Issue - meetings

To consider and decide on the recommendations as set out in the attached report.

       RESOLVED –

1.     That the actual gross and net expenditure for the year and the sources of finance, as shown in Appendices B to D be noted.

2.     That the proposed variations to the Capital programme, set out in note 4.3 to 4.4 be approved.

3.     That the proposed movement between years, set out in notes 4.5 to 4.16 be approved.

4.     That the inclusion of new schemes into the capital programme as set out in note 4.17 be noted.

REASON FOR DECISION:

Managing and forecasting capital expenditure effectively was vital in order to support all of the services provided by the Council.                      

Jane Fineman, Head of Finance, Procurement and Parking introduced the report that summarised the actual and forecast outturn expenditure on capital schemes as at 31 December 2021.

Discussion and responses to Members questions included the following:

-       Cabinet originally approved capital expenditure of £19.479m for 2021.

-       Since then a net £173k of projects had been rescheduled to 2021/22 or removed from the programme.  This brought the revised budget to £19.652m.

-       Approvals requested in the report brought the total forecast spend for 2020/21 to £15.894m.  This was a net decrease of £3.758m.

-       This consisted of a decrease of £3.667m for spend rescheduled to or from 2021/22 and a decrease in the forecast projected spend of £91k. 

-       The rescheduling of the £3.667m into 2021/22 consisted mainly of £2.5m for the Amelia Scott project, £922k for disabled facilities grants and £195k for housing renewal grants.  These were mainly due to the effects of the pandemic.

-       The net decrease spend of £91k consisted of £15k for the Benhall Miss Depot costs and £76k for the now closed Royal Victoria Place refurbishment project.

-       Full Council on 24 February 2021 would be asked to approve an additional £840K of capital expenditure in relation to the 2021/22 budget.  £515k of this would be used for the Crescent Road refurbishment project.  This project was being entirely funded from s106 developer funding and a successful Government Grant.

-       A capital receipt of £45k was received this quarter which was a clawback related to a previous sale of land at Red Oak.

-       The capital application for the replacement of the Benhall Mill Depot had been updated.  £688k had already been approved, but an  additional £237k was now needed for the project.  The additional funding was required for connecting into the main sewerage system with a new pumping station and for more sophisticated ventilation and heating systems that were needed in order to comply with building regulations. The whole project was still anticipated to deliver a surplus of around £475k from the sale of the land that would be made available for residential development.

       RESOLVED –

1.    That the actual gross and net expenditure for the year and the sources of finance, as shown in Appendices B to D be noted.

2.    That the proposed variations to the Capital programme, set out in note 4.3 to 4.4 be approved.

3.    That the proposed movement between years, set out in notes 4.5 to 4.16 be approved.

4.    That the inclusion of new schemes into the capital programme as set out in note 4.17 be noted.

REASON FOR DECISION:

Managing and forecasting capital expenditure effectively was vital in order to support all of the services provided by the Council.                      

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

Jane Fineman, Head of Finance, Procurement and Parking introduced the report that summarised the actual and forecast outturn expenditure on capital schemes as at 31 December 2020.

Discussion and responses to Members questions included the following:

-       Cabinet originally approved capital expenditure of £19.479m for 2021.

-       Since then a net £173k of projects had been rescheduled to 2021/22 or removed from the programme.

-       This brought the revised budget to £19.652m.

-       Approvals requested in the report brought the total forecast spend for 2020/21 to £15.894m.  This was a net decrease of £3.758m.

-       This consisted of a decrease of £3.667m for spend rescheduled into next year and a decrease in the forecast projected spend of £91k.

-       The rescheduling of the £3.667m consisted mainly of £2.5m for the Amelia Scott project, £922k for disabled facilities grants and £195k for housing renewal grants.

-       The net decrease of spend of £91k consisted of £15k for the Benhall Mill Depot costs and £76k for the Royal Victoria Place refurbishment project.

-       Full Council on 24 February 2021 would be asked to approve an additional £840k of capital expenditure in relation to the 2021/22 budget. £515k of this would be used for the Crescent Road refurbishment project.  This project was being entirely funded from s106 developer funding and a Government grant. 

-       A capital receipt of £45k was received this quarter which was a clawback related to a previous sale of land at Red Oak.

-       The normal maintenance programme would not be affected as part of the works taking place to renovate the football pitches.

-       The drainage work on the lower football pitches at the Hilbert Recreational Ground had been scheduled for 2021/22. 

-       £47k of s106 money allocated in 2019/20 had not been lost. TWBC had asked the developers to agree for the money to be used for an alternative purpose to the one originally specified.  The £51k allocated in 2020/21 which although had yet to be spent, had been committed to an affordable housing scheme and as such would not be lost.

-       The developer was not obligated to allow TWBC to repurpose s106 money – this was something that was rarely requested.

-       It would be possible for TWBC to ask contractors currently using North Farm Lane to contribute to the resurfacing costs, but there was doubt as to whether this would be successful.  TWBC would like Kent CC to adopt this road.  Kent CC were more likely to take the road if it was in good condition.

-       At present there was only one water metre allocated for all of the properties at Cinder Hill.  Because the cost could not be split, residents could not be asked to settle their own bills and as such TWBC had to pick up the cost.  In order to be able to charge residents individually it was necessary to install water metres for each property.  It was therefore worth the £20k investment. 

RESOLVED – That the recommendations to Cabinet  ...  view the full minutes text for item 41