 £600K for Void Properties in 2014/15 to be funded using a revenue contribution.
33. Whilst no specific sum has been included in the Capital Programme at this time, the Council will be investigating the possibility of improving facilities at Jenner Park. The costs of any improvements will be funded by a contribution from the Visible Services Reserve.
· The continued development of the School Investment Programme with the proposed expansion of the Llantwit Comprehensive remodelling scheme to a larger Llantwit Learning Community and continued investment in housing under the Housing Improvement Programme. These schemes will bring with them continued opportunities for growth, development of surrounding infrastructure and inward investment.
· The continued utilisation of the Local Government Borrowing Initiative to improve the local road network thereby supporting local infrastructure and underpinning future regeneration opportunities. The final year of the current scheme is 2014/15 we are not aware, what scheme, if any will replace the funding mechanism from 2015/16.
· Ensuring that all large Council Capital Projects are BREEAM (the design and assessment method for sustainable buildings) excellent rated.
Additional funds, £650k, were allocated in the 2013/14 Capital Programme to address Flood Risk Management on a one off basis. £388K for Flood Management schemes at Boverton and Coldbrook have been carried forward into 2014/15. Ongoing funding for Flood Risk Management is provided for in the five year capital programme at £100K per annum.
Bids for Asset Renewal were ranked in accordance with Risk and Corporate Priority to help assist with rationing the scarce resources available. Where sufficient resources were not available to award a bid that met the criteria the bid was allocated to a future year of the programme with sufficient asset renewal funding available. Following a review of Asset Renewal requirements as part of the budget process an additional £300K has been allocated to both Education and Schools and Visible Services to meet their specific pressures.
Provision is made in each year of the capital programme for regeneration via the regeneration fund £150K, and the Barry Regeneration Partnership Fund £300K.
Proposed changes to School Investment Programme funding for Ysgol Gwaun Y Nant and Oakfield, Llantwit Learning Community means that more schools benefit from the available funding.
Bid for extension of Castleland Renewal funding following extension of grant to 2016/17 has been awarded.
37. The schemes included under the Band A submission between 2013-14 and 2018/19 are: - Nant Talwg (£2.737M), Dewi Sant (£3.039M), Barry Cluster (£4.2M) and Llantwit Learning Community (£22.100M), small discrepancies between the figures shown here and in the table below are due to additional funding allocated from reserves or asset renewal for the schemes.
38. The following table shows the total spending on the Education Programme from 2013/14 to 2018/19 incorporating expenditure as part of the School Investment programme under 21st Century Schools funding (the final year of Band A schemes), with gross expenditure totalling £85.401M. Asset renewal includes £50k annually to be ring fenced as a contingency for urgent schemes. Any unspent portion of this £50k may be rolled forward to the following financial year.
39. The schemes in the Education Capital Programme include the enhanced scheme for Llantwit Learning Community with a revised cost of £22.1M. The Business Case has been submitted to Welsh Government using Delegated Powers. There are various risks in the funding for the scheme regarding Capital Receipts and additional Welsh Government grant required to fund the scheme, these can be mitigated to a certain extent through a combination of delaying the amalgamation stage of the scheme to qualify for funding under Band B of 21st Century Schools funding, value engineering the scheme to reduce its overall costs and limited additional use of reserves. However if no additional grant is received from Welsh Government and no Capital Receipt is received from the Eagleswell site the Council will be unable to progress the scheme.
41. The Welsh Government requires all local authorities who retain their housing stock to submit an acceptable Housing Business Plan annually that incorporates a detailed financial forecast in the form of a 30 year financial model. The Business Plan is the primary tool for a local authority’s housing landlord service and includes all assets within the Council’s Housing Revenue Account (HRA).
42. The latest annual Plan was submitted to Welsh Government in December 2013, and forms the basis of the Major Repairs Allowance (MRA) grant application, a pivotal financing component for the Housing Improvement Programme (to meet the Welsh Housing Quality Standard).
43. The MRA for 2014/15 has not yet been announced by the Welsh Government but the assumed budget in Appendix A remains at £2.8M p.a., as received in 2013/14.
44. The Final Capital Programme includes an additional £600K for Void Properties in 2014/15 to be funded using a revenue contribution.
45. The latest Business Plan projections were reported to Cabinet on 2nd December 2013 (minute no. C2113) and approved at the Council meeting of 18th December 2013. The Plan outlines an increase in the total amount of Prudential Borrowing required than was previously assumed from £32.4M to £33.9M. The date anticipated that all prudential debt could be repaid is now 2032/33 (previously 2031/32).
46. A sum of £400k has been scheduled for 2014/15 for a Replacement Client Record System in Social Services.
47. A sum of £800k per annum is included to address high priority Visible Services assets and infrastructure improvements. A further £2.230M under the Local Government Borrowing Initiative is being utilised in 2014/15 for local road network improvements.
48. Flood Risk Management funding of £100K is provided in addition to funding slipped from 2013/14 for Flood Risk Management Schemes at Coldbrook and Boverton.
49. A sum of £300k has been allocated annually in relation to the Barry Regeneration Partnership. As well as being used for preparatory work (e.g. site investigations), this may also be applied as match funding to lever additional sources of grant funding. In addition, a further £150k has been allocated each year to fund regeneration initiatives including feasibility studies. A sum of £50k has been allocated in 2014/15 and 2015/16 for feasibility studies into future improvements at Penarth Esplanade and other Penarth regeneration.
50. Funding for Disabled Facilities Grants of £4.6M has been provided over the 5 years.
51. The Capital Programme includes funding for the Space Project £1.195M in 2014/15 and £300K in 2016/17. This investment is funded by the Project fund is expected to achieve net revenue savings.
52. The table below details the General Capital Funding and internal resources required to fund the schemes proposed in Appendix A.
53. Reduced resources will restrict the number and size of capital schemes that the Council is able to fund. The gross value of schemes assessed as lower corporate priority and risk totals £8.956M between 2014/15 and 2018/19 and as advised in the 18th November 2013 Initial Capital Proposals are not included in the Final Proposed Capital Programme 2014/15 to 2018/19.
54. There will also be significant pressures on spending post 2018/19 which are not yet funded. These include the backlog of school, highway and buildings repairs which in time could expand beyond issues associated with repairs and maintenance to those of â€˜fit for purpose’ considerations.
56. WG has issued guidance on what constitutes prudent provision and that requires the Council to approve a statement each year of the policy on making MRP. The MRP charge in 2014/15 for capital expenditure incurred will continue to be calculated in accordance with the methodology prescribed by the regulations in force until 31st March 2008. Another option would have been to calculate the MRP on the non-housing Capital Financing Requirement (CFR) at the end of the preceding year, i.e. without making the adjustment. However, the option that has been used more accurately reflects the MRP that should be charged. Such costs are supported by Revenue Support Grant.
* The Non Housing Capital Financing Requirement measures the Council’s underlying need to borrow for capital purposes and is the Council’s cumulative capital expenditure not financed by other means, less the total MRP made in previous years. (Supported Borrowing).
** Adjustment A nullifies the revenue effect of the changes to MRP calculation following the introduction of the Prudential Code in 2004.
58. Capital expenditure incurred during 2014/15 will not be subject to a MRP charge until 2015/16.
60. The Section 151 Officer considers that the estimated costs of unsupported borrowing are both prudent and sustainable.
61. Sustainability is one of the main strands of the financial strategy for capital. Several of the schemes included in these proposals will assist in addressing the impact of climate change. Details are set out in the main body of the report.
62. One of the purposes of the Sustainable Development Working Group is to review the sustainability of major capital schemes. Wherever possible, the Council strives to reduce carbon emissions and improve energy efficiency and positively encourages waste reduction initiatives.
63. The Council is required to show that capital expenditure is covered by identified resources when developing its Final Capital Programme proposals.
64. The obligations of the Council with regard to Section 17 need to be fully considered in the budget decision making process.
65. Additional finance improves the Council’s opportunities for assisting disadvantaged members of society.
67. The results of the Budget Review will inform the Final Capital Programme proposals 2014/15 to 2018/19 which will require the approval of Council.
68