Decision details

To consider the report of the Cabinet Member for Resources seeking to set out the latest estimated overall financial position on the General Fund Capital Programme for 2012/13 to 2015/16.

(i)  Approve the revised General Fund Capital Programme, which totals £140.3M (as detailed in paragraph 4) and the associated use of resources.

(ii)  Note the changes to the programme as summarised in Appendix 2 and described in detail in Appendix 3.

(iii)  Note the slippage and re-phasing as described in detail in Appendix 3.

(iv)  Note the transfer of the Southampton New Arts Complex (SNAC) scheme from Housing & Leisure Services Capital Programme to the Leader’s Capital Programme.

(v)  Add £400,000 to the Children’s Services Capital Programme in 2013/2014, to be funded by Council Resources, to ensure that the expansion of Bassett Green Primary school achieves the BREEAM (Building Research Establishment’s Environmental Assessment Method) rating of excellent, in accordance with the Council’s planning policy.

(vi)  Add £480,000 to the Resources Capital Programme in 2013/14 for the demolition of Oaklands school to be funded by direct revenue financing.

(vii)  Delegate authority to the Chief Financial Officer, following consultation with the Cabinet Member for Resources to add a further £100,000 to the Resources Capital Programme for the demolition of Oaklands school if required to be funded by direct revenue financing, bringing the total scheme up to a maximum of £580,000.

(viii)  Add £2,821,000 to the Environment & Transport Capital Programme in 2013/2014 for the Roads Programme to be funded by direct revenue financing.

(ix)  Add £1,616,000 to the Environment & Transport Capital Programme in 2013/2014 for Integrated Transport schemes to be funded by government grants.

(x)  Add £1,701,000 to the Environment & Transport Capital Programme in 2013/2014 for Highways Maintenance schemes to be funded by government grants.

(xi)  Note that additional temporary borrowing taken out in 2010/11 and 2011/12 due to cash flow issues, totalling £11.9M, is expected to be repaid by the end of 2013/14 when anticipated capital receipts are finally forecast to be received.

(xii)  Note that the revised General Fund Capital Programme takes into account the Comprehensive Spending Review (CSR) for 2011/12 and future years as updated by the provisional Local Government Finance Settlement announced in December 2012.

(xiii)  Note that in addition to the forecast capital receipts that are assumed as a key element of funding the capital programme presented for approval, there will be additional receipts which will flow from the enhanced sale of assets programme as this comes to fruition.  Towards the end of 2013/14 it should be possible to better estimate the amount and timing of these forecast additional receipts.

(xiv)  Note the financial and project issues which are set out in paragraphs 31 to 36 and detailed in Appendix 3 for each Portfolio.

The update of the Capital Programme is undertaken twice a year in accordance with Council Policy and is required to enable schemes in the programme to proceed and to approve additions and changes to the programme.

The update of the Capital Programme is undertaken within the resource constraints imposed on it.  No new schemes can be added unless specific additional resources are identified.  Alternative options for new capital spending are considered as part of the budget setting process.