and Safety Works £16,400.

 

In order to complete the Urgent Health and Safety Works at various schools, it had been requested that the Urgent Health and Safety Works budget was increased by £4,917, to be funded from a revenue contribution from the Schools budget.

Director of Social Services

Cartref Porthceri Lift Replacement - There was currently a £70k budget allocated for this scheme within the 2015/16 Capital Programme. A survey had confirmed that the lift needed to be refurbished and not replaced. It had been requested that this scheme was renamed "Social Services Lift Refurbishments" and works would be extended to include refurbishment works to lifts in Cartref Porthceri, Southway and Ty Dyfan.

 

Southway Lift Replacement - There was currently a £70k budget allocated for this scheme within the 2015/16 Capital Programme. This lift was now being refurbished as stated above. The call and assistance systems within the four residential homes are in need of replacement and it had been requested that this scheme was renamed "Residential Homes Call and Assistance Systems" for these works to be carried out from this allocation.

Director of Environment and Housing

Weycock Cross to Barry Comprehensive Road Resurfacing - The road between Weycock Cross and Barry Comprehensive School requires resurfacing and it had been requested that the 2015/16 Capital Programme was increased by £40k, to be funded from the Visible Services reserve.

 

Wick to Ewenny Highway Improvements - Highway Improvement works are required between Wick and Ewenny and it had been requested that the 2015/16 Capital Programme was increased by £40k, to be funded from the Visible Services Reserve.

 

Coast Protection and Land Drainage General - £50k had been allocated within this budget for works which are part of the Causeway Improvement Scheme. In order to enable a more co-ordinated approach to the scheme, it had been requested that £50k was vired to the Causeway Improvement Scheme. The budget for this scheme would total £950k.

 

Jenner Park and Colcot Pitches - A grant of £100k had been awarded to the Council from The Sports Council for Wales. The £853k budget for this scheme was currently fully funded from the Jenner Park reserve. It had now been requested that the contribution from the reserve was reduced and the scheme would now be funded by £753k from the reserve and £100k from The Sports Council for Wales grant.

 

Coldbrook Flood Risk Management - Emergency Powers had been used for the inclusion of £2,959k for the construction phase and £257k for the design and development phase into the Capital Programme in order to complete the flood risk management works. This scheme would be funded as detailed below: -

 

Construction Phase

£'000

Design and Development Phase

£'000

WG Grant

2,151

WG Grant

218

ERDF Grant

114

Council Match Funding

39

Natural Resources Wales Grant

302

   

Council Match Funding

392

   

Total

2,959

Total

257

Managing Director and Resources

Penarth Renewal Area - The total estimated spend for the Penarth Renewal area had increased from £100k to £155k, due to the cost of an extra property being added to the contract and also due to unforeseen items of work that were identified during the contract period. A virement of £55k had been requested from the Castleland Renewal Area budget to the Penarth Renewal Area budget.

 

Barry Regeneration Partnership Scheme - At Cabinet on 13th July, 2015, £600k was added to the Capital Programme for the Barry Regeneration Partnership Scheme. £361k of this sum had been allocated using Delegated Authority as set out below:

 

Barry Island: Western Shelter Lighting £50k

Barry Island Interpretation, Tourist Information Centre and WIFI £50k

Victoria Gardens: area improvements (phase 3) £60k

George Street Play Area: resurface pedestrian links £41k

Cowbridge Street/Bridge Street Play Area: refurbishment £50k

Eastern Approach (Cardiff Road): gateway improvements £100k

Business Service Centre Improvements £10k.

 

The £600k was allocated over financial years 2015/16 and 2016/17, it had therefore been requested to re-profile these schemes as set out in the table below: -

 

Scheme

2015/16

£'000

2016/17

£'000

Barry Island: Western Shelter Lighting

8

42

Barry Island Interpretation, Tourist Information Centre and WIFI

35

15

Victoria Gardens: area improvements (phase 3)

0

60

George Street Play Area: resurface pedestrian links

41

0

Cowbridge Street/Bridge Street Play Area: refurbishment

50

0

Eastern Approach (Cardiff Road): gateway improvements

0

100

Business Service Centre Improvements

10

0

 

Further assessment was being undertaken to allocate the remaining balance of £239k to priority schemes.

 

Barry Regeneration Partnership Scheme - It had been approved by delegated authority that £107k of the unallocated original budget in 2015/16 and £34k of the unallocated budget in 2016/17 for this scheme be allocated as follows:-

 

Project Management Unit £60k for 2015/16

Landscape Design Service £25k for 2015/16

Urban Regeneration Service £4k for 2015/16 and £28k for 2016/17

High Street (Springboard) £6k for 2015/16 and £6k for 2016/17

Gladstone Gardens £2k for 2015/16

Main Street Area Improvements £4k for 2015/16

Eastern Approach £6k for 2015/16.

 

Disabled Facilities Grant (DFG) - There was a predicted shortfall in the capital budget for DFGs. It was envisaged that once the backlog of applications had been dealt with the number of applications being processed would reduce to normal throughput levels. However, there had been a steady increase in the number of applications being received which was a trend that was likely to continue. As a result, Emergency Powers had been used to approve an increase of £200k in the 2015/16 DFG budget, funded by a contribution from the Policy revenue budget. This would ensure that there was sufficient funding to complete this year's applications without creating a new backlog.

 

Pedestrian Crossing across Ffordd Y Mileniwm and Improved Bus Access - Further studies had identified that this scheme was not attainable within the budget available; therefore, alternative schemes had been identified through active travel route assessments. It had been requested that this budget was increased by £52k to be funded from s106 monies and that the scheme was renamed "Pedestrian/Cycle improvements at Ffordd Y Mileniwm". The total budget for this scheme would be £69k. Member consultation had been undertaken under the s106 protocol and the contribution needs to be spent by January 2016.

 

Town Hall Library External Repairs - Property Services had reviewed this scheme and the funding was no longer required for external works. Internal works to the Town Hall Library had been identified as part of the Space Project scheme, it had therefore been requested that the budget of £12k was vired to the Space Project scheme.

 

Civic Offices Re-wire Scheme - In 2011 a Property Condition Survey for the Civic Offices identified that the building required re-wiring (to include general lighting, emergency lighting, power and distribution). A fixed electrical installation test was undertaken during 2014/15 and identified that all floors in the building are "Unsatisfactory". £283k had been allocated within the 2015/16 Space Project budget towards this scheme. In order to enable a more co-ordinated approach to the scheme, a virement of £225k in 2015/16 and £58k in 2016/17 had been requested to create a new scheme called the Civic Offices Re-wire.

 

Court Road Contaminated Land Issues - It had been requested that the name of this scheme was changed to "Court Road Depot - Survey, Feasibility and Infrastructure Budget". This would enable the Council to facilitate various surveys and feasibility works for the circa 4 acre depot site and if required, identify and carry out any associated infrastructure works. The budget for this scheme was £350k.

 

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

 

Llantwit Learning Community - Amendments to programming/sequencing of works had resulted in actual expenditure that was less than the initial spend profile. This does not adversely affect the final cost of the project.

Modular Building Resiting Ysgol Dewi Sant - Amendments to programming/ sequencing of works had resulted in actual expenditure that was more than the initial spend profile. This does not adversely affect the final cost of the project.

 

It was proposed that the budget for these schemes was reprofiled for the remainder of the year and changes would be reported as part of the ongoing capital monitoring process.

 

The Council's Capital budget was determined largely by the General Capital Funding Settlement (GCF). In previous years, the provisional GCF settlement was received from Welsh Government (WG) during October, with the final settlement being received during December. This year, however, the initial budget proposals had not yet been received.

 

A statement on the timing of the Welsh Government's Budget for 2016/17 was released by the Minister for Finance and Government Business on 6th October, 2015. It stated that the late timing of the UK Government's Spending Review presented WG with significant challenges for the preparation and publication of the Draft Budget 2016/17. WG would not know their Budget for 2016/17 until 25th November, 2015. WG was facing unprecedented levels of uncertainty and consequently would not publish the Draft Budget for 2016/17 until 8th December, 2015 and the Final Budget on 1st March, 2016.

 

A joint letter dated 26th October, 2015 had been received from the Minister for Public Services and the Leader of the Welsh Local Government Association, outlining the outcome of their joint discussions regarding the timing of the release of the settlement. They provide a timetable which shows that local authorities would be advised of the Provisional Settlement on 9th December, 2015 and of the Final Settlement on 2nd March, 2016, however, the Final Budget would be debated by WG on 9th March, 2016. They consider that the proposed timetable does not result in any legal or financial impediment to the budget process; however, they acknowledge that the timetable does present challenges.

 

As in the case of the earlier report in regard to Initial Revenue Budget proposals considered by the Committee, the timetabled provided by the Minister for Public Services and the Leader of the Welsh Local Government Association indicated that local authorities would be advised of the Provisional Settlement on 9th December, 2015 and of the Final Settlement on 2nd March, 2016, however, the Final Budget will be debated by WG on 9th March, 2016.

 

Even with a lack of clarity on the funding position for 2016/17 and these unprecedented circumstances, in order to be in a position to meet the statutory deadlines and the requirements for consultation set out in the Council's Constitution, much of the work on quantifying the resource requirements for the Capital programme will still need to be carried out before the initial and final GCF settlement was notified to the Council. Therefore, in line with the approach adopted in the current Medium Term Financial Plan, the proposals assume a reduction of 10% for each year of the programme for 2016/17 and onwards. This has been reflected in the proposed Capital Programme 2016/17 to 2020/21 which was shown in the table in Appendix B.

 

In line with the financial strategy, the Council would aim to mitigate the deteriorating situation by looking to progress only those schemes which are deemed to be a key corporate priority, whilst also seeking to gain assurance that such schemes are 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 2016/17, 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 £2.76m in 2016/17 and throughout the period of the Capital Programme.

 

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 are details of the General Capital Funding and internal resources required to fund the proposed schemes:

 

Analysis of Net Funding Required for the Indicative 2016/17 Capital Programme

GENERAL FUND

£'000

£'000

Welsh Government Resources

   

Supported Borrowing

3,058

 

General Capital Grant

1,861

 
   

4,919

Council Resources

   

Capital Receipts

7,199

 

Reserves/Leasing

9,135

 

Unsupported Borrowing

528

 
   

16,862

Net Capital Resources

 

21,781

     

HOUSING REVENUE ACCOUNT

£'000

£'000

Housing Reserves

3,910

 

Housing Unsupported Borrowing

19,434

 

Net Capital Resources

 

23,344

 

The indicative 2016/17 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, 2015 and the number of bids received was low (3 from Learning and Skills, 12 from Social Services, 11 from Environment and Housing and 2 from Managing Director and Resources was). 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) for evaluation.

 

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.

 

Education Capital Loan Scheme - These are internal loans which are initially funded from the School Rationalisation Reserve and schools then made repayments back into the reserve over a number of years. In order to maintain a healthy balance within the reserve, it was proposed that the current yearly allocation of £300k was reduced to £200k between 2016/17 and 2020/21.

 

Llantwit Learning Community - In order to complete this scheme, an additional £650k was required. The increased costs are due to construction inflation, a greater understanding of the works required for parking and the bus turning circle and works required to the drainage, which were identified in a survey. It had been requested that the 2016/17 Capital Programme was increased by £650k, funded from the School Investment Strategy Reserve which had been increased by this amount as a result of a revenue underspend in 2015/16.

 

Rhoose Primary New School - £500k had been ring-fenced for this scheme within the School Investment Strategy Reserve. It was therefore proposed that the Capital Programme was increased by £500k in 2017/18 to include this allocation.

 

Social Services Asset Renewal - The condition of Social Services buildings are deteriorating. To enable the maintenance of these properties, it was proposed that £100k was vired each year from 2016/17 to 2020/21 from the All Services Asset Renewal budget to create a Social Services Asset Renewal budget. Social Services would be able to allocate the funding within year to priority works that are required.

As part of the Transport review the use of vehicles by the Authority had been extensively reviewed, which had meant that the purchase of new vehicles under the scheme had been delayed. In addition, an amendment to the level of expenditure in the Capital Programme was required, to reflect the continuing need to replace vehicles across the Council. The proposed revised expenditure was set out in the table below:

 

 

2015/16

2016/17

2017/18

2018/19

2019/20

2020/21

 

£000's

£000's

£000's

£000's

£000's

£000's

Original Expenditure

2,375

1,596

694

1,818

962

0

Revised Expenditure

2,121

1,453

616

1,338

800

800

 

Vehicles could be funded from the Vehicle Renewals Fund or could be leased. 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 2016.

 

Renewal Area - An award of specific grant funding had been received from WG to enable capital works to be undertaken in the Castleland Renewal Area during 2016/17. It had been requested that £677,981 was included in the 2016/17 Capital Programme for this grant.

 

Disabled Facilities Grants (DFG) - A capital bid amendment form had been submitted to request additional funding in future years for DFGs. This would ensure that there was sufficient funding to complete future years' applications without creating a new backlog. It had been requested that the Capital Programme was increased by £400k in 2016/17 and £450k in 2017/18, to be funded from a reserve set up from revenue underspend in 2015/16.

 

Carbon Management Fund - The Carbon Management Fund Scheme was an ongoing scheme to assist with the Council's energy reduction measures. To enable these works to continue, it had been requested that a budget of £200k was included in the 2016/17 Capital Programme. This would be funded from the Energy Management Fund Reserve.

 

Civic Offices Re-wire - In 2011 a Property Condition Survey for the Civic Offices identified that the building required re-wiring (to include general lighting, emergency lighting, power and distributions. A fixed electrical installation test was undertaken during 2014/15 and identified that all floors in the building are "Unsatisfactory". It had been requested that the 2016/17 Capital Programme was increased by £400k using funding which had already been ring fenced within the Project Fund for these works. A capital bid for the Civic Offices Rewire had also been included in Appendix B.

 

Regeneration Fund - This scheme was funded from the Regeneration reserve. £50k per annum of this budget had been ring-fenced to match fund the Rural Development grant. Expenditure for this grant would now be incurred through revenue and therefore it was proposed that the budget was reduced by £50k each year between 2016/17 and 2020/21 and this use of the reserve would be redirected to the revenue budget.

 

The changes detailed above had been reflected in Appendix B.

 

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 2015/16 to 2019/20 were approved in February 2015. These changes include capital sums carried forward; changes to the School Investment Programme and Housing Improvement Plan. These changes had been included in Appendix B.

School Investment Programme

The 21st Century Schools Programme was the WG's funding initiative for investment in schools. The first tranche of schemes under Band A of the funding were submitted prior to November 2011. Band A schemes run between 2013/14 and 2018/19. Band B schemes are expected to commence in 2019/20.

 

The schemes included under the Band A submission for construction between 2013/14 and 2018/19 are: 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 schemes 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 through the Revenue Support Grant. This had no impact on the value of the Capital Programme, only the way in which it was funded.

 

In September 2014 the Vale of Glamorgan Council received notification from WG that the funding envelope for 21st Century Schools would be increased from £20.960m to £29.898m. As reported in the Final Capital Programme Proposals in February 2015, the Council had increased their contribution to the programme by a further £950k for the Llantwit Major Learning Community Scheme and this was approved by Cabinet on 12th January, 2015 (Minute C2607), therefore, the total funding envelope was now £30.848m. This excluded the £650k for Llantwit Learning Community requested as part of this report.

 

The Band A Programme was progressing well. Phase one of the Penarth Learning Community scheme was complete and the Learning Community was occupied. Works are ongoing for phase two which consists of external works and demolition. Ysgol Nant Talwg and Ysgol Dewi Sant are complete and the schools are occupied. Phase one of Ysgol Gwaun Y Nant was complete and phase two works are ongoing, the building works at Oak Field are now complete and both schools are occupied. The Llantwit Learning Community scheme was underway and works started on site in August 2015.

 

The following table shows the planned spend on the Education Capital Programme from 2016/17 to 2020/21 incorporating expenditure under Band A schemes funded under 21st Century Schools Programme. Gross Expenditure totals £79.879m.

  

By Scheme

16/17

17/18

18/19

19/20

20/21

Total

 

£000's

£000's

£000's

£000's

£000's

£000's

Ysgol Dewi Sant

35

0

0

0

0

35

Llantwit Learning Community

13,052

1,240

29

0

0

14,321

Gwaun Y Nant and Oakfield

47

0

0

0

0

47

Barry Secondary Schools Transformation

750

0

0

0

0

750

Colcot Primary

250

250

0

0

0

     500

Asset Renewal

700

1,000

1,000

1,000

600

4,300

Asset Renewal Contingency

50

50

50

50

50

     250

St. Cyres Lower School Marketing and Disposal

65

0

0

0

0

65

Rhoose Primary New School

0

1,500

1,762

0

0

3,262

Gwenfo Primary Extension

394

11

0

0

0

405

St. Brides Expansion

346

10

0

0

0

356

Victorian Schools

1,200

800

0

0

0

2,000

Eagleswell Demolition

300

0

0

0

0

300

Band B Schemes

0

0

0

18,361

32,927

51,288

Schools ICT Loans

200

200

200

200

200

1,000

Schools Capital Loan Schemes

200

200

200

200

200

1,000

Total

17,589

5,261

3,241

19,811

33,977

79,879

 

The total allocation for Victorian Schools between 2015/16 and 2020/21 was £3.061m to support works across 21 Victorian Schools to address the existing issues with lath and plaster and masonry deterioration. The £1.061m budget for 2015/16 had been allocated to the following schemes via emergency power £270k to Victoria Primary School External Refurbishment Works, £741k to Over boarding Lath and Plaster Ceilings and £50k to Sandstone Repairs. Work was currently being carried out by Property Services to assess the works required between 2016/17 and 2017/18 and a full report would be brought to Cabinet with a strategy to address these problems.

 

There was an asset renewal budget of £900k in 2015/16, 200k of this budget had been vired to the Modular Building Resiting Ysgol Dewi Sant Scheme. The asset renewal budget increased to £1m from 2016/17; however, £300k was being requested to be brought forward into 2015/16 as detailed earlier in this report. In addition there was a £50k asset renewal contingency budget in each year. From 2020/21 the asset renewal budget has to reduce to the original £600k allocation due to increasing constraints on resources and the 21st Century Schools Band B Programme. Education in consultation with Property Services, allocate this budget in year to various schemes including rolling programmes of boiler and toilet renewal.

 

Band B Schemes are expected to commence in 2019/20 and in December 2014 the Council submitted proposals for a number of schemes to WG. Based on latest indications, it had been assumed that 50% funding would be available from WG to fund these schemes. However, there was no guarantee that the funding would be available from WG or what form it would take.

 

Indicative strategic projects for the Council under Band B funding would seek to address the following:

 

Expanding primary sector capacity and addressing the condition of school buildings in various areas across the Vale.

Rationalisation of school buildings currently situated on split sites.

 

The total cost for Band B schemes was projected to be in the region of £67.4m and of this total £18.361m and £32.927m had been included in Appendix B for 2019/20 and 2020/21 respectively.

 

The Education Capital Programme was funded as follows:

  

By Funding Source

16/17

17/18

18/19

19/20

20/21

Total

 

£000's

£000's

£000's

£000's

£000's

£000's

General Capital Funding

4,593

1,800

1,189

1,160

1,050

9,792

Capital Receipts

4,491

0

0

1,404

7,686

13,581

Other Reserves and Revenue Contribution

0

0

0

1,000

0

1,000

School Investment Reserve

2,433

915

290

1,397

3,391

8,426

School Rationalisation and Improvements Reserve

200

200

    200

200

200

1,000

IT Fund

200

200

200

200

200

  1,000

Local Government Borrowing Initiative

528

0

0

0

0

528

Prudential Borrowing

0

0

0

0

0

0

Total Internal Funding

12,445

3,115

1,879

5,361

12,527

35,327

S106 Agreements

709

1,021

1,362

7,700

1,000

11,792

Welsh Government Grant

4,435

1,125

0

6,750

20,450

32,760

Total Funding

17,589

5,261

3,241

19,811

33,977

79,879

Housing Improvement Plan

The 2015/16 Housing Improvement Programme budget totals £87.011m and £63.156m of this allocation related to the buyout from the housing subsidy system. The funding of the 2015/16 programme had been amended as set out in the table below: -

 

Funding

Current

2015/16

£'000

Amended

2015/16

£'000

Major Repairs Allowance Grant

2,760

2,760

Other Grant

2,069

2,069

Housing Capital Receipt

754

897

Housing Reserves

2,676

5,334

Unsupported Borrowing (Including HRA buyout)

78,752

75,951

Total

87,011

87,011

 

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 15th December, 2015. 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 BWG 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 £104.525m.

 

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 22nd February, 2016. Cabinet's final Capital Programme proposals would be considered by Council no later than 2nd March, 2016.

 

If the schemes proposed in Appendix B 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 2016

8,122

1,348

1,065

       

Anticipated Requirements - 2016/17

-5,515

0

-1,684

Anticipated Receipts - 2016/17

0

0

7,500

Balance as at 31st March 2017

2,607

1,348

6,881

       

Anticipated Requirements - 2017/18

0

-1,348

0

Anticipated Receipts - 2017/18

0

0

2,800

Balance as at 31st March 2018

2,607

0

9,681

       

Anticipated Requirements - 2018/19

0

0

                    0

Anticipated Receipts - 2018/19

0

0

0

Balance as at 31st March 2019

2,607

0

9,681

       

Anticipated Requirements - 2019/20

-4

0

-1,404

Anticipated Receipts - 2019/20

0

0

0

Balance as at 31st March 2020

2,603

0

8,277

       

Anticipated Requirements - 2020/21

        -223

0

-7,686

Anticipated Receipts - 2020/21

0

0

0

Balance as at 31st March 2021

2,380

0

591

       

Anticipated Requirements between 2021/22 and 2026/27

0

0

-5,250

Anticipated Receipts between 2021/22 and 2026/27

0

0

4,750

Balance as at 31st March 2027

2,380

0

91

 

The Education Capital Programme utilises general capital receipts in addition to capital receipts ring-fenced for Education.

 

The capital receipt balance for Social Services had been ring-fenced for Social Services capital expenditure. Options are being explored by the Council however, it was expected that the full capital receipt of £1.348m 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 2016/17 to 2020/21.

 

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 Head of Finance. The projected usage of this reserve over the period of the Capital Programme was shown below:

 

 

Project Fund

£'000

Anticipated Balance as at 1st April 2016

2,918

Anticipated Requirements - 2016/17

Anticipated Receipts - 2016/17

Balance as at 31st March 2017

-858

50

2,110

Anticipated Requirements - 2017/18

Anticipated Receipts - 2017/18

Balance as at 31st March 2018

-100

50

2,060

Anticipated Requirements - 2018/19

Anticipated Receipts - 2018/19

Balance as at 31st March 2019

0

50

2,110

Anticipated Requirements - 2019/20

Anticipated Receipts - 2019/20

Balance as at 31st March 2020

0

50

2,160

Anticipated Requirements - 2020/21

Anticipated Receipts - 2020/21

Balance as at 31st March 2021

0

50

2,210

 

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.

 

In considering the unsuccessful bids, a Member made a request that due to the fact that some of the Leisure Centres did not meet current health and safety standards, a feasibility study be undertaken to assess requirements. The Leader of the Council, in response, advised that the Council needed to discuss with Legacy Leisure a number of issues and a feasibility study may be considered an appropriate method in order to engage in that process.

 

Following a query with regard to street lighting and the reference to other funding being considered, the Head of Service advised that the Directorate was currently looking at other funding options for street lighting with the intention that a further report would be presented to the Scrutiny Committee and Cabinet in due course.

A Member expressed concern in relation to the fact that savings that had previously been highlighted may not be realised in the current financial year and that a report on street lighting had been requested for some time. The Head of Service stated that she was aware that a report was due to be presented in January 2016.

 

Following a query from a Member regarding the figure of £750,000 noted in the Programme for Barry Secondary School Transformation, the Leader of the Council advised that this had been included due to the fact that it had been anticipated that the female and male toilets at the school required remedial works. The figure remained in the budget as the issue of the transformation of the schools had not yet been finalised.


In response to a further query regarding vehicles and contract hire or leasing, the Leader of the Council advised that all funding options would be considered to ensure that the Council achieved the most economical and advantageous service, which could include leasing or contract hire.

 

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 Cabinet informed accordingly.

 

(2)                T H A T the following changes to the 2015/16 and 2016/17 Capital Programme as outlined below be noted:

  • Colcot Primary Roof - £100,000 of the 2016/17 Schools Asset Renewal budget is brought forward into 2015/16 to allow this scheme to proceed.
  • Modular Building Resiting Ysgol Dewi Sant - £200,000 of the 2016/17 Schools Asset Renewal budget is brought forward into 2015/16.
  • Urgent Health and Safety Works - The Urgent Health and Safety Works budget is increased by £4,917, to be funded from a revenue contribution from the Schools budget.
  • Cartref Porthceri Lift Replacement - This scheme is to be renamed 'Social Services Lift Refurbishments'.
  • Southway Lift Replacement - This scheme is to be renamed 'Residential Homes Call and Assistance Systems'.
  • Weycock Cross to Barry Comp Road Resurfacing - The 2015/16 Capital Programme is increased by £40,000, to be funded from the Visible Services reserve.
  • Wick to Ewenny Highway Improvements - An increase in the 2015/16 Capital Programme by £40,000, to be funded from the Visible Services Reserve.
  • Coast Protection and Land Drainage General - A virement of £50,000 to the Causeway Improvement Scheme.
  • Jenner Park and Colcot Pitches - The funding of this scheme is amended to £753,000 being funded from the Jenner Park reserve and £100,000 from a Sports Council for Wales grant.
  • Penarth Renewal Area - A virement of £55,000 from Castleland Renewal Area to Penarth Renewal Area.
  • Barry Regeneration Partnership Scheme - The reprofile of projects as set out within the report, paragraph 16.
  • Pedestrian Crossing across Ffordd Y Mileniwm and Improved Bus Access - This budget is increased by £52,000 to be funded from S106 monies and the scheme is renamed 'Pedestrian/Cycle improvements at Ffordd Y Mileniwm'.
  • Town Hall Library External Repairs - A virement of £12,000 to the Space Project Scheme.
  • Civic Offices Re-wire Scheme - A virement of £225,000 in 2015/16 and £58,000 in 2016/17 from the Space Project scheme to the Civic Offices Re-wire Scheme.
  • Court Road Contaminated Land Issues - The name of this scheme is changed to 'Court Road Depot - Survey, Feasibility and Infrastructure Budget'.
  • Vehicle Replacement Programme - The reprofiling of the Vehicle Replacement Programme expenditure as set out in paragraph 44 of the report.
  • St. Cyres Lower School Marketing and Disposal - An increase of £20,000 in 2015/16 and £65,000 in 2016/17 to be funded from capital receipts.

Reasons for recommendations

 

(1)                To allow full consultation on the future Capital Programmes.

(2)                To ensure that Members are aware of the position with regard to the 2015/16 Capital Programme."

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