Agenda item

Report of the Director of Finance and Support

1.      Cabinet is to recommend to Council that they approve

a.      The draft capital strategy for 2010-11 to 2012-13, as set out in Annex A.

b.      The capital programme for 2010-11, including future year commitments, as set out in Annex B.

c.      The capital financing principles to be a applied in 2010-11, as set out  in the Capital Strategy (Annex A) pages 29-31

d.      The proposed financing of the capital programme for 2010-11 and future years, as set out at paragraphs 3.2.12 and Annex C.

e.      That Cabinet be authorised, once the programme has been set, to approve new capital schemes and variations to existing schemes during 2010-11, subject to the funding being available and the schemes being in accordance with the objectives and priorities of the Council.

2.      Cabinet has noted:

·              The contribution of each new scheme in the 2010-11 capital programme to the Council’s corporate priorities for 2010-2013, as set out in Annex D.

·              The risks outlined at paragraph 4.2.

Councillor Clarke addressed Cabinet and added his appreciation to the Environmental Service teams for their recent achievements during bad weather.  He asked Cabinet to be mindful of this when they planned to reduce staffing levels in this area. He then referred to the proposed expenditure for repairs to the Grosvenor Centre Car Park and asked why money that should be paid by Legal and General was showing in the Council’s budget figures.  He called for more transparency in relation to the Grosvenor Centre deal. He then asked for clarity regarding an amount of Section 106 money set aside for work in Upton Country Park.

Councillor Mildren addressed Cabinet. He referred to Annex C of the report, forecasting zero capital receipts over a 3-year period and also queried capital directives, wondering if they were to cover the cost of redundancies.

Councillor Perkins, as relevant Portfolio Holder, presented the report to Cabinet and outlined its purpose.  He explained that the capital programme was in line with corporate priorities and fulfilled statutory obligations and he highlighted a number of issues addressed in the appendices.  Referring to the Upton Park Section 106 money, Cabinet was advised that the 106 funds received from the applicant/developers had been held in reserves pending development of the projects and would now be taken our of the reserves to fund the projects.  With regard to the Grosvenor Centre car park improvement costs, these had been the subject of an earlier detailed report to Cabinet which had set out the existing lease obligations and the urgent need to carry out the works.  Cabinet was advised that terms within the Development Agreement allowed for these capital costs to be repaid to the Council when the Agreement went ‘unconditional’.

Councillor Church commented that the details of the Grosvenor Centre deal had been fully and openly discussed in public at a Cabinet meeting the previous autumn and councillors had been given opportunities at that time to question aspects of it.  He pointed out that the improvements were necessary owing to a number of years of underinvestment.

Councillor B Hoare highlighted the significant investment in disabled facilities in both private and council stock. He also stressed the need to work with Adult Services to identify need and to provide accommodation support, which would reduce the growing demand for home adaptations.

RESOLVED

1.      That the Cabinet recommend to Council that they approve

a.      The draft capital strategy for 2010-11 to 2012-13, as set out in Annex A.

b.      The capital programme for 2010-11, including future year commitments, as set out in Annex B.

c.      The capital financing principles to be a applied in 2010-11, as set out  in the Capital Strategy (Annex A) pages 29-31

d.      The proposed financing of the capital programme for 2010-11 and future years, as set out at paragraphs 3.2.12 and Annex C.

e.      That Cabinet be authorised, once the programme has been set, to approve new capital schemes and variations to existing schemes during 2010-11, subject to the funding being available and the schemes being in accordance with the objectives and priorities of the Council.

2.      That Cabinet note:

·              The contribution of each new scheme in the 2010-11 capital programme to the Council’s corporate priorities for 2010-2013, as set out in Annex D.

·              The risks outlined at paragraph 4.2.