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Agenda Item No. 6(e)

 

THE VALE OF GLAMORGAN COUNCIL

 

COUNCIL: 7TH DECEMBER, 2011

 

REFERENCE FROM CABINET: 16TH NOVEMBER, 2011

 

 

C1510           INITIAL CAPITAL PROGRAMME PROPOSALS 2012/13 (L) (SCRUTINY - CORPORATE RESOURCES) -

 

Approval was sought for the revised Capital Programme for 2011/12 and the Initial Capital Proposals for 2012/13 so that they may be submitted to the Council's Scrutiny Committees for consultation.

 

The following information was provided with regard to the 2011/12 Capital Programme:

 

Barry Waterfront Park and Ride Additional Design - SEWTA had agreed an additional grant sum of £46,000 for this scheme to cover additional costs on the main contract sum, design and management fees due to additional works required on drainage and redesign following planning procedure, as well as ecology related fees.  This would increase the current budget of £606,000.  Works were proceeding and a full spend for the year was anticipated.

 

Regional Capital Access Fund - the Council had received grant funding of £74,792 to provide support for capital initiatives to achieve increased waste prevention and improve recycling initiatives.  It was intended that this capital funding would be used for a new recycling vehicle and the procurement process was being progressed via the Council's Fleet Management Section.  Whilst tenders had not been received to date, it was anticipated that the vehicle would cost slightly more than the available grant and as such, a contribution from revenue budgets of up to £30,000 would be required.  Accordingly, it was requested that the full cost of the vehicle purchase was included in the 2011/12 Capital Programme.

 

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

 

·       Llanmaes Flood Risk Management - despite having received funding for the Coldbrook Catchment Flood Management Scheme, the Council had since been advised that it was extremely unlikely that grant funding for the Llanmaes Scheme would be forthcoming in the current financial year.  Notwithstanding this, the Council would still be making an application for funding to the Welsh Government to progress the scheme to the detailed design stage.  Even in the event of an unexpected late grant fund offer being received, there was now insufficient time to achieve the full budget spend.  The Director of Environmental and Economic Regeneration would be taking a separate Cabinet report on both the Coldbrook and Llanmaes Flooding Scheme shortly. 

·       Vehicle Renewal Programme - expenditure on this budget was well behind profile.  The Council had been advised that the original 'All Wales Public Sector Framework Agreement for the Acquisition of Commercial Vehicles' had been replaced by the Yorkshire Purchasing Organisation (Pro 5 Framework).  However, this arrangement had not been formally accepted by the All Wales Fleet and Transport Managers Group and the Welsh Purchasing Consortium, which had caused a delay in the purchasing of vehicles during the current financial year.  To expedite matters, authorities in Wales were currently making their own arrangements to purchase vehicles during 2011/12 whilst planning to introduce a Vehicle Purchasing Framework in the future.  Whilst every effort was being made to maximise expenditure on this budget, the Fleet Manager had advised that there could potentially be some underspend at the end of the financial year.  This would be quantified later in the financial year.

·       Barry Waterfront Park and Ride Additional Design - the Welsh Government grant funded scheme for works around the Barry Dock train station and Dock Office car park had encountered delays due to drainage problems.  This had put the scheme four weeks behind the profile but additional funding had successfully been bid from the Welsh Government as detailed above and completion was still expected well before the end of the current financial year.  The budget consequently would be re-profiled in future capital monitoring reports to reflect the current situation.

 

The Welsh Government will announce the provisional 2012/13 General Capital Funding on 18th November, 2011.  The 2012/13 capital settlement represented a 6.8% cut in funding over the previous year's allocation.  Appendix B to the report had reflected this reduction in addition to the forecast cut for 2013/14 which represented a further 11.5% reduction with this figure being used year on year to 2016/17.

 

The Cabinet had previously approved, on 13th February, 2008, that the Director of Finance, ICT and Property, in consultation with the Cabinet Member responsible for Finance, be given delegated authority to transfer supported borrowing between General Fund and the Housing Capital Budgets as appropriate.  The Council had requested a transfer of £560,000 for 2012/13.  A transfer of £280,000 each year had been assumed in Appendix B for each subsequent year to 2016/17.

 

As for the Major Repairs Allowance (MRA) which was the grant that provided capital funding to the Housing Revenue Account (HRA), for 2012/13 had not yet been announced by the Welsh Government.  Accordingly, Cabinet would be advised once the announcement had been made.  An assumption had been made in Appendix B that the grant would continue at the current allocation of £2.7 million during 2012/13. 

 

In addition to funding from the Welsh Government, the Council would finance part of the capital programme from its own resources e.g. capital receipts and reserves. 

 

Appendix B outlined the proposed 2012/13 Capital Programme.  The undermentioned table detailed the General Capital Funding and internal resources required to fund the proposed schemes.

 

Analysis of Net Funding Required for the Indicative 2012/13 Capital Programme

GENERAL FUND

£’000      

£’000

Welsh Assembly Government Resources     

 

 

Supported Borrowing

3,589

 

General Capital Grant

2,090

 

 

 

5,679

Council Resources

 

 

Capital Receipts

1,021

 

Reserves/Leasing

3,842

 

 

 

4,863

Net Capital Resources

 

10,542

 

 

 

HOUSING REVENUE ACCOUNT

£’000   

£’000

Housing Reserves

5,046

 

Housing Capital Receipts

757

 

Supported Borrowing

560

 

 

 

6,363

Net Capital Resources

 

6,363

 

The indicative 2012/13 Capital Programme as detailed in Appendix B to the report included allocations already approved by the Council.

 

With regard to capital bids for 2012/13, as with previous years, due to the anticipated reductions in future capital funding, and in order to review historic priorities, all those budgets previously included in the indicative future Capital Programme were withdrawn, other than those schemes which would be contractually committed by the end of March 2012.  Officers had also been asked to re-bid for those sums that they still regarded as a high priority as part of the 2012/13 bidding round.

 

It was also noted that bids must also be evaluated for sustainable development purposes based on four areas of Sustainable Development which were detailed in the report.  In addition, sustainable checklists would be requested from Project Managers for each of the proposed bids on Appendix B.  These would be reviewed by members of the Sustainable Development Working Group with a view to ensuring that wherever possible the four sustainable targets were addressed.  The results would be included in the Final Capital Proposals report in February 2012.

 

The Budget Working Group had prioritised bids based on the recommendations of the Corporate Asset Management Group (CAMG).  The method of prioritisation used was as follows:

 

A                     Health and Safety Legislation

B                     Other Legislation/Statutory requirement

Ci                    Economic Sense

Cii                   Corporate Plan

Ciii                  Sufficiency

D                     Condition/Suitability

E                     Welsh Government Objectives

F                      Low Priority.

 

Included in Appendix B was the sum of £2.402 million for the second phase of the Barry Welsh Medium Schools accommodation at Ysgol Nant Talwg.  Phase 2 Llantwit Major Welsh Medium proposals were currently being reviewed and were not included in Appendix B to the report.  In addition to the capital bids included in Appendix B, Appendix C listed capital bids received that were unsuccessful and had not been put forward for inclusion in the 2012/13 programme. 

 

The next stage was for the estimates to be submitted to the Council's Scrutiny Committees for consultation.  The Scrutiny Committee (Corporate Resources) was the lead Scrutiny Committee and would consider both the Initial Budget Proposals and the comments of the other Scrutiny Committees had made.  The responses of Scrutiny Committees were required to be made by no later than 20th December, 2011.  It was also proposed to consult the Local Service Board.

 

Part of the report was required to be referred to Council for approval.

 

RESOLVED -

 

(1)       …………..

 

(2)       T H A T Council be recommended to adopt the following change to the Capital Programme:

 

·                    Regional Capital Access Fund - include the sum of £105,000 in the Capital Programme (funded partly from Welsh Government grant and partly from revenue budgets).

 

(3)       …………..

 

Reasons for decisions

 

(1)       …………..

 

(2)       To obtain Council approval.

 

(3)       …………..”

 

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