Contact: Stuart Dorward (01962) 846110, e-mail: [email protected]

Bevis Ingram (01962) 847508, e-mail: [email protected]

1. Summary

1.1 This report proposes the capital programme for 2008/09 to 2010/11 (shown as Appendix 1).

1.2 Decisions on the capital programme will support the County Council's corporate priorities, as indicated in the detailed capital programme attached at Appendix 1.

2. Locally resourced capital programme

2.1 The following guideline limits were confirmed by Cabinet at its meeting on 17 December 2007 for the locally resourced programme for Recreation and Heritage. The guidelines have been set for a three-year programme for 2008/09 to 2010/11, instead of the four-year programme in recent years, to match the period covered by the Government's Comprehensive Spending Review and three-year revenue grant settlement.

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

2.3 Executive members may vary the guidelines between years provided their total three-year guideline is not exceeded and bunching of payments in any one year or front-loading is avoided. The Recreation and Heritage capital programme available is lower in 2010/11 as £100,000 was transferred to 2007/08.

2.4 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 priorities. 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 or existing capital resources in the years in which cost is incurred.

2.5 In addition, executive members may propose additional schemes funded from:

· use of executive member's share of capital receipts obtained in 2006/07 as allocated by the Cabinet in June 2007 (if not already used for the 2007/08 programme)

· anticipating their share of capital receipts obtained in 2007/08 provided the receipt has actually been received.

2.6 The finance monitoring report in September referred to several capital receipts available to supplement the Recreation and Heritage capital programme. The following have been added to the capital cash limit for 2008/09:

2.7 A report on this agenda details the County Council's successful bid to the Big Lottery Fund, Community Libraries Programme. The capital grant is £1m and the County Council is required to commit £202,000 during the period of the programme. The Recreation and Heritage capital programe includes the total £1,202,000 investment.

2.8 External funding of £170,000 has been secured for the provision of a new gallery at the Willis Museum in Basingstoke, and this project is also now included in the capital programme. Similarly a scheme to update and improve the education facilities at Milestones Museum has attracted £40,000 of external funding, and this is included in the programme.

3. Proposed capital programme 2008/09 to 2010/11 - locally resourced schemes

3.1 The annual capital programme, which in recent years has been supplemented to fund the Gosport and Winchester Discovery Centres, is required to support the County Council's priorities by:

· Improving the condition of building and property, aimed at maximising their use.

· Making facilities more attractice to users and better able to cater for their needs.

· Investing in new and improved ways of working, mainly through ICT.

· Supporting and encouraging the voluntary sector, mainly through support for community buildings and village halls.

· Complying with health and safety and disability discrimination.

3.2 This section outlines the key allocations which it is proposed to add to the approved capital programme to meet the above aims.

3.3 The Woolston Road capital receipt is to be invested locally. £200,000 is allocated to Sir George Staunton Country Park. If a lottery bid to improve the Park's landscaping and facilities is approved, this sum will be required for match funding. If the application is not successful, the allocation would be used for more modest developments. The allocation of £202,000 as match funding for the successful Community Libraries lottery application will enable approximately £1 million to be invested in the Havant, Waterlooville and Hayling Island libraries. An element of the smaller allocations in the capital programme will also be spent in the area.

3.4 A further £245,000 is allocated to library refurbishments to continue with the programme of making the County Council's libraries more attractive to the public.

3.5 The sale of the Library Headquarters building (North Walls) is scheduled for 2008. Most of the staff currently based in North Walls will be relocated in leasehold premises in Moorside, Winchester and the others in Mottisfont Court, Winchester. A provision of £150,000 has been made for the one-off costs associated with the move and fit-out of the Moorside premises.

3.6 A programme of fire precautions works is being completed in the Museums Service. The next priority is the Library Service, and the programme includes an allowance of £195,000 for this essential work.

3.7 A balance of £48,000 remains unallocated in the 2010/11 programme as a contingency against unforeseen requirements and costs.

3.8 Earlier in January, Buildings, Land and Procurement Panel considered a report on Project Approvals which, amongst other issues, outlined the position on Basingstoke Discovery Centre. Following a feasibility study, a project cost of £3 million is anticipated, and an outline funding proposal suggested that Recreation and Heritage would fund £2m from sponsorship and the sale of assets. The balance of funding would be from corporate resources. As details become clear, including the assets to be sold, a further report will be presented in order to obtain the necessary approvals.

4. Capital programme summary

4.1 The programme for 2008/09 totals £2,815,000 as follows:

£000

Guideline 640

Capital receipts (para 2.6) 965

External funding (2.7 and 2.8) 1,210

____

2,815

The programmes for 2009/10 and 2010/11 are at guideline levels, namely:

£000

2009/10 641

2010/11 552

5. Revenue Implications

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

5.2 The total revenue implications for the three years of the starts programme, including capital charges, represent a real term increase of 0.6% over the 2007/08 original budget of this service.

6. Impact assessment

6.1 The proposals in this report are derived from departmental service plans and are in accordance with the budget strategy and the County Council's financial management policy. An impact assessment of the departmental service plans and the financial management policy has been carried out and the proposals in this report are not considered to be discriminatory.

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