Agenda item - FIRST QUARTER CAPITAL MONITORING 2018/19

REPORT OF THE SERVICE DIRECTOR – RESOURCES

To update Cabinet on progress with delivering the capital programme for 2018/19.

RESOLVED:

(1) That the forecast expenditure of £15.857million in 2018/19 on the capital programme be noted and the adjustments detailed in table 3 which resulted in a net decrease on the working estimate of £0.958million be approved;

(2) That the adjustments to the capital programme for 2018/19 onwards as a result of the revised timetable of schemes detailed in table 2, decreasing the estimated spend in future years 2019/20 by £1.340million be approved;

(3) That the position of the availability of capital resources, as detailed in table 4, and the requirement to keep the capital programme under review for affordability be noted.

REASONS FOR DECISIONS:

(1) Cabinet is required to approve revisions to the capital programme;

(2) Cabinet is required to ensure that the capital programme is fully funded.

The Executive Member for Finance and IT presented the report of the Service Director – Resources in respect of First Quarter Capital Monitoring 2018/19. The following appendices were submitted with the report:

Appendix A – Capital Programme Summary 2018/19 Onwards;

Appendix B – Capital Programme Detail Including Funding 2018/19 onwards.

The Executive Member for Finance and IT drew attention to:

Paragraph 8.3 – Table 2 – Scheme Timetable Revision

· The forecast spend on property improvements reflected the work that was planned for the current year. Condition surveys would be reviewed and, if possible, the allocated budget in 2019/20 would be reduced.

· The Lairage Car Park was being monitored to ascertain the level of work required with any work required not due to commence until 2019/20 or later.

· All new casework for the Disabled Facilities Grant was being handled by Hertfordshire County Council

Paragraph 8.4 – Table 3 - Capital Schemes commencing in 2018/19

· Initial work had been undertaken on the business case for the extension of the Royston Leisure Centre. This was determined not to be financially viable within the current contract period and therefore would not be progressed.

Paragraph 8.5 – Table 4 – Funding the Capital Programme

· Current spending plans record that a very significant amount of the Capital would be spent on the Capital programme as it stood.

Some useable Capital receipts from the sale of assets were expected.

· The availability of third party contributions and grants to fund capital investment was continuously being sought.

Appendix A – John Barker Place, Hitchin

· It was not suggested that the funding set aside for this project should be removed from the capital programme at this point, however it was unclear when Settle would progress this project.

· It will be necessary, at some point, to consider whether this will be used and whether there was a better use for this funding

· It may be that we want to use the monies for our own property company.

Appendix A – Parking Infrastructure

· There were various entries regarding parking infrastructure

· It was important to be cognisant of the pressures on capital spend and be certain that spending on the right project

In response to questions and comments the Executive Member for Finance and IT advised that, in respect of Royston Leisure Centre, it was not appropriate to retain items in the Capital Budget for which there was no viable business case, however, he was happy to consider reinstating the project in a later year if a business case was made.

In respect of the Parking Strategy the Executive Member for Planning, Enterprise and Transport advised that they were working through phase 2 of the Strategy which recommended a number of changes regarding the Council’s parking. The current expenditure was based on the existing strategy, however, if the strategy were to change then the capital programme would need to be realigned. He suggested that only safety associated works be undertaken using the existing capital expenditure.

In respect of the proposed extension of Hitchin Swimming Pool car park, the Executive Member for Finance and IT acknowledged the decision made by the Planning Inspectorate that the proposal made was not appropriate. Officers were investigating alternatives for which these funds may be required, however if it was determined that there was no use for that money, then it would be removed from the capital programme.