To advise the Committee on the final outturn position for the 2007/08 Environment Capital Programme and to highlight the proposed programme for 2008/09.

The Committee were advised on the final outturn position for the 2007/08 Environment Capital Programme and the proposed programme for 2008/09.

The Committee were advised that the total of the Capital Programme had slightly increased to £27,599,000 from the figure of £27,586,000 reported to the previous meeting.  Brief details of the net increase were set out in the agenda report together with the final outturn position set out at appendix 1 to the report. 

The proposed Capital Programme for 2008/09, attached to the report at appendix 2, indicated the budget had increased to £19,949,000 from the original budget included in the Medium Term Financial Management Strategy of £16,203,000.  This increase related to net additions due to slippage in the 2007/08 programme; an additional allocation for enhancements to High Street, Hereford, of £751,000 and various costs (£1,390,000) associated with the Rotherwas Access Road.

On scrutinising the report the following principal points or comments were noted:

• Concern was raised regarding an apparent mismatch in the use of the budgets.  It was suggested that greater emphasis had been placed on vehicle related budgets, hence many of the overspends, in favour of the people related budgets e.g. underspends in footway and cycle related budgets, and that this was contra to the Local Transport Plan. The Acting Head of Highways and Transportation acknowledged that due to the July 07 floods a number of schemes in the programme had been delayed and the budgets had been adjusted accordingly.   Overall, under the direction of the Cabinet Member and the Director of Environment and Culture, the programme had been adjusted to make best use of the capital allocation. 
• Responding to a comment that the investment was not alleviating the gridlock in the City, the Acting Head of Highways and Transportation informed the Committee that evidence from local surveys indicated that both cycle and public transport usage had risen.  The congestion issue was taken seriously and both the Park and Ride scheme and an intelligent transport scheme were contained in the LTP.  
• Questioned on the additional allocation (£751,000) for enhancements to High Street, Hereford, the Cabinet Member (Highways and Transportation) informed the Committee that the improvement works to High Town, undertaken during 2007, had also included works to Widemarsh Street.  However, at the request of a number of traders those works had not been undertaken at that time.  While the intention had been to undertake improvements to Widemarsh Street to create an integrated streetscene to link to the ESG within the current financial year, he warned that, to ensure a consistent use of materials etc, the improvement programme may slip to the 2009/10 financial year.
• Asked to clarify the increase in costs of the Rotherwas Access Road the Cabinet Member (Highways and Transportation) reported that while some elements had been covered by the contingency fund in the contract e.g. work due to the Rotherwas Ribbon, other unforeseen works, such as necessary adaptations to accommodate utility works, needed to be funded.
• Questioned on the underspend on rail improvements the Committee noted that improvement schemes were intended for Hereford, Ledbury and Leominster stations, however, progress had been delayed due to negotiations with the rail authority.

The Director of Environment and Culture concluded by commenting that with the number of schemes underway a number of delays were almost inevitable and therefore schemes or budgets were re-profiled to make best use of the available capital resource.

 RESOLVED: That

a)      The position as set out in the Capital Budget Monitoring report be noted; and

b)     The Committee regrets the continual underspends on sustainable transport budgets, particularly cycling initiatives, as opposed to overspends on car management and road building. The Committee requests that all officers delivering the Local Transport Plan should make every effort to ensure that budgets for sustainable modes of transport will be fully committed in 2008/9.