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Agenda Item No. 8(e)

 

THE VALE OF GLAMORGAN COUNCIL

 

COUNCIL MEETING: 2 MARCH 2016

 

REFERENCE FROM CABINET:  22 FEBRUARY 2016

 

C3080                        Final Capital Proposals 2016/17 to 2020/21 (L) (Scrutiny Committee - Corporate Resources) –

               

Approval was sought for the Final Capital Programme Proposals for the years 2016/17 to 2020/21.

 

The Initial Capital Programme Proposals 2016/17 to 2020/21 were presented to Cabinet on 16 November, 2015 (minute C2974 refers). They were subsequently referred to Scrutiny Committees in November/December 2015.

In responding to the Initial Capital Programme Proposals, no recommendations were made by the following Scrutiny Committees:-

Social Care and Health –30 November, 2015 – noted report. 

Economy and Environment – 1 December, 2015 – noted report.  

Housing and Public Protection – 2 December, 2015 – noted report.

Lifelong Learning – 7 December, 2015 – noted report. 

Corporate Resources Scrutiny Committee, at its meeting on 8 December, 2015 (minute no. 661 refers), recommended that the Initial Capital Budget Proposals be endorsed.

 

The minutes and recommendations of Scrutiny Committee (Corporate Resources) were referred to Cabinet on the 11 January, 2016 (minute no.C3037 refers) as no recommendations were made Cabinet recommended that the Initial Capital Budget Proposals be endorsed.

 

On 9 December, 2015 the Welsh Government announced the provisional 2016/17 General Capital funding settlement. There had been a £47K (0.86%) reduction in funding from 2015/16.  The Initial Capital Programme Proposals in November 2015 assumed a 10% reduction and therefore an additional £500k was available in 2016/17.  There was no indication of the level of funding likely beyond 2016/17, 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 2017/18.  On this basis, a table representing the capital funding from the Welsh Government was shown below:  

 

 

 

 

 

 

 

 

 Resources from   Welsh Government

    16/17

   17/18

    18/19

   19/20

   20/21

 

    £’000

    £’000

    £’000

    £’000

    £’000

Supported Borrowing -   General Fund

    3,369

    3,032

    2,729

    2,456

    2,210

General Capital Grant

    2,050

    1,845

    1,660

    1,494

    1,345

 Total

    5,419

    4,877

    4,389

    3,950

    3,555

                 

 

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, 2016, the forecast balance of useable capital receipts totaled £11.84M of which £1.34M was ring-fenced for Social Services and £1.07M was ring-fenced for Education.  No further general capital receipts or ring-fenced Social Services capital receipts were anticipated between 2016/17 and 2020/21.  A further £15.98M ring-fenced Education capital receipts for the School Investment Programme were estimated to be generated between 2016/17 and 2020/21. It was noted, however, that projected future capital receipts were not guaranteed. 

 

HRA capital receipts were 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, 2016 the forecast balance of useable HRA capital receipts was nil.  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 2016

9,430

1,339

1,069

Anticipated Required   in 2016/17

-7,490        

0                 

-1,102               

Anticipated Receipt in   2016/17

0

0

38

Balance as at 31st   March 2017

1,940

1,339

5

       

 

 

 

Anticipated Required   in 2017/18

0

-1339

-5

Anticipated Receipt in   2017/18

0

0

0

Balance as at 31st   March 2018

1,940

0

0

       

 

 

 

Anticipated Required   in 2018/19

0

0

0

Anticipated Receipt in   2018/19

0

0

8,387

Balance as at 31st   March 2019

1,940

0

8,387

       

 

 

 

Anticipated Required   in 2019/20

-4

0

-1,404

Anticipated Receipt in   2019/20

0

0

1,875

Balance as at 31st   March 2020

1,936

0

8,858

       

 

 

 

Anticipated Required   in 2020/21

-223

0

-7,686

Anticipated Receipt in   2020/21

0

0

0

Balance as at 31st   March 2021

1,713

0

1,172

       

 

 

 

Anticipated Required   to 2026/27

0

0

-5,250

Anticipated Receipts   to 2026/27

0

0

5,685

Balance as at 31st   March 2027

1,713

0

1,607

                 

 

 

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

 

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, 2016 was £3.53M.  A balance of £2M would be retained as a balance on the fund.  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 2016

3,529

Anticipated Requirements – 2016/17

(1,251)

Anticipated Receipts – 2016/17

0

Balance as at 31st March 2017

2,278

Anticipated Requirements – 2017/18

(100)

Anticipated Receipts – 2017/18

0

Balance as at 31st March 2018

2,178

Anticipated Requirements    - 2018/19

0

Anticipated Receipts     - 2018/19

0

Balance as at 31st March 2019

2,178

Anticipated Requirements – 2019/20

0

Anticipated Receipts – 2019/20

0

Balance as at 31st March 2020

2,178

Anticipated Requirements – 2020/21

0

Anticipated Receipts – 2020/21

0

Balance as at 31st March 2021

2,178

 

In a similar vein, the Council had an IT Fund estimated at £4.19M as at the end of 2015/16. The Council relied heavily on technology to deliver its services and the Fund allowed 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 recommended 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 £75.07M which was around £52.88M more than the level of General Capital Funding for the same period (£22.19M).  The £75.07M grant funding was made up of £32.76M 21st Century Schools grant, £249K Tackling Poverty grant, £678K Renewal Area grant, £2.374M Flood Defence grants, £13.8M Major Repairs Allowance grant and £25.211M Five Mile Lane Improvement grant.  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 had to 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 had to ensure that the key objectives of the Prudential Code were complied with. The Council had to ensure that its capital investment plans:

 

  • were affordable;
  • All      external borrowing and other long term liabilities were within a prudent      and sustainable level; and
  • 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 had to 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 (WG) 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, 2016 was £93.971M which was made up of £6.690M for Highway Improvements under the Local Borrowing Initiative, £7.444M for 21st Century Schools Programme, £14.571M Housing Improvement Programme, £63.156M Housing Subsidy Buyout and the Local Government Borrowing Initiative for 21st Century Schools £2.110M. After allowing for repayments the balance was expected to be £91.639M at 31 March, 2016.

 

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

 

Scheme

2016/17

2017/18

2018/19

2019/20

2020/21

Total

 

 

£000

£000

£000

£000

£000

£000

Affordability

21st Century Schools Local Borrowing Initiative

528

0

0

0

 

 

0

528

Budget transferred into RSG from 2015/16

Housing Improvement Programme

23,191

2,415

4,630

1,890

 

 

1,510

 

 

33,636

Repayments factored in as part of Housing Business Plan

Total

23,719

2,415

4,630

1,890     

 

1,510

34,164

 

 

 

 

Total new Prudential Borrowing over the next 5 years was estimated at £34.164M of which £33.636M related to the Housing Improvement Programme.

 

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

 

At the end of the Capital Programme period (31st March, 2021) the outstanding prudential borrowing taking into account repayments was expected to be £12.9M General Fund and £100.510M HRA.

 

Proposed Capital Programme 2016/17 to 2020/21

 

Following consideration of all of the above, the proposed 5-year Capital Programme 2016/17 to 2020/21 was attached at Appendix A. Since the Initial Capital Programme Proposals were prepared, a small number of amendments were received and were outlined below.

 

Cabinet on 5 October, 2015 considered a report on the 'Proposal to Transform Secondary Education in Barry' (minute C2931 refers) and resolved to progress recommendation 4 "That 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 requirement be presented to Cabinet for further consideration in due course".  A further report was brought to Cabinet on 11 January, 2016 (minute C3042 refers) which included a list of works to be undertaken and resolved "That the inclusion of £210K into the 2015/16 Capital Programme and £690K into the 2016/17 Capital Programme, funded from the School Investment Reserve be approved."

 

Several schemes had been included in Appendix A which would be funded from S106 monies.  These included, Fferm Goch Public Open Space £47k, Maendy Pedestrian Sustainable Transport Improvements £81k, Improvement works at Heol Llidiard Community Hall £37k and Mobile vehicle signs £35k.

 

As part of the transport review the use of vehicles by the Authority had been extensively reviewed, which 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 and differed from the Initial Capital Programme Proposals report which went to Cabinet in November 2015:

 

 

2016/17

2017/18

2018/19

2019/20

2020/21

 

£000's

£000's

£000's

£000's

£000's

Original Expenditure

1,453

616

1,338

800

800

Revised Expenditure

1,140

1,140

1,140

1,140

1,128

 

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.

 

The provisional capital settlement did not decrease by the 10% predicted in the Initial Capital Programme Proposals.  Given the low level of All Services Asset Renewal funding shown against the Resources Directorate it was proposed that the All Services Asset Renewal budget was increased year on year by the difference.  However, £100k of this increase in 2016/17 had been allocated to the Social Services Asset Renewal budget in order for them to prioritise urgent works to their buildings as required.

 

Slippage requested through Capital Monitoring reports at Cabinet on 25 January and 8 February, had been included in Appendix A of the report.

 

The Financial Strategy

 

The Capital Programme was set having regard to the Council’s corporate priorities, which were included in the draft Corporate Plan through the 4 well-being outcomes which were: -

 

  • An      Inclusive and Safe Vale
  • An      Environmentally Responsible and Prosperous Vale
  • An      Aspirational and Culturally Vibrant Vale
  • An Active      and Healthy Vale

 

These outcomes demonstrated the Council’s commitment to the Well-being of Future Generations Act which aimed to improve the social, economic, environmental and cultural well-being of Wales and ensured that the needs of the present were met without compromising the ability of future generations to meet their own need.  Examples were:-

 

  • Continued      investment in housing through the Housing Improvement Programme to achieve      the Welsh Housing Quality Standard and with further expenditure planned as      outlined in the Housing Business Plan;
  • Additional      funding of £600k made available between 2015/16 and 2016/17 for further      regeneration schemes as part of the Barry Regeneration Partnership, which      includes refurbishment of local parks;
  • Further      investment in schools through the School Investment Programme with Band A      underway and future development under Band B anticipated to commence in      2019/20; and
  • Additional      funding being provided in 2016/17 and 2017/18 for Disabled Facilities      grants.

 

In the Final Capital Programme Proposals 2015/16 to 2019/20 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).

 

£130K for Flood Management schemes at Boverton had been   carried forward into the 2016/17 Capital Programme.  On-going funding for Flood Risk Management   was provided for in the five year capital programme at £100K per annum, as   detailed in paragraph 64 of the report.

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 £400K had   been allocated to the Education service in 2016/17 of which £380K had been   brought forward into 2015/16 to carry out urgent works.   An additional £400K had been allocated   each year from 2017/18 to 2019/20.  An   additional £500K had been added to Visible Services in 2016/17 for Highways   Resurfacing and Maintenance Works.  A   £200K asset renewal budget in 2016/17 and £100K per annum between 2017/18-2020/21   had been allocated to Social Services in order for them to prioritise urgent   works to the buildings.  The All   Services asset renewal budget had also been increased as detailed in   paragraph 39 of the report.

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 £100K each   year for the Regeneration Fund as detailed in paragraph 65 of the report.

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 2016/17 an allocation of £500K had been made for match   funding the Renewal Area Grant. 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 the Band A 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 the 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 was via a specific grant and from 2015/16 the funding had been 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.

 

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.   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 12 January, 2015 (Minute C2607 refers), therefore, the total funding envelope was now £30.848m. This excluded the £650k added to the Capital Programme for Llantwit Learning Community requested as part of the Initial Capital Programme Proposals report.

 

The Band A Programme was progressing well. Phase one of the Penarth Learning Community scheme was complete and the Learning Community was occupied.  Phase two was complete apart from the seeding of the grass pitches which would commence at Easter.  Ysgol Nant Talwg and Ysgol Dewi Sant were complete and the schools were now occupied. Phase three of Ysgol Gwaun Y Nant was completed in November 2015 and the school was occupied in January 2016, the woodland area at the rear of the site was completed apart from the seeding which would commence in the spring.  The building works at Oakfield were now complete and the school was occupied, the increased area to the playing field was to be seeded in the spring.   The Llantwit Learning Community scheme was underway and works started on site in August 2015.  The Colcot Primary scheme was due to start in 2016/17.

 

The following table showed the planned spend on the Education Capital Programme from 2016/17 to 2020/21 incorporating expenditure under Band A and Band B schemes funded under 21st Century Schools Programme. Gross Expenditure totaled £80.637M.

 

Proposed Education Programme to 2020/21

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 &   Oakfield

47

0

0

0

0

47

Colcot

250

250

0

0

0

500

Barry Secondary School  

0

750

0

0

0

750

Eagleswell Demolition

300

0

0

0

0

300

Band B Schemes

0

0

0

18,361

32,927

51,288

St Cyres Lower School   Marketing and Disposal

65

0

0

0

0

65

Eagleswell Marketing   and Disposal

83

5

0

0

0

88

Barry Comprehensive   School Internal and External Refurbishment Works

690

0

0

0

0

690

Asset Renewal

620

1,000

1,000

1,000

600

4,220

Asset Renewal   Contingency

50

50

50

50

50

250

Rhoose S106

0

1,500

1,762

0

0

3,262

Gwenfo Primary   Expansion

454

11

0

0

0

465

St Brides Expansion

346

10

0

0

0

356

Victorian Schools

1,200

800

0

0

0

2,000

Schools ICT Loans

200

200

200

200

200

1,000

Schools Capital Loan   Schemes

200

200

200

200

200

1,000

Total

17,592

6,016

3,241

19,811

33,977

80,637

 

The total allocation for Victorian Schools between 2016/17 and 2020/21 was £2M to support works across 21 Victorian Schools to address the existing issues with lath and plaster and masonry deterioration. Work was currently being carried out by Property Services to assess the works required between 2016/17 and 2017/18.

There was an asset renewal budget of £1m per annum from 2016/17 to 2019/20 however, £380k of this amount in 2016/17 had been approved to be brought forward into 2015/16.  £300k of which was detailed in the Initial Capital Programme Proposals report and £80k which was approved by Delegated Authority to increase the budget for Ysgol Bro Morgannwg Kitchen Roof Renewal in 2015/16.  In addition there was a £50k asset renewal contingency budget in each year. From 2020/21 the asset renewal budget had to reduce to the original £600k allocation due to increased constraints on resources and the 21st Century Schools Band B Programme. Education in consultation with Property Services, allocated this budget in year to various schemes including rolling programmes of boiler and toilet renewal.

Band B Schemes were expected to commence in 2019/20 and in December 2014 the Council submitted proposals for a number of schemes to Welsh Government. 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 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 address the condition of school buildings in various areas across the Vale; and

Rationalisation of school buildings situated on split sites. 

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

The Education Capital programme was anticipated to be 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

1,155

9,897

Capital   Receipts

4,574

5

0

1,404

7,581

13,564

Other   Reserves and Revenue Contribution

0

0

0

1,000

0

1,000

School   Investment Reserve

2,293

1,665

290

1,397

3,391

9,036

School   Rationalisation and Improvements Reserve

200

200

200

200

200

1,000

IT   Fund

200

200

200

200

200

1,000

Prudential   Borrowing

528

0

0

0

0

528

Total   Internal Funding

12,388

3,870

1,879  

5,361

12,527

36,025

S106   Agreements

769

1,021

1,362

7,700

1,000

11,852

Welsh   Government Grant

4,435

1,125

0

6,750

20,450

32,760

Total   Funding

17,592

6,016

3,241

19,811

33,977

80,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Business Plan would be submitted to Welsh Government in February 2016, 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 2016/17 had not yet been announced by the Welsh Government but the assumed budget in Appendix A remained at £2.760M p.a., as received in 2015/16.

The latest Business Plan projections would be reported to Cabinet on 22 February, 2016 before being brought to Council for approval on 2 March, 2016. 

The Final Capital Programme Proposals reflected the level of works required to meet and maintain WHQS, and potential investment in new build and regeneration schemes, as per the latest Plan. 

It was expected that WHQS would be attained by April 2017, with on-going work required to maintain the standard based on component lifecycles.  In addition the latest Housing Improvement Programme included new build and regeneration work of £22.53M between years 2016/2017 and 2020/2021.

The budget for the Housing Improvement Programme was shown as one line in Appendix A, this would be allocated to schemes in the new financial year through a Delegated Authority request.  The funding of the programme had been amended since the Initial Capital Programme Proposals in November 2015 and the changes were detailed below and reflected the updated work profiles based on the revised Housing Business Plan and slippage from 2015/16.

 

Original Funding

2016/17 £'000's

2017/18 £'000's

2018/19 £'000's

2019/20 £'000's

2020/21 £'000's

Housing Reserves

3,910

3,767

4,776

4,809

0

MRA Grant

2,760

2,760

2,760

2,760

0

Unsupported Borrowing

19,434

1,688

3,222

784

0

Total Budget

26,104

8,215

10,758

8,353

0

   

Revised Funding

2016/17 £'000's

2017/18 £'000's

2018/19 £'000's

2019/20 £'000's

2020/21 £'000's

Housing Reserves

    2,931

2,959

3,286

3,619

4,095

MRA Grant

2,760

2,760

2,760

2,760

2,760

Unsupported Borrowing

23,191

2,415

4,630

1,890

1,510

Total Budget

28,882

8,134

10,676

8,269

8,365

 

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 2015/16 for Flood Risk Management Schemes at Boverton, and Llanmaes.

 

A sum of £624K (including slippage from 2015/16) in 2016/17 and £300K from 2017/18-2020/21 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 £100K had been allocated each year to fund regeneration initiatives including feasibility studies. A sum of £49K had been carried forward from 2015/16 into 2016/17 for feasibility studies into future improvements at Penarth including the Esplanade.

 

Funding for Disabled Facilities Grants of £5.35M had been provided in total over the 5 years.

 

After presenting this item, the Leader highlighted paragraph 78 of the report that stated “The Section 151 Officer considers that the estimated costs of unsupported borrowing are both prudent and sustainable”.

 

This was a matter for Executive and Council decision

 

Cabinet, having considered the report and all the issues and implications contained therein

 

RESOLVED –

 

That the following be recommended to Council:

 

(1)       T H A T the final budget proposals for the Capital Programme for the years 2016/17 to 2020/21 as set out in Appendix A as attached to the report be approved.

 

(2)       T H A T delegated authority be granted to the Managing Director and the Head of Finance, in consultation with the Cabinet Member responsible for Finance, to make additions, deletions or transfers to or from the 2016/17 to 2020/21 Housing Improvement Programme as appropriate.

 

(3)       T H A Tdelegated authority be granted tothe Managing Director and the Head of Finance, in consultation with the Cabinet Member responsible for Finance, to make additions, deletions or transfers to or from the 2016/17 to 2020/21 Asset Renewal budgets as appropriate.

 

(4)       T H A T delegated authority be granted to the Managing Director and the Head of Finance, in consultation with the Cabinet Member responsible for Finance, to make additions, deletions or transfers to or from the 2016/17 to 2017/18 Victorian Schools budget as appropriate.

 

(5)       T H A Tthe policy for making Minimum Revenue Provision in 2016/17 be approved.

 

Reasons for decisions

 

(1)       To set and approve future capital programmes to 2020/21.

 

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

 

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

 

(4)       To enable the Victorian Schools budget to be managed effectively.

 

(5)       To agree the basis of the Minimum Revenue Provision calculation for 2016/17.

 

 

Report to Cabinet

 

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