Issue - meetings

To consider the report of the Chief Finance Officer.

Corporate Services Scrutiny Committee considered the report at its meeting on 28 September 2017 and its comments will be reported.

The Chief Finance Officer presented the report on the current position in respect of the Council’s revised annual capital programme and to advise Members of the anticipated level of deferred expenditure into future years. The report also sought Member approval to amend the annual capital programme in order to reflect the reported variations.

He advised that the performance of the revised Capital Programme for the current financial year was that £1.478 million had been spent during the first three months which was lower than normal. This was mainly as a result of the delay of three significant schemes. 

The Chief Finance Officer highlighted the expenditure variances for 2017/18 which included an under spend on the improvements to Exhibition Way bridge as the scheme could not proceed within the existing budget and needed to be reconsidered and Smoke/Fire Alarms in Older Persons accommodation. Members were updated on the achievements of the Riverside Arches Fencing and the St Nicolas Priory Structural Improvements Works. 

The Chief Finance Officer advised that the world culture galleries improvement works recommendation would be amended to request approval subject to a satisfactory business case being agreed by the Chief Executive & Growth Director and Leader using the balance of the Museum of the Year funding to reduce the amount of borrowing required.  He also informed Members that the Beacon Heath marital arts and boxing club project had been deferred pending the outcome of the Leisure Services Review. The additional funds were required to replace lifts at the Mary Arches multi-storey car park, as outlined in the circulated report.

The Portfolio Holder for City Transformation, Energy and Transport proposed that the approval for the world culture galleries should also be in consultation with the Portfolio Holder for Economy and Culture. This was agreed by Executive Members.

Members discussed the need to ensure that the caveats of the Museum of the Year funding were met. 

Corporate Services Scrutiny Committee considered the report at its meeting on 28 September 2017 and its comments were reported.

RECOMMENDED that Council approves the:-

(1)        revision of the annual capital programme to reflect the reported variations detailed in paragraphs 8.4 and 8.5 of the circulated report; and

(2)       addition to the capital programme:-

(a)   for the world culture galleries improvement works be subject to a satisfactory business case being agreed by the Chief Executive and Growth Director, the Leader and the Portfolio Holder for Economy and Culture with the Museum using the balance of the Museum of the Year funding to reduce the amount of borrowing required; and  

(b)  for the replacement of the lifts at Mary Arches Multi-Storey Car Park (£100,000)

To consider the report of the Chief Finance Officer.

The Chief Finance Officer presented the report which provided Members with an update on the current position of the revised annual Capital Programme and the anticipated level of deferred expenditure into future years. Local Authorities were required to provide an estimate to the total of capital expenditure that it would incur during the financial year after setting out prudential indicators for capital expenditure.

He discussed the performance of the revised Capital Programme for the current financial year, highlighting that £1.478 million had been spent on the programme during the first three months which was equivalent to 4.4% of the revised programme. It would normally be higher, but the budget was large as a result of three significant schemes and in value terms spend was not much different to previous years.  He noted that the Leisure Complex update would require the report to be amended at the end of the second quarter.

The expenditure variances for 2017/18, had an under spend on the improvements to Exhibition Way bridge. The tender results were in excess of the budget and work could not be completed at present, the issue of long term delivery would be addressed. The housing surveys had shown that there were less properties requiring rewiring than first thought.

The Chief Finance Officer updated Members on the schemes that would be deferred to 2018/19 and discussed the schemes completed during the first quarter.

He informed Members that the world culture galleries improvement works recommendation would be amended to request approval subject to a satisfactory business case being agreed by the Chief Executive and Growth Director and Leader and the Museum using the balance of the Museum of the Year funding to reduce the amount of borrowing required.  He also informed Members that the Beacon Heath marital arts and boxing club project had been deferred and that additional funds were required to replace lifts at the Mary Arches multi-storey car park.

In response to questions from Members, the Chief Finance Officer responded:-

·         The Newtown Community centre had council approval  for additional S106 funding;

·         He would look at why the Exhibition Way bridge maintenance work had gone back to the planning stage and was not receiving more money. If more work begins, Network Rail would be consulted;

·         The procurement process had negotiated lower costs for the smoke and fire alarms, confirmation from Housing would be sought that the lower cost did not result in a lower standard product being used. Fire safety would have been taken into consideration;

·         The previous year’s Capital Programme in respect of electrical re-wiring were based on estimates. The actual spend was based on a significant survey, providing a better idea of the actual homes requiring electrical re-wiring.

Corporate Services Scrutiny Committee supported the report and recommended Executive and Council approve the following:-

(1)  The revision of the annual capital programme to reflect the reported variations detailed in 8.4 and 8.5

(2)  The additions to the capital programme detailed in 8.7.