Agenda item

(Cabinet Member with Special Responsibility Councillor Mace)

The Corporate Director (Finance and Performance) and Head of Financial Services submitted a joint report providing information on the General Fund Capital Programme, to allow Cabinet to make recommendations to Council on Council Tax levels for 2009/10.

The options and options analysis including risk assessment were set out in the report as follows:

Funding Assumptions and Achieving a Balanced Capital Programme

The broad options for achieving a balanced programme are set out below and are very much dependent on Members’ views on spending priorities.  As such, a full options appraisal and risk assessment cannot be completed until budget proposals are known in more detail.  That said, the basic options for achieving savings include:

• removing schemes from the draft programme, taking account of service needs and priorities;
• reducing proposed net expenditure on schemes, where possible;
• generating additional capital resources (e.g. receipts, direct revenue financing or borrowing), within affordable limits;
• deferring projects into later years – although this would not help with the overall five-year programme unless schemes were deferred until after 2013/14.

Should surplus resources be available, these could be used:

• to repay borrowing, or to reduce the call on the revenue budget;
• to fund new capital schemes;
• to make provision for other anticipated liabilities.

As referred to in earlier reports, setting a balanced capital programme is an iterative process, essentially balancing service delivery impact and aspirations against what the Council can (and is prepared to) afford.

In deciding the way forward, Cabinet is asked also to take into account the relevant basic principles of the Prudential Code, which are:

·         that the capital investment plans of local authorities are affordable, prudent and sustainable, and

·         that local strategic planning, asset management planning and proper options appraisal are supported.

The Officer preferred options are as set out in the recommendations of the report.

Councillor Mace proposed and Councillor Charles seconded:

“(1)      That Cabinet notes the latest position regarding the General Fund Capital Programme and supports in principle the funding assumptions from 2008/9 onwards as set out, but that these be reviewed in light of the further work underway.

(2)        That the outcome of the work ongoing as set out in the report, including the capital receipts review and updates on the issues outlined in sections 2 and 3 of the report, be fed into Star Chamber for initial consideration, in order that a fully balanced programme can be developed for formal consideration by Cabinet at its February meeting.

(3)        That the current capital position be referred on to Council for consideration.”

Members then voted as follows:

Resolved:

(8 Members (Councillors Archer, Blamire, Bryning, Burns, Charles, Gilbert, Kerr and Mace) voted in favour and 1 Member (Councillor Barry) abstained)

(1)               That Cabinet notes the latest position regarding the General Fund Capital Programme and supports in principle the funding assumptions from 2008/9 onwards as set out, but that these be reviewed in light of the further work underway.

(2)               That the outcome of the work ongoing as set out in the report, including the capital receipts review and updates on the issues outlined in sections 2 and 3 of the report, be fed into Star Chamber for initial consideration, in order that a fully balanced programme can be developed for formal consideration by Cabinet at its February meeting.

(3)               That the current capital position be referred on to Council for consideration.

Officers responsible for effecting the decision:

Corporate Director (Finance and Performance)

Head of Financial Services

Reasons for making the decision:

The decisions made allow Cabinet to make progress in developing its capital investment proposals and the supporting Investment Strategy.