The Committee are invited to consider the report and to make any appropriate recommendations to Cabinet.
Minutes:
The Assistant Director presented the report and explained that the report provided details of the outturn of the 2014/2015 Capital Programme and outlined amendments and rephrasing to the spending on schemes, revising the programme for 2015/2016. The Capital Programme outturn for 2014/2015 totalled £11,040,092 against an approved budget of £13,715,050. It was explained that it had been necessary to rephrase a total of £3,233,350 of scheme costs to future years. Capital receipts generated in the year totalled £667,000 of which £663,376 were useable. Members were informed that the capital resources available to fund expenditure in 2014/2015 were detailed in section 3 of the report.
The Committee’s attention was drawn to the following sections of the report:
· Capital Programme 2014/2015.
· Financing of the Capital Programme 2014/2015.
· Minimum Revenue Provision.
· Capital Programme 2015/2018.
· Capital Resources 2015/2018.
· Financial Implications.
· Risk Implications and Sensitivity Analysis.
In response to questions from Councillor Middleton regarding the useable capital receipts generated in 2014/2015 relating to the General Fund – Land, the Assistant Director referred the Committee to page 26 of the Agenda which provided details of the revised estimated capital resources for 2014/2018 updated after funding the 2014/2015 Capital Programme, and included amendments and rephrasing.
Councillor Gourlay referred to page 21 of the Agenda – budget provision of £116,760 to be carried forward to 2015/2016 to meet the cost of the on-going vehicle replacement programme and asked if existing vehicles were sold to contribute towards the replacement cost. In response, the Assistant Director explained that the £116,760 was the replacement cost of the existing vehicles which would be purchased through unsupported borrowing. The Assistant Director advised that if the Service Manager had indicated the vehicles could be used for a longer period than originally planned, then it was possible the replacement of the vehicles would be deferred for an agreed period.
Councillor Devereux asked how much capital spend was being deferred from 2014/2015 to 2015/2016. In response, the Assistant Director drew Members’ attention to page 19 of the Agenda which showed details of the rephrasing of the Capital Programme 2015/2016.
Following further questions from Councillor Devereux regarding the capital spend being deferred and the impact on the precept and council tax, the Assistant Director explained that the Council’s spend was not funded by Capital, but revenue. Capital and revenue spends were kept separate. If the Council had an underspend, the Council would look at to invest any surplus money in short term investments.
In response to questions from the Chairman, Councillor Humphrey on unsupported borrowing as set out on page 23 of the Agenda, the Assistant Director explained that in relation to the NORA Joint Venture project the Council had borrowed funds in advance of capital receipts generated from sales. It was noted that the Council mostly used short term borrowing.
In response to questions from Councillor Gourlay regarding Alive Leisure financing their own projects, etc. the Assistant Director explained that the Borough Council had an arrangement with the Leisure Trust in that the Council leased the premises to Alive Leisure; therefore the Council was responsible for repairs. The arrangement with the Leisure trust brought VAT efficiencies to the Council. Any capital projects would remain in the Council’s Capital Programme.
Councillor Blunt asked if audits of projects were taken to compare the estimated costs against the original cost. In response, the Assistant Director explained that a special audit was not undertaken, but that there were a number of project groups that looked at lessons learnt after a project had been completed. The Chairman, Councillor Humphrey suggested that the Committee receive a presentation on project management to include cost controls, etc.
The Chairman, Councillor Humphrey referred to the replacement of the microphones at the Town Hall and the Committee Suite. He added that with regard to the Town Hall the problem appeared to be the acoustics and asked if this had been considered. In response, the Chief Executive advised that the Town Hall had Listed Building status and explained that he would check if the issues raised by Councillor Humphrey regarding the acoustics had been previously looked at.
In response to a comment from the Chairman, Councillor Humphrey regarding the figures relating to Sainsbury Hardwick original allocation and expenditure to 31 March, the Assistant Director explained that the information would be deleted.
Councillor Middleton referred to page 41 of the Agenda and asked if the Section 106 contribution was a one-off payment. In response, the Assistant Director explained that that it was a one-off contribution as part of the planning permission and was received in a lump sum and held in reserves.
RESOLVED: The Panel support the recommendations to Cabinet as follows:
1) That Cabinet note the outturn of the capital programme for 2014/2015 of £11,040,092.
2) That the financing arrangements for the 2014/2015 Capital Programme be approved.
3) That Cabinet approve the revised 2015/2018 Capital Programme as detailed in the report.