Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report :

EXECUTIVE SUMMARY

1) Summary of Decision Area:

1.1. This report seeks approval for submission of the proposed capital programme for 2009/10 to 2011/12 to the Leader and Cabinet.

1.2. The report has been prepared in consultation with the Executive Member and will be reviewed by the Culture and Communities Select Committee. It will be reported to the Leader and Cabinet on 6 February 2009 to make final recommendations to County Council on 19 February 2009.

2) Issues Covered in Report:

2.1. The report considers the schemes which it is proposed to include in the capital programme for 2009/10, 2010/11 and 2011/12.

2.2. The proposals contained in this report are derived from the departmental service plans which have been developed to support the priorities of the Corporate Strategy.

3) Recommendations:

It is recommended that:

3.1. The capital programme for 2009/10 to 2011/12 as set out in Appendix 1 be approved for submission to the Leader and Cabinet.

MAIN REPORT

1) Purpose of the Report:

1.1. This report sets out the proposed Recreation and Heritage capital programme for 2009/10 to 2011/12. This report has been prepared in consultation with the Executive Member and will be reviewed by the Culture and Communities Select Committee. It will be reported to the Leader and Cabinet on 6 February 2009 to make final recommendations to County Council on 19 February 2009.

2) Contextual Information:

2.1. In approving the medium term financial strategy on 27 October 2008, the Cabinet requested that executive members prepare proposals for:

· a locally-resourced capital programme for the three-year period from 2009/10 to 2011/12 within guidelines that spread the existing capital programme for 2009/10 and 2010/11 over three years. This is in recognition of the sharp decline in the expected availability of capital receipts over the next three years as a result of the condition of the housing market

· a programme of capital schemes supported by Government grants or supported borrowing in 2009/10 and 2010/11 and those expected to be supported in 2011/12, subject to limits restricting the take-up of Government supported borrowing approvals.

2.2. The medium term financial strategy is closely linked to the Corporate Strategy and the Corporate Business Plan to ensure that priorities are affordable and provide value for money and that resources follow priorities.

Key Issues

3) Locally resourced capital programme:

3.1. The cash limit guidelines for the locally resourced capital programme for the Recreation and Heritage service set by Cabinet are as follows.

		£000
	2009/10	438
	2010/11	379
	2011/12	408

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

3.3. 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.

3.4. 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.

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

· use of executive member's share of capital receipts obtained in 2007/08 as allocated by the Cabinet in June 2008 (if not already used for the 2008/09 programme)

· anticipating their share of capital receipts obtained in 2008/09 provided the receipt has actually been received.

4) Proposed capital programme 2009/10 to 2011/12 - locally resourced schemes:

4.1. Following the revision to the 2009/10, 2010/11 and 2011/12 capital guidelines the Recreation and Heritage programme has been scaled back. With regards to future years (2010/11 and 2011/12), capital funding is to be allocated at a later date in line with resources and priorities at the time. For 2009/10, allocations have been made in accordance with earlier distributions of capital funding, except where previously agreed allocations are in respect of match-funding arrangements with external partners.

4.2. It is proposed that an allocation of £62,000 be made for Countryside and Rights of Way improvements. This is required for improvements in the general condition of Countryside land, property and facilities with the aim of enhancing access and usage.

4.3. An allowance of £88,000 has been made for the Community Buildings Fund which is distributed in the form of capital grants to community associations and Parish halls for the improvement of existing facilities. This financial support is aimed at increasing access to, and usage of, community services in addition to improving partnership working with the voluntary sector.

4.4. In line with the priorities of the Transforming Through Technology strategy, a provision of £31,000 has been made for investment in the existing IT infrastructure to support new and improved ways of working. The primary focus for 2009/10 is the implementation of Hantsfile in the Recreation and Heritage Department.

4.5. An allocation of £162,000 has also been made to cover commitments to match-funding agreements. This consists of £100,000 for the Community Libraries project (the total Recreation and Heritage capital obligation split across 2009/10 and 2010/11 is £133,000) and £62,000 for improvements in landscaping and facilities at the Sir George Staunton Country Park.

4.6. Further to the provisions outlined above £62,000 has been reserved to ensure adherence to Health and Safety and Disability Discrimination legislation. This is to be targeted primarily at the Museums and Library services during 2009/10.

4.7. In addition to the locally resourced capital expenditure planned for 2009/10, the Recreation and Heritage Department is leading a £1.1 million project funded by the Department of Children, Schools and Families (DCSF), to develop 20-25 play areas as part of a three-year `Playbuilder' programme completing in 2010/11. In addition to the £307,000 received during 2008/09, further allocations of £422,000 are scheduled for both 2009/10 and 2010/11. In line with Hampshire County Council's Sustainable Communities Strategy and wider Corporate Aims, the focus of the project is on inclusion and well-being and ultimately on enhanced life-long opportunity and economic prosperity for individuals and neighbourhoods.

4.8. A Heritage Lottery-funded (HLF) project to renovate the barn and stables at Basing House and the surrounding grounds, is also to be added to the locally resourced capital programme for 2009/10. Having received an initial allotment of £53,000 for preparatory developmental works from the HLF in 2008/09, total funding of £1.071 million has now been secured following formal approval of a second stage bid earlier in December 2008. The agreed match-funding for the project is in the region of £250,000 and is to be met from the capital receipt arising from the sale of Grange Farm and a contribution from the Museums HUB. The total anticipated value of the capital scheme is included in the capital programme for 2009/10.

5) Capital programme summary:

5.1. On the basis of the position outlined above, the total value of the capital programmes submitted for consideration for the three years to 2011/12 are:

6) Revenue implications:

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

6.2. The total revenue implications for the three years of the starts programme, including capital charges, represent a real term increase of 0.36% over the 2008/09 original budget of the Recreation and Heritage department.

7) Recommendations:

7.1. Please see the Executive summary for the recommendations.

CORPORATE OR LEGAL INFORMATION:

COMPREHENSIVE RISK & IMPACT ASSESSMENT:

This report is in accordance with the capital strategy and the County Council's financial management policy. This policy applies equally to all services and ensures consistent financial management decisions across all services.