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Capital Investment Programme 2016/17 – 2020/21

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Capital Investment Programme 2016/17 – 2020/21 Open Report City Council 25 February 2016 Capital Investment Programme 2016/17 – 2020/21 Report of Chief Operating Officer Contact officer(s) Laura Rowley Chief Operating Officer Kerry Cartlidge Strategic Manager – Corporate Finance Paul Boden Team Manager – Corporate Finance Type of Decision Policy Framework Cabinet Member Councillor Abi Brown - Cabinet Member for Finance and Partnerships Wards Affected All Wards What is the report about? How will it fit with the Council’s priorities? 1.1 To present the Capital Investment Programme for 2016/17 to 2020/21 for approval to the additions made since the capital update report approved by City Council in December 2015. 1.2 The Capital Investment Programme is linked to other reports presented at this meeting: the Revenue Budget and Council Tax Setting 2016/17; the Treasury Management Annual Borrowing and Investment Strategy 2016/17 and Minimum Revenue Provision Policy Statement 2016/17. 1.3 This report incorporates the programmes and projects included in the capital update report approved by City Council in December 2015 that took account of the City Council’s emerging investment priorities, for example improvements to the highways infrastructure. 1.4 In the coming months, detailed work will be undertaken to develop a 10 to 15 year capital plan. Report Page 1 Recommendations for City Council 2.1 That the amendments and additions to the Capital Investment Programme from that approved by the City Council in December 2015 for 2016/17 to 2020/21 capital programme be approved as outlined in paragraphs 2.2 to 2.6 of this report. 2.2 That City Council approve the increase to the capital programme by £4.650 million for ‘business as usual schemes’ in 2020/21. 2.3 That City Council approve the increase to the capital programme by £7.614 million for grant funded schemes in 2020/21. 2.4 That City Council approve the amendments to funding for previously approved capital schemes by £9.594 million for existing schemes for 2016 – 2021. 2.5 That City Council approve the increase to the capital programme by £166.634 million for new requests for 2016 – 2021. 2.6 That City Council approve the increase to the capital programme by £56.264 million for the HRA for 2016 – 2021. How much will it cost and how will it be paid for? 3.1 The costs of the proposed programme are summarised in the following table. Further detail can be found in Appendix A. 2015/16 Proposed Proposed Proposed Proposed Proposed Total 2016/17 Est. Carry Budget Budget Budget Budget Budget to 2020/21 Forward Incl. 2016/17 (incl 2017/18 (incl 2018/19 (incl 2019/20 (incl 2020/21 (incl (incl carry in Future Yrs carry forward) carry forward) carry forward) carry forward) carry forward) forward) Description Total Total Total Total Total Total Total £'000s £'000s £'000s £'000s £'000s £'000s £'000s Town Centre Development 460 3,861 967 57 - - 4,885 University Station Gateway 110 2,400 2,100 1,273 3,000 - 8,773 Green Technologies - 3,110 8,510 5,510 4,220 - 21,350 City Centre Infrastructure 5 4,212 7,700 9,360 14,594 1,050 36,916 Highways Infrastructure 3,897 14,939 7,571 10,832 29,561 10,163 73,066 New Build Housing 1,333 8,778 13,924 14,675 16,575 17,525 71,477 Parks & Greenspace 315 2,002 61 - - - 2,063 Highways & Fleet 697 8,056 7,000 7,000 2,000 2,000 26,056 Sport & Leisure - 1,009 - - - - 1,009 Museums & Culture - 2,250 - - - - 2,250 Property, Planning & Employment Initiatives 129 11,764 11,639 16,550 19,900 850 60,703 Place Directorate 6,946 62,381 59,472 65,257 89,850 31,588 308,548 Education Service Development - 6,306 3,791 2,091 2,091 2,091 16,370 Adult Social Care 443 2,435 742 742 742 742 5,403 Housing (GF) 827 2,327 2,100 2,200 1,350 1,350 9,327 People Directorate 1,270 11,068 6,633 5,033 4,183 4,183 31,100 Bereavement Care - 190 250 240 - - 680 Public Health 200 650 - - - - 650 Public Health Directorate 200 840 250 240 - - 1,330 Corporate Project 1,879 2,299 3,131 1,000 1,000 1,000 8,430 Resources Directorate 1,879 2,299 3,131 1,000 1,000 1,000 8,430 Total General Fund Capital Programme 10,295 76,588 69,486 71,530 95,033 36,771 349,408 Total HRA Capital Programme - 21,709 25,043 25,937 25,695 25,695 124,079 Total Gross Capital Investment Programme 10,295 98,297 94,529 97,467 120,728 62,466 473,487 3.2 The proposed funding arrangements for the capital programme are summarised in the following table. The programme maximises the use of Report Page 2 grants, capital receipts and associated resources to finance the investment. The funding for the general fund and housing revenue account (HRA) are shown separately in the table below to reflect the separate funding reserves applicable to both areas. Est. C/F Proposed Proposed Proposed Proposed Proposed Funding Budget Budget Budget Budget Budget Total Capital Programme Funding 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 Total Total Total Total Total Total Total £'000s £'000s £'000s £'000s £'000s £'000s £'000s General Fund Borrowing 3,557 20,708 - - - - 20,708 Over-programming 19,818 34,708 35,511 43,536 14,157 147,730 Private Sector Housing Company 2,500 10,000 12,500 15,000 15,000 55,000 General Capital Receipts 2,945 1,230 3,175 - - 7,350 Ringfenced Capital Receipts 438 1,601 798 - - - 2,399 Capital Grants, Reserves and Contributions - 5,092 25,449 20,808 8,143 6,870 - 61,270 Known Capital Grants, Reserves and Contributions - 1,208 3,567 1,942 12,201 29,627 7,614 54,951 Assumed Total General Fund 10,295 76,588 69,486 71,530 95,033 36,771 349,408 Housing Revenue Account Major Repairs Reserve 9,500 12,490 15,122 10,315 10,315 57,742 Earmarked Reserves 10,209 7,805 5,173 8,159 8,159 39,505 Capital Receipts (Incl 1-4-1) 1,300 2,124 2,393 2,320 2,320 10,457 Borrowing 700 2,624 3,249 4,901 4,901 16,375 Total Housing Revenue Account - 21,709 25,043 25,937 25,695 25,695 124,079 Gross Capital Funding 10,295 98,297 94,529 97,467 120,728 62,466 473,487 When are we doing it? 4.1 The proposed capital programme is for the period 2016/17 to 2020/21. Everything else we need to know? Background 5.1 The 2015 - 2019 Capital Investment Programme was approved by Full Council in February 2015. The programme was subsequently updated to reflect changes during the year and was approved by City Council in December 2015. This budget proposal for 2016/17 to 2020/21 retains a significant number of schemes from the updated programme, moving the programme on by a year and refreshing it to take account of additional schemes and changes to funding, timescales and cost estimates. The proposals also include an estimate of the carry forward from 2015/16 into 2016/17 and future years for current schemes based on the capital outturn position as reported at the end of December 2015 (Quarter 3). 5.2 The Capital Investment Programme has a total planned investment from 2016/17 to 2020/21 of over £473.4 million including schemes already approved by City Council in December 2015 of £218.4 million and £10.3 million estimated carry-forward from 2015/16. The report adds a further year to the programme to maintain the 5 year capital programme assumption. This addition extends currently approved schemes by a further year in relation to: Extension to Report Page 3 ‘Business as usual’ schemes £ 4.7 million Extensions to grant funded schemes £ 7.6 million This report also seeks approval to add a further £176.2 million consisting of: Amendments to previously approved schemes £ 9.6 million Additional new projects £ 166.6 million Furthermore, the report seeks to approve and amend the Housing Revenue Account (HRA) housing programme by an additional £56.3 million represented by an increase to the approval made in December 2015 by £30.6 million and the addition of a further year (2020/21) of £25.7 million. A summary of the changes is shown in the table below and incorporated in the detailed programme at Appendix A: Changes to the Dec 2015 Dec 2015 Capital Proposed Programme Capital Capital Programme Capital Programme Programme Expansion Programme 2015/16 2016 – 20 2020 - 21 2016 – 21 £’000 £’000 £’000 £’000 Approved Programme Dec 15 General Fund 57,929 150,621 150,621 Carry forward 15/16 (10,295) 10,295 10,295 HRA 15,619 67,815 67,815 Total Approved 63,253 228,731 228,731 Additional ‘Business as - 4,650 4,650 usual’ Extensions to grant - 7,614 7,614 funded schemes Amendments to existing - 7,834 1,760 9,594 projects Increase in HRA - 30,569 25,695 56,264 Programme Revised Approved 63,253 267,134 39,719 306,853 New Requests - 139,509 27,125 166,634 Proposed Programme General Fund 308,259 41,149 349,408 HRA 98,384 25,695 124,079 Total 63,253 406,643 66,844 473,487 5.3 The proposed Programme has been prioritised to ensure that each scheme will create a stronger city we can all be proud of.
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