To seek the Strategic Monitoring Committee’s views on the draft capital programme for 2008/09. 

The Committee’s views were sought on the draft capital programme 2008/09.

A copy of the report to Cabinet on 24 January 2008 was appended to the report.   Appendix 1 to the report showed the expected funding position for the next 3 financial years.  Appendix 2 listed all the bids received for 2008/09.

The Head of Financial Services presented the report, outlining the basis on which schemes had been recommended for inclusion in the programme and how they would be funded.

In the ensuing discussion the following principal points were made:

·         It was noted that the justification for recommending the schemes to be funded by prudential borrowing was that failure to progress them carried a legal or reputational risk to the Council.  It was emphasised that the failure to progress a bid for the development of the Master’s House, Ledbury carried both of these risks.  The current library was in breach of the Disability Discrimination Act and the threat of action against the Council could well be acted upon if there were no clear plan for a replacement in place.  It was also understood that English Heritage might well soon classify the Master’s House which was a Grade 2* listed building, as being at risk.  The Committee was reminded that assurances had been given by the Council in consultation exercises and at public meetings about the commitment to develop the property.  It was suggested that Cabinet should therefore be asked to reconsider proposals for the property’s development and include the development within the Medium Term Financial Strategy.

The Director of Resources said that the project was a large one and would be difficult to afford.  This did not preclude a bid, but, whilst officers continued to explore options, there was no firm capital bid and in the absence of firm costings it was difficult to include the proposal in the MTFS, but there was scope for such bids to come forward given financial capacity into the future was indicated.

·         A request was made that in cases where a developer’s contribution was secured, by the Council consideration should be given to using the income in the area where it was generated.

·         In response to a request for clarification about the pattern of planned capital expenditure in the Children and Young People’s Directorate the Head of Financial Services said that the increases shown in 2009/10 and 2010/11 related to Government Grant under the Building Schools for the Future initiative.  He confirmed that this funding was secured.

·         With regard to Colwall railway bridge it was noted that it was no longer intended to provide a Bailey bridge and that negotiations were continuing with Network Rail.  It was requested that Cabinet be advised of the Committee’s concerns at the need for clarity about the proposals for the replacement of Colwall railway bridge and specifically any costs to be borne by the Council.

·         A Local Member and school governor emphasised the importance of completing the Holmer School flood alleviation works.

 RESOLVED:

That    (a)        Cabinet be recommended to reconsider the proposals for the development of the Master's House, Ledbury, given concerns about the reputational and legal risks to the Council of not setting out a plan for the building's future use;

                        and

            (b)       Cabinet be advised of the Committee's concern at the need for clarity in relation to the proposals for the replacement of Colwall railway bridge and specifically any costs to be borne by the Council.