Contact: name, Bevis Ingram, 01962 847508, e-mail [email protected]

Stuart Dorward, 01962 846110, e-mail [email protected]

1 Summary

1.1 This report proposes the capital programme for 2005/06 to 2008/09 (shown as Appendix 1).

1.2 The report is being presented to the Recreation and Heritage Policy Review Committee prior to its consideration by the Executive Member to allow members to make comments on the proposals.

2 Introduction

2.1 The following guideline limits were set by Cabinet at its meeting on 13 December 2004 for the locally resourced programme for Recreation and Heritage.

2.2 In the first year of the programme the guideline includes £2.05m ring fenced for the Winchester Cultural Centre project. The balance available to support other schemes in 2005/06 is therefore £442,000.

2.3 The guidelines include an addition of 2.5% for inflation, in line with the non-pay inflation assumption for the revenue budget. However, Executive members have been requested to identify cashable efficiency savings of up to 1.25%. The target for savings relating to this service's locally resourced capital programme are:

2.4 Executive members may vary the guidelines between years provided their total four-year guideline is not exceeded and bunching of payments in any one year or front-loading is avoided.

2.5 Executive members may propose supplementing their capital guidelines under the `prudential framework' agreed by Cabinet at its meeting on 24 November 2003, thereby integrating more closely decisions on revenue and capital spending in support of Corporate Aims. The additions may include:

· virement from the Executive member's revenue budget

· temporary unsupported borrowing, to provide bridging finance in advance of capital receipts or other contributions, with the cost of servicing the unsupported borrowing in the interim being met from the Executive member's revenue budget.

2.6 In addition, Executive members may propose additional schemes funded from:

· use of Executive member's share of capital receipts obtained in 2003/04 as allocated by the Cabinet in June 2004 (if not already used for the 2004/05 programme)

· anticipating their share of capital receipts obtained in 2004/05 provided the receipt has actually been received.

3 Capital programme 2005/06 to 2008/09

3.1 Previous reports on the Recreation and Heritage capital programme have highlighted the need for significant capital investment to:

· reverse the decline in the physical condition of buildings and property which, if continued, would bring about further reductions in usage and visits

· restructure and remodel facilities to make them more attractive and better able to cater for the needs of existing and potential users

· enable services to be delivered in new ways to meet user expectations, including developing ICT infrastructure to meet e-government targets and underpin service improvement.

3.2 The addition of £4.8m to the Recreation and Heritage capital programme for Discovery Centres has allowed the major projects in Gosport and Winchester to go ahead. The decision to reallocate £500,000 per year to the capital programme from the Library and Information Service revenue budgets for 2003/04 and 2004/05 has enabled improvements in 15 other libraries to be funded.

3.3 In 2004/05 the capital programme was boosted by £830,000 from the disposal of properties no longer required for operational purposes in Recreation and Heritage. This made possible increased allocations for countryside and rights of way improvements and provided significant extra funding to support work needed to comply with Health and Safety legislation and the Disability Discrimination Act in Recreation and Heritage premises, community buildings and village halls. Additionally, use of the prudential framework has allowed a project to go ahead to provide much needed new residential accommodation at Calshot Activty Centre.

3.4 These increased levels of investment cannot be maintained in 2005/06 and beyond from within the current capital guidelines. However, it is possible to support a bigger programme in 2005/06 from further property disposals.

3.5 The flats above the libraries at Bridgemary and Elson have been sold for a combined value of almost £200,000. Initially it was intended that these receipts would fund the purchase of additional land at Titchfield Haven nature reserve, but this could not be progressed. It is therefore proposed to recommend to the Executive Member - Policy and Resources to approve the retention of these receipts to supplement the Recreation and Heritage capital programme in 2005/06 and to use these receipts to continue the programme of library refurbishments into 2005/06.

3.6 In addition, the disposal of a property no longer needed for a service tenancy would yield a further capital receipt estimated at £400,000. It is proposed, therefore, that the Executive Member - Policy and Resources is requested to give approval to the retention of 100% of this receipt to further supplement the 2005/06 programme.

3.7 The report on the revenue budget elsewhere on the agenda identifies a requirement to transfer funding from capital to revenue in 2004/05. It will therefore be necessary to make a compensating transfer from revenue to capital in 2005/06 to allow the reinstatement of capital schemes deferred in 2004/05.

3.8 The proposed programme for 2005/06 to 2008/09 capital programme set out in Appendix 1 assumes that the existing guidelines can be supplemented in the manner indicated above. For 2005/06 it includes the £2.05m specifically earmarked for the Winchester Cultural Centre. Further Discovery Centre developments in subsequent years will need to be considered in the context of the County Council's priorities for capital investment. The 2005/06 programme also includes a further phase of library improvements funded from capital receipts.

3.9 The recurring elements of the capital programme have not been allocated at this stage pending the outcome of the recommendation to the Executive Member - Policy and Resources on the retention of 100% of capital receipts. Detailed proposals will be made to the Executive Member - Recreation and Heritage when the final position on the guidelines is known and based on priorities identified in the Recreation and Heritage Department's service plans. In framing these proposals, account will be taken of the following factors:

· resources are allocated to meet known commitments resulting from earlier decisions of the Executive Member

· appropriate resources are allocated to meet legal obligations under Health and Safety and disability legislation

· an appropriate balance is kept between maintaining the condition and value of existing assets and investing in new developments

· the need to maintain some contingency to support emerging priorities and unforeseen requirements.

3.10 A bid has been submitted to the Heritage Lottery Fund for further developments at Sir George Staunton Country Park. If successful, additional match funding totalling approximately £113,000 will need to be set aside from the Recreation and Heritage capital programme over the next four years.

4 Capital Programme Summary

4.1 On the basis of the position outlined above, the total value of the capital programmes submitted for consideration for the four years to 2008/09 are:

5 Revenue Implications

5.1 The revenue implications of the proposed capital programme are as follows:

5.2 The total revenue implications for the four years of the starts programme, including capital charges, represent a real term increase of 1.6% over the 2004/05 original budget of this service.

Recommendation

1. That the Executive Member approves the capital programme 2005/06 to 2008/09 for submission to cabinet.

2. That a recommendation is made to the Executive Member for Policy and Resources that:

a) Capital receipts totalling £200,000 relating to library flats at Elson and Bridgemary are added to the Recreation and Heritage capital programme for 2005/06.

b) Capital receipts to be identified in respect of a service tenancy estimated at £400,000, are added to the Recreation and Heritage capital programme for 2005/06.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1. Published works.

2. Documents which disclose exempt or confidential information as defined in the Act.

TITLE FILE

Appendix 1

Recreation and Heritage Services

Capital Programme 2005/06 to 2008/09