To propose the Draft Capital Programme for 2009/10.

Cabinet was advised of the change in approach to the capital programme, which had been altered to reflect the impact on the economy due to economic pressures.  Cabinet was reminded of the officer group that had looked at the funding bids outlined in paragraph 6 of the report and noted this year, for the first time, that the impact of carbon footprint implications formed part of the assessment. 

Cabinet discussed the various bids, with particular reference to the mortgage rescue scheme, low cost home ownership, the maintenance of Halo leased properties and the possible funding of £800k per annum for three years towards the building schools for the future capital scheme.  Should the bid be successful the first project would see approximately £80m capital spend for new build and significant refurbishment of six schools.  The Leader reminded Cabinet that the building schools for the future bid was not supported borrowing at present, which Cabinet needed to be aware of.

In referring to page 267 of the report a question was raised about additional funding required towards corporate accommodation.  The Director of Resources clarified the matter and advised that there was a reasonably health capital receipts reserve in position and that prudential borrowing was in place.  He added that the small holdings improvement works could be funded from the existing capital receipts reserve and that this would then be topped up by the sale of part of the Neuiport estate.  The Director of Resources emphasised that capital receipts were corporate and not ring fenced for projects or directorates.  The Chairman of the Strategic Monitoring Committee questioned whether housing receipts were used purely for the updating of housing.  The Director advised this was not the case and added that there was still £8.24m available from the sale of council housing.

RESOLVED

               THAT Cabinet recommends to Council that:

(a)        the funding available be noted;

(b)               the funding allocations to capital bids be endorsed;

(c)               the impact of capital spend be noted;

(d)               the position on the capital receipts reserve be noted; and

(e)               £500,000 per annum for three years from 2009/10 – 2011/12 be added to the Capital Programme for maintenance and enhancements to the smallholdings estate.  The expenditure to be funded from the Council’s Capital Receipts Reserve.