Contact: Bevis Ingram 01962 847508 [email protected] and
Stuart Dorward 01962 846110 [email protected]

1 Summary

1.1 This report proposes the capital programme for 2006/07 to 2009/10 (shown as Appendix 1).

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

1 Introduction

1.1 The following guideline limits were set by Cabinet at its meeting on 19 December 2005 for the locally resourced programme for Recreation and Heritage.

1.2 The guidelines include an addition of 2.5% for inflation, in line with the non-pay inflation assumption for the revenue budget.

1.3 Executive Members have been requested to exemplify how 2.5% efficiency improvements are being achieved. As with new revenue proposals, new capital schemes added to the programme should be accompanied by an outline business case demonstrating how performance will be improved and value for money achieved.

1.4 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.

1.5 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.

1.6 In addition, Executive Members may propose additional schemes funded from:

· use of Executive Member's share of capital receipts obtained in 2004/05 as allocated by the Cabinet in June 2005 (if not already used for the 2005/06 programme)

· anticipating their share of capital receipts obtained in 2005/06 provided the receipt has actually been received.

2 Capital programme 2006/07 to 2009/10 - locally resourced schemes

2.1 The capital programme for 2005/06 included the provision for Winchester Cultural Centre, and the core programme was supplemented by capital receipts from property disposals.

2.2 The core programme is modest, at £611,000, and its main purposes are to:

· improve the condition of buildings and property, aimed at maximising usage of facilities

· make facilities more attractive to users and better able to cater for their needs

· invest in new and improved ways of providing services, principally through ICT

· support and encourage the voluntary sector, mainly through support for community buildings and village halls

· comply with health and safety and disability discrimination legislation and requirements.

2.3 At this stage, it is not proposed to supplement the capital programme through capital receipts. However, every effort will be made to identify assets which are surplus to requirements and which could therefore be disposed of without an adverse effect on services. The intention would be to seek approval to the retention of 100% of any such receipts to supplement the programme.

2.4 It is proposed that the majority of the four-year programme should not be allocated to individual projects for category of spending until March when:

· the capital receipts position is finalised

· the service planning process is complete and projects can be ranked according to priority.

2.5 It is, however, proposed to allocate some of the 2006/07 to 2008/09 programmes to known commitments, which are:

· Winchester Cultural Centre - in October 2005, Cabinet requested that the Executive Members for Policy and Resources and Recreation and Heritage make the necessary financial provision for additional works up to a maximum of £800,000. This is subject to the outcome of the sale of the Library Headquarters buildings and site at North Walls. In the case of Recreation and Heritage, the commitment involved is £400,000 spread over three years of the programme

· the revenue budget report elsewhere on the agenda recommends the addition of £50,000 for the Argoed Llwyd dining room extension and £75,000 for a climbing wall at Calshot Activity Centre. It is intended to cover the balance of this £150,000 project from Calshot's revenue budget in 2006/07.

· the Directors of Recreation and Heritage and Property, Business and Regulatory Services are in discussions about a jointly funded programme of improvements in libraries. It is estimated that this could require Recreation and Heritage to invest £80,000 per year in the first two years of the programme.

3 Capital programme summary

3.1 Taking into account the capital programme and the allocations outlined above, the position would be:

4 Revenue implications

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

	Full year cost
	Current expenditure	Capital charges
	£'000	£'000
2006/07	30	32
2007/08	30	32
2008/09	30	32
2009/10	30	32
Total	120	128

4.2 The total revenue implications for the four years of the starts programme, including capital charges, represent a real term increase of 0.6% over the 2005/06 original budget of this service.

5 Impact assessment

5.1 In completing this report, account has been taken of the Corporate Equalities and Race Scheme.

Recommendation

That the Executive Member approves the capital programme 2006/07 to 2009/10 for submission to Cabinet

Section 100 D - Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have 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.

None

Appendix 1

Recreation and Heritage Services

Capital Programme 2006/07 to 2009/10