Agenda item

Consider report by the Chief Financial Officer on the progress of the 2015/16 Capital Financial Plan and seeking approval for projected outturns and associated virements.   (Copy attached.)

There had been circulated copies of a report by the Chief Financial Officer presenting an update on the progress of the 2015/16 Capital Financial Plan and seeking approval for projected outturns and associated virements, and the reallocation of funds.  The monitoring tables in Appendix 1 to the report detailed the actual expenditure to 30 June 2015.  Key issues identified in these tables were summarised within the main report.  The tables identified a net variance of £14.922m against the approved budget.  The net in-year budget reduction of £17.529m was primarily due to a budget change of £14.531m relating to the funding model for Kelso High School and the revised presentation of £4.2m for Next Generation Broadband (BDUK).  The net budget timing movements amounted to £2.606m, of which the most significant were the forward timing movements of £1.0m for General Roads and Bridges Block, £2.0m for Selkirk Flood Protection, and £0.849m for Langlee and Broomlands Primary Schools, partly offset by a timing movement of £0.836m to 2016/17 for Complex Needs – Central Education Base.  Appendix 3 contained a summarised list of timing and budget movements within the 2015/16 Capital Plan.  Appendix 2 contained a list of the block allocations approved for this year and the various approved and proposed projects to be allocated from them within the 2015/16 Capital Plan.  At this stage in the year it was estimated that these adjustments would allow an element of re-prioritisation of the capital programme and it was suggested that Members use this flexibility to bring forward investment in the roads network and energy efficiency projects to help the Council’s revenue position and carbon commitments.  During the discussion which followed it was noted that the Chief Financial Officer would bring back details of the energy efficiency programme.  A request was made for an update of progress on the Hawick Flood Protection Scheme and it was agreed that this would be presented to a future meeting of the Teviot and Liddesdale Area Forum.  

DECISION

AGREED:-

(a)        the projected outturns and associated virements as identified in Appendix 1 to the report as the revised capital budget;

(b)       to note  the adjustments made to the budget for Kelso High School to reflect its status as a fully funded revenue project and agreed to maintain a £1m budget contingency within capital while discussions continued  with SFT to finalise the project delivery arrangements and determine the start date;

(c)        to note  the change to the Kelso High School funding model and clarification of allowable costs had allowed the reallocation of £0.375m from Kelso High School and agreed to reallocate this funding to Energy Efficiency Projects across the Council School Estate resulting in reduced revenue costs for these properties;

(d)       the acceleration of £1.0m from 2018/19 Road Block to augment the roads budget for 2015/16 to allow improvements to key areas of the roads network;

(e)        the list of block allocations detailed in Appendix 2 to the report;

(f)        to instruct project managers and budget holders to ensure that robust arrangements were in place to achieve the projected out-turns; and

(g)       an update on the progress of the Hawick Flood Protection Scheme be presented to a future meeting of the Teviot and Liddesdale Area Forum.