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Agenda Item No. 10(g)

 

THE VALE OF GLAMORGAN COUNCIL

 

COUNCIL MEETING: 4 MARCH 2015

 

REFERENCE FROM CABINET:  23 FEBRUARY 2015

 

C2650       FINAL CAPITAL PROPOSALS 2015/16 TO 2019/20 (L) (SCRUTINY COMMITTEE – CORPORATE RESOURCES) -

 

Approval was sought for the Final Capital Programme Proposals for the years 2015/16 to 2019/20.

 

The Initial Capital Programme Proposals 2015/16 to 2019/20 went to Cabinet on 17 November, 2014 (minute C2534). They were subsequently referred to Scrutiny Committees in December 2014.

 

In responding to the Initial Capital Programme Proposals, Corporate Resources Scrutiny Committee, at its meeting on the 9 December, 2014 (minute no. 682), recommended that the initial Capital Budget Proposals for 2015/16 be endorsed.  No recommendations were made by the following Scrutiny Committees:-

  • Economy and Environment – 2nd December 14 – noted report.  
  • Housing and Public Protection – 3rd December 14 – noted report.
  • Lifelong Learning – 8th December 14 – noted report. 
  • Social Care and Health – 1st December 14 – noted report. 

The minutes and recommendations of Scrutiny Committee (Corporate Resources) was referred to Cabinet on the 12 January, 2015 (minute no.C2599) as no recommendations were made Cabinet recommended that the Initial Capital Budget Proposals for 2015/16 be endorsed.

 

On 10 December, 2014, the Welsh Government announced the final 2015/16 General Capital funding settlement. There had been a £62K (1.13%) reduction in funding from 2014/15.  There was no indication of the level of funding likely beyond 2015/16; therefore, in line with the approach adopted in the Medium Term Financial Plan, the proposals assumed a reduction of 10% in each year of the programme from 2016/17.  On this basis, a table representing the capital funding from the Welsh Government was shown below:  

 

 Resources from Welsh Government

    15/16

   16/17

    17/18

   18/19

   19/20

 

    £’000

    £’000

    £’000

    £’000

    £’000

Supported Borrowing - General Fund

    3,398

    3,058

    2,752

    2,477

    2,229

General Capital Grant

    2,068

    1,861

    1,675

    1,507

    1,356

 Total

    5,466

    4,919

    4,427

    3,984

    3,585

 

Another means of financing capital expenditure was through capital receipts resulting from the sale of assets. Receipts from the sale of Housing Revenue Account (HRA) assets could only be spent in the HRA and could not be used to finance General Fund capital schemes. As at 31 March, 2015, the forecast balance of useable capital receipts totals £9.937M of which £1.225M was ring-fenced for Social Services and £0.074M was ring-fenced for Education.  A further £0.455M general capital receipts, £0.163M ring-fenced Social Services capital receipts and £11.250M ring-fenced Education capital receipts for the School Investment Programme were estimated to be generated between 2015/16 and 2019/20. It should be noted, however, that projected future capital receipts were not guaranteed. 

 

HRA capital receipts arose from the sale of dwellings under the Right To Buy Act, of HRA land and other HRA assets.  In the case of HRA receipts, regulations set out that receipts since 1 April, 2004 could only be used to fund HRA capital expenditure or to repay HRA debt.  As at 31 March, 2015, the forecast balance of useable HRA capital receipts was nil.  It was anticipated that receipts totalling £0.754M would be received during 2015/2016, and these would be used to fund the Housing Improvement Programme during the year.  No further HRA receipts had been assumed.

 

If the schemes shown in Appendix A attached to the report were approved, the effect on General Fund useable capital receipts would be as shown in the following table.

 

Capital Receipts

General

Ringfenced Social Services

Ringfenced Education

           £000

             £000

           £000

Balance as at 31st March 2015

          8,638

            1,225

               74

Anticipated Required in 2015/16

         -3,274

                   0

                0

Anticipated Receipt in 2015/16

             455

              163

             950

Balance as at 31st March 2016

          5,819

            1,388

          1,024

Anticipated Required in 2016/17

         -5,450

                   0

         -1,684

Anticipated Receipt in 2016/17

                 0

                   0

          2,000

Balance as at 31st March 2017

             369

            1,388

          1,340

Anticipated Required in 2017/18

              -23

           -1388

                 0

Anticipated Receipt in 2017/18

                 0

                   0

           5,500

Balance as at 31st March 2018

             346

            0

           6,840

Anticipated Required in 2018/19

                 0

                   0

                  0

Anticipated Receipt in 2018/19

                 0

                   0

                  0

Balance as at 31st March 2019

             346

           0

           6,840

Anticipated Required in 2019/20

                -4

                   0

          -1,404

Anticipated Receipt in 2019/20

                 0

                   0

           2,800

Balance as at 31st March 2020

            342

             0

           8,236

Anticipated Required to 2025/26

                 0

                   0

          -8,186

Anticipated Receipts to 2025/26

                 0

                   0

                  0

Balance as at 31st March 2026

            342

               0

                50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

The capital receipt received in 2014/15 from the sale of Gardenhurst had been ring-fenced for Social Services capital expenditure. Options for its use were being explored by the Council however, it was expected that all ring-fenced Social Services capital receipts would be utilised for older persons accommodation in 2017/18.

 

Capital expenditure could also be funded by revenue contributions or the utilisation of existing reserves. A reserve was a sum of money that had been set aside by the Council for a specific purpose. They were voluntary and could be made when the Council determined. Advances could be made from a reserve for the purchase of assets, which were then repayable over the life of the asset and the reserve was constantly replenished e.g. Vehicle Renewals Fund. Alternatively schemes could be funded from reserves with no repayment, however, once spent that source of funding was lost.

 

One such reserve was the Project Fund which existed to finance capital and revenue projects.  The aim of the Fund was to initially finance a project with repayment of such advances (including interest), where possible, being credited back to the fund. The estimated balance of the Fund as at 31 March, 2015 was £4.367M. The following table showed the projected position of the fund over the next five years.

 

Project Fund Balance

                        £'000

Estimated Balance as at 1st April 2015

  4,367

Anticipated Requirements – 2015/16

(1,686)

Anticipated Receipts – 2015/16

       40

Balance as at 31st March 2016

  2,721

Anticipated Requirements – 2016/17

   (400)

Anticipated Receipts – 2016/17

         0

Balance as at 31st March 2017

  2,321

Anticipated Requirements  - 2017/18

   (100)

Anticipated Receipts   - 2017/18

         0

Balance as at 31st March 2018

  2,221

Anticipated Requirements – 2018/19

         0

Anticipated Receipts – 2018/19

         0

Balance as at 31st March 2019

  2,221

Anticipated Requirements – 2019/20

         0

Anticipated Receipts – 2019/20

         0

Balance as at 31st March 2020

  2,221

 

In a similar vein, the Council had an IT Fund estimated at £4.382M as at the end of 2014/15. The Council relied heavily on technology to deliver its services and the Fund allows investment in this infrastructure and also enabled the Council to exploit opportunities to reduce the cost of services. This was in accordance with a report from the Wales Audit Office in December 2012 entitled 'Use of Technology to Support Improvement and Efficiency in Local Government’.  Best practice highlighted in the report recommends that 'A corporate technology development fund was used to fund all developments with commitment that efficiencies replenish funds'.

 

Other means of generating income to fund capital projects was through monies forthcoming under S106 planning obligations.

 

Outside of the above, the Council was heavily dependent on specific grant funding to supplement its own resources if certain capital schemes were to be progressed. Generally, this came via Welsh Government, although contributions from other public sector organisations or associated bodies were also forthcoming. It was estimated that over the next 5 years, the level of specific grant funding for General Fund Capital Schemes was approximately £31.377M which was around £8.996M more than the level of General Capital Funding for the same period (£22.381M). Many of these schemes required a match funding contribution to be made by the Authority to the cost of the scheme.

 

When considering options for capital financing, the ability of the Council to finance the repayment of any loans it raised for the funding of capital schemes must be considered.  Part 1 of the Local Government Act 2003 required local authorities to have regard to the Prudential Code, which had been developed by CIPFA (the Chartered Institute of Public Finance and Accountancy) as a professional code of practice. In setting the capital programme, the Council must ensure that the key objectives of the Prudential Code were complied with. The Council must ensure that its capital investment plans:

  • were affordable, and that
  • All external borrowing and other long term liabilities were within a prudent and sustainable level.
  • The consequent treasury management decisions for Prudential Borrowing (also referred to as Unsupported Borrowing) were taken in accordance with good professional practice

The Code recognised that in making capital investment decisions the Council must have regard to option appraisal, asset management planning and strategic planning. However, given the expected severity of cuts in future revenue resources, the potential for servicing debt not funded by Welsh Government as part of General Capital Funding or already provided for (e.g. Prudential Borrowing for the Schools Investment Programme and Housing Improvement Programme) was extremely limited as this would need to be funded through the revenue budget.

 

The projected amount of prudential borrowing utilised at 31 March, 2015 was £17.537M which was made up of £6.690M for Highway Improvements under the Local Borrowing Initiative, £5.370M for Penarth Learning Community, £4.554M Housing Improvement Programme and the Local Government Borrowing Initiative for 21st Century Schools £0.923M. After allowing for repayments the balance was expected to be £17.024M at 31 March, 2015.

 

The table below set out the Council's Prudential Borrowing over the next 5 years: -

 

Prudential Borrowing

Scheme

2015/16

2016/17

2017/18

2018/19

2019/20

Total

 

 

£000

£000

£000

£000

£000

£000

Affordability

Penarth Learning Community and Llantwit Learning Community

2,074

0

0

0

0

2,074

Repayments to be funded from Education budget and saving from amalgamation of schools.

21st Century Schools Local Borrowing Initiative

1,187

528

0

0

0

1,715

Repayments funded from specific grant in 2014/15 and budget transferred into RSG from 2015/16

Housing Improvement Programme

15,596

19,434

1,688

3,222

785

40,725

Repayments factored in as part of Housing Business Plan

Total

18,857

19,962

1,688

3,222

785

44,514

 

 

 

Future Prudential Borrowing for School Investment Programme Band B schemes totalled £1.5M in 2021/22.

 

Total new Prudential Borrowing over the next 5 years was estimated at £44.514M of which £40.725M related to the Housing Improvement Programme.

 

Included in the Council's unsupported borrowing in 2015/16 would be an amount for the Housing Subsidy buyout as reported to Cabinet in December 2014 (minute C2580).  This sum was not included in the above figures as further information would not be known until the end of March 2015.

 

Proposed Capital Programme 2015/16 to 2019/20

Following consideration of all of the above, the proposed 5-year Capital Programme 2015/16 to 2019/20 was attached at Appendix A to the report. Since the Initial Capital Programme Proposals was prepared, a small number of amendments were received and were outlined below.

 

It had been requested that the £500K built into the 2015/16 Capital Programme for the School Investment Programme be carried forward into the 2016/17 Capital Programme and increased to £750K to be funded from the School Investment Strategy Reserve.  The £750K would be used to address essential requirements required for coeducational provision at the Barry and Bryn Hafren Buildings subject to proposals proceeding following statutory consultation.

 

The Rhoose Expansion Scheme had been reprofiled from 2015/16 - 2016/17 to 2017/18 - 2018/19, this was to reflect the expected timescales of delivery of the work.

 

The bid for the Additional Highways /Environmental Improvements scheme had been reduced due to a change in the projected cost of the scheme from £600K to £450K and split £150K and £300K over 2015/16 and 2016/17 respectively. 

 

The bid for the Causeway Improvement scheme had been reduced from £800K to £750K due to a change in the projected cost to the scheme and the whole amount was now only included in 2015/16 of the Capital Programme.

 

The bid for £600K the High Street/Broad Street Traffic Management scheme was included in the Initial Capital Programme split equally over 2015/16 and 2016/17.  This bid had been increased to £750K, £375K in 2015/16 and £375K in 2016/17. The additional monies would be funded by a transfer from the Additional Highways /Environmental Improvement scheme bid which had been reduced by £150K as this was no longer required.

 

The Carbon Management Fund scheme £150K had been included in the 2015/16 Capital Programme to fund energy saving schemes.  This would be funded from the Energy Management Fund.  This complemented the £100K included in the Revenue Budget Proposals as one off funding in 2015/16 only, to take forward energy initiatives.

 

At the end of the Capital Programme period (31 March 2020) the outstanding prudential borrowing taking into account repayments was expected to be £13.463M General Fund and £42.121M HRA.

 

The Financial Strategy

 

The Capital Programme had continued to be set with regard to the key themes of regeneration and sustainability, examples are as follows;

  • The continued development of the School Investment Programme with Band B anticipated to start in 2019/20 and continued investment in housing under the Housing Improvement Programme.  These schemes would bring with them continued opportunities for growth, development of surrounding infrastructure and inward investment.
  • The draft Rural Local Development Strategy was endorsed by Cabinet on 22 September, 2014 and submitted to Welsh Government as a bid for grant under the LEADER strand of the Rural Development Plan for Wales.  It was also agreed that £250K of the Regeneration Fund would be allocated as match funding for the grant if approved.
  • Ensuring that all large Council Capital Projects are BREEAM (the design and assessment method for sustainable buildings) excellent rated.

In the Final Capital Programme Proposals 2014/15 to 2018/19 a number of pressures were identified that would need to be subject to on-going review and management as follows;

 

Capital Budget Pressure

Mitigating Action Taken

The possibility of increased demands upon flooding, coastal protection and the environment generally (including an accelerated deterioration of the highways infrastructure).

 

£170K for Flood Management schemes at Boverton have been carried forward into the 2015/16 Capital Programme.  On-going funding for Flood Risk Management was provided for in the five year capital programme at £100K per annum.

The general shortfall of funding available to address the Council’s asset renewal requirements.

Bids for Asset Renewal were ranked in accordance with Risk and Corporate Priority to help assist with rationing the scarce resources available.  Following a review of Asset Renewal requirements as part of the budget process an additional £300K had been allocated to the Education service in 2015/16 and £400K from 2016/17 onwards.  An additional £300K had been added to Visible Services in 2015/16 to meet their specific pressures.

 

 

The Council’s ambitions for further regeneration and how they could be realised.

Provision was made in each year of the capital programme for regeneration via the Barry Regeneration Partnership Fund and £150K each year for the Regeneration Fund.  £250K of the Regeneration Fund was ring fenced in the 2015/16 to 2019/20 Capital Programme for the next Rural Development Programme business plan.

The continued expansion over time of the Schools Investment Programme;

Band B Schemes for the School Investment Strategy had now been included in the Capital Programme.  Welsh Government had confirmed that Band B would commence in 2019/20.  It was estimated that the cost of Band B would be in the region of £67.4M and it was assumed that the Welsh Government grant intervention rate would be 50%.

Funding of Renewal Areas to address housing, social and environmental problems in the light of reduced grant availability.

In 2015/16 and 2016/17 an allocation of £500K had been made for match funding the Renewal Area Grant (plus £496K slippage from 2014/15). Grant funding for this scheme was expected to end in 2016/17.

 

School Investment Programme

 

The 21st Century Schools Programme was the Welsh Government's funding initiative for investment in schools. The first tranche of schemes under Band A of the funding was 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 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 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 was 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 showed the sums to be borrowed between 2014/15 and 2016/17 and the corresponding borrowing costs provided by WG.

 

2014/15 - 2016/17 Local Government Borrowing Initiative

 

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 £29.898M.   Since the Initial Capital Programme in November 2014 the Council had increased the contribution to the programme by a further £950K to the Llantwit Major Learning Community Scheme at Cabinet on the 12 January 2015 (Minute C2607)

 

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 £84.969M.

 

Proposed Education Programme to 2019/20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By Scheme

14/15

15/16

16/17

17/18

18/19

19/20

Total

£000's

£000's

£000's

£000's

£000's

£000's

£000's

Penarth Learning Community

14,747

2,780

0

0

0

0

17,527

Demolition of Ysgol Maes Dyfan

200

0

0

0

0

0

200

Ysgol Nant Talwg (£1.131M 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

475

6,555

12,402

1,240

29

0

20,701

Gwaun Y Nant & Oakfield

1,188

2,410

47

0

0

0

3,645

Slippage Barry Cluster

0

147

0

0

0

0

147

Colcot

0

0

250

250

0

0

500

Barry Comp. Art Block

315

10

0

0

0

0

325

Barry Secondary School Transformation

0

0

750

0

0

0

750

Eagleswell Demolition

0

0

300

0

0

0

300

Band B Schemes

0

0

0

0

0

18,361

18,361

Modular Building Resiting

0

500

0

0

0

0

500

Asset Renewal

841

900

1,000

1,000

1,000

1,000

5,741

Asset Renewal Contingency

63

50

50

50

50

50

313

Rhoose S106

0

0

0

1,000

1,762

0

2,762

Llangan Classroom Base

0

117

0

0

0

0

117

Victorian Schools

600

1200

1,200

800

0

0

3,800

Evenlode – New School Hall

254

0

0

0

0

0

254

Additional Capital Schemes

950

0

0

0

0

0

950

Schools Challenge Cymru

30

0

0

0

0

0

30

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

352

300

300

300

300

300

1,852

Other

517

0

0

0

0

0

517

Total

23,520

16,823

16,534

4,840

3,341

19,911

84,969

 

 

The total allocation for Victorian Schools between 2014/15 and 2019/20 was £3.8M 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 three external consultants to assess scheme requirements and generate a prioritised list of schemes which would be brought to Cabinet in a full report which would address these problems.  Of the £600K allocated for Victorian Schools in the 2014/15 Capital Programme it had been approved by emergency powers that £75K was utilised to fund external consultancy services, £462K was utilised to increase the budget of the Overboarding Ceilings scheme, £20K was utilised to increase the budget of the scheme Victoria Primary School Emergency Roofing and £43K was used to fund emergency/urgent works should they be required.

 

There was an asset renewal budget of £900K in 2015/16 increasing to £1M in 2016/17. In addition there was £50K asset renewal contingency budget in each year.  Education in consultation with Property Services, allocated this budget in year to various schemes including rolling programmes of boiler and toilet renewal.

 

There was a £750K budget for Barry Secondary Schools in the 2016/17 Capital Programme. 

 

Band B schemes were expected to commence in 2019/20; the Council would be submitting proposals for a number of schemes.  Based on latest indications, it had been assumed that 50% funding would be available from Welsh Government to fund these schemes.  However there was no guarantee that this funding would be available from Welsh Government.

 

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.  It was anticipated that Band B would be funded from £33.7M Welsh Government Grant, £13.840M Capital Receipts, £9.023M S106 funding, £7.107M Reserves, £2.230M General Capital Funding and £1.5M Prudential Borrowing.

 

It was requested that the capital programme be increased by £67.4M from 2019/20 onwards and individual schemes would be included in the programme as and when they were approved. 

 

The Education Capital programme was anticipated to be funded as follows;

 

By Funding Source

14/15

15/16

16/17

17/18

18/19

19/20

Total

 

£000's

£000's

£000's

£000's

£000's

£000's

£000's

General Capital Funding

2,972

2,512

4,593

1,000

789

1,160

13,026

Capital Receipts

4,125

1,247

4,426

800

400

1,404

12,402

Other Reserves and Revenue Contribution

2,328

950

0

0

0

1,000

4,278

School Investment Reserve

1,062

2,411

1,756

415

290

1,397

7,331

School Rationalisation and Improvements Reserve

352

300

300

300

300

300

1,852

IT Fund

200

200

200

200

200

200

1,200

Prudential Borrowing

3,370

3,261

528

0

0

0

7,159

Prudential Borrowing Pending Receipts

2,000

0

0

0

0

0

2,000

Total Internal Funding

16,409

10,881

11,803

2,715

1,979

5,461

49,248

Other Councils Contributions

0

1,330

0

0

0

0

1,330

S106 Agreements

829

117

296

1,000

1,362

7,700

11,304

Welsh Government Grant

6,282

4,495

4,435

1,125

0

6,750

23,087

Total Funding

23,520

16,823

16,534

4,840

3,341

19,911

84,969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Housing Improvement Programme

 

The Welsh Government required all local authorities who retained their housing stock to submit an acceptable Housing Business Plan annually that incorporated a detailed financial forecast in the form of a 30 year financial model. The Business Plan was the primary tool for a local authority’s housing landlord service and included all assets within the Council’s Housing Revenue Account (HRA).

 

The latest annual Plan was submitted to Welsh Government in January 2015, and formed the basis of the Major Repairs Allowance (MRA) grant application, a pivotal financing component for the Housing Improvement Programme (to meet the Welsh Housing Quality Standard (WHQS)).

 

The MRA for 2015/16 had not yet been announced by the Welsh Government but the assumed budget in Appendix A attached to the report remained at £2.760M p.a., as received in 2014/15.

 

The latest Business Plan projections were reported to Cabinet on 15th December 2014 (minute no. C2580) and approved at the Council meeting of 17th December 2014.  The Plan outlined an increase in the total amount of unsupported borrowing over 30 years from £33.9M to £43.629M for meeting and maintaining WHQS, and any regeneration work.  There was an additional estimated unsupported borrowing amount of £63.2M included in the latest Plan, which would be required for the exit of the Housing Revenue Account Subsidy System.  Based on the latest Business Plan projections, the potential savings generated from exiting the HRA Subsidy System would mean the anticipated date that all prudential debt (£106.829M) could be repaid was now 2039/40 (previously 2032/33, on a debt of £33.9M).

 

The Final Capital Programme Proposals included an additional £550K for Emergency Works in 2015/16, 2016/17 and 2017/18 to be funded from unsupported borrowing.

 

It was expected that WHQS would be attained by 2017, with on-going work required to maintain the standard based on component lifecycles.  In addition the latest Housing Improvement Programme included regeneration work of £20M between years 2015/16 and 2019/20, which would potentially include some new build schemes, as well as works to enhance the estates.

 

Other Schemes

 

A sum of £800K per annum was included to address high priority Visible Services assets and infrastructure improvements.

 

Flood Risk Management funding of £100K per annum was provided in addition to funding slipped from 2014/15 for Flood Risk Management Schemes at Boverton.

 

A sum of £184K in 2015/16, £260K in 2016/17 and £300K from 2017/18-2019/20 had been allocated in relation to the Barry Regeneration Partnership. As well as being used for preparatory work (e.g. site investigations), this may also be applied as match funding to lever additional sources of grant funding. In addition, a further £150K had been allocated each year to fund regeneration initiatives including feasibility studies. A sum of £50K had been allocated in 2015/16 for feasibility studies into future improvements at Penarth including the Esplanade.

 

Funding for Disabled Facilities Grants of £4.5M had been provided in total over the 5 years.

 

The Capital Programme Proposals included funding for the Space Project £1.178M in 2015/16 and £300K in 2016/17. This investment was funded by the Project Fund was expected to achieve net revenue savings.  £125K was currently identified as a saving in 2016/17 from the termination of the Provincial House lease, however further savings could be identified as the project progresses.

 

This was a matter for Executive and Council decision

 

RESOLVED –

 

That the following be recommended to Council:-

 

(1)       T H A T the final budget proposals for the Capital Programme for the years 2015/16 to 2019/20 as set out in Appendix A attached to the report be approved.

 

(2)       T H A T 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 Housing Improvement Programme as appropriate.

 

(3)       T H A T 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 budgets as appropriate.

 

(4)       T H A T the Renewal Area Grant, once approved by the Welsh Government, be automatically included in the 2015/16 Capital Programme.

 

(5)       T H A T subject to the approval and award of Welsh Government Band B 21st Century Schools grant funding, the Capital Programme from 2020/21 onwards be increased by £49.039M (£18.361M was already included for 2019/20, as outlined in Appendix A attached to the report), and schemes be included in the programme on an individual basis following Welsh Government agreement to funding.

 

(6)       T H A T the policy for making Minimum Revenue Provision in 2015/16 be approved.

 

Reasons for decisions

 

(1)       To set and approve future capital programmes to 2019/20.

 

(2)       To enable the Housing Capital budget to be managed effectively.

 

(3)       To enable the Asset Renewal budgets to be managed effectively.

 

(4)       To update the 2015/16 Capital Programme.

 

(5)       To approve the budget for Band B 21st Century Schools.

 

(6)       To agree the basis of the Minimum Revenue Provision calculation for 2015/16.

 

 

[View Cabinet Report

 

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