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ITEM EX6

EXECUTIVE - 17 APRIL 2002

CAPITAL PROGRAMME 2001/02 TO 2003/04

Report by Director for Business Support & County Treasurer andDirector of Environmental Services

Introduction

  1. This report presents the updated financial position of the Capital Programme including the City Schools Reorganisation project. The programme has been updated to include the allocation of the Transport capital allocation for 2002/03 as announced in December and in accordance with guidance approved by the Executive in January. The programme also includes a revised Education Capital Programme, the capital costs of Broadband and those additions to the programme agreed by the Executive in January.

  2. A detailed Capital Programme booklet is circulated with the Agenda.

    Tables:
    Summary tables 1-3 (download in .rtf format)
    Financing (download in .rtf format)
    Education Capital Programme(download in .rtf format)
    Education Preparation Pool     (download in .rtf format)
    Oxford City Schools Reorganisation (download in .rtf format)
    Environmental Capital Programme(download in .rtf format)
    Social Services Capital Programme (download in .rtf format)
    Public Protection Capital Programme (download in .rtf format)
    Strategy & Resources Capital Programme (download in .rtf format)

  3. The booklet reflects the old committee format and will be converted to the new portfolio format in the next update.

    4. Financial Position

  4. The financial position shows an estimated surplus of £3.1m in 2001/02 a deficit of £3.3m in 2002/03 and a surplus of £7.7m after 2002/03. Built into these figures is an assumption of £2m slippage from 2002/03 to 2003/04.

  5. The overall financial position for each service block is analysed below:

    6.  

    2001/02

    2002/03

    After

    2002/03

    Total

     

    £m

    £m

    £m

    £m

    Education

    5.3

    -6.0

    5.8

    5.1

    Transport

    0.9

    -1.7

    -1.5

    -2.3

    Social Services

    -3.2

    1.2

    4.9

    2.9

    Environmental, Protective and Cultural Services (EPCS)

     

    -0.2

     

    -1.1

     

    -0.1

     

    -1.4

    Sub-Total

     

    2.8

    -7.6

    9.1

    4.3

    Repayment from Revenue Budget

     

     

    1.0

    0.5

    1.5

    Discretionary BCA

    		 

    1.3

    		 

    1.3

    Potential Slippage

    		 

    2.0

    -2.0

    0

    Other Adjustments

    0.3

     

     

    0.1

    0.4

    Surplus/Deficit (-)

     

    3.1

    -3.3

    7.7

    7.5

    Education

  6. The Education Programme includes an additional £818,000 approved Annual Capital Guidelines in 2002/03 which was omitted from the original submission sent to the DfES. Further Supplementary Credit Approvals have been received for 2002/03 and 2003/04 totalling £2.548m and £4.332m respectively. These reflect additional monies for NDS modernisation and sixth form funding which have been added to the programme. The programme has also been updated to include the purchase of land at West Oxford School as agreed by the Executive on 22 January 2002 and various other adjustments.

  7. The Education Programme now shows a surplus of £5.1m in total but with a deficit of £0.7m to 2002/03 and a surplus of £5.8m after 2002/03.

  8. There are urgent schemes at Watchfield CP, Queens Dyke CP, St. Birinus Wood Green, Henry Box and Marlborough Secondary Schools which are being considered.

    9. Transport

  9. The Environmental Programme has been updated at summary level to include the allocation of the credit approvals received under the Local Transport Settlement in accordance with the criteria agreed by the Executive in January. The project for North Oxford Park and Ride has been added to the programme as funding has been identified. A report on the detailed Environmental Capital Programme is at agenda item 7.

  10. The Environmental Programme shows a deficit of £2.3m which has arisen from approvals given in previous years for fees on developer funded schemes and preparation pool schemes for which no funding is available, and this will need to be addressed in a further review.

    11. Social Services

  11. The Social Services Programme shows a deficit of £2.0m by the end of 2002/03 but moves to a surplus of £2.9m by the end of 2003/04.

    12. Other

  12. Minor Works Schemes that were agreed by the Executive in January have been added to the programme, together with the capital costs of the Broadband project.

  13. The items for repayment from revenue budget, discretionary BCA and potential slippage were explained in the January report.

    14. Receipts Taken into Account (RTIA)

  14. The Government has announced the abolition of the RTIA mechanism from 1 April 2002. The RTIA adjustment reduced the available borrowing approvals to the Council, by assuming a certain level of capital receipts being available to fund the programme. The impact will occur from 2003/04 and will increase our borrowing capability by £1.5m in that year. This adjustment has been incorporated within the revised programme and the figure of £7.5m on the previous table would have been £6.0m without this adjustment.

  15. There is likely to be an impact on the revenue account, which will be assessed once full details have been received. This will be incorporated into the Medium Term Financial Forecast.

    16. Oxford City Schools Reorganisation

  16. A detailed analysis of the City Schools Reorganisation is included as part of the Education Capital Programme, and shows the cashflow position that needs to be managed.

    17. Capital Strategy/Asset Management Plans

  17. The Government has just issued guidance on the Capital Strategy and Asset Management Plans that have to be submitted to the Government Office for the South East by 31 July.

  18. If the Council achieves a good rating for its Capital Strategy and Asset Management Plans this year we will be exempt from having to submit these documents to GOSE again.

  19. An updated Capital Strategy and Asset Management Plan will be brought to the Executive in June for approval. A forecast report for the Capital Programme will be brought to the Executive with the Medium Term Financial Plan so that revenue and capital are considered together. This will also cover the possibilities for Private Finance Initiative Schemes.

    20. RECOMMENDATIONS

  20. The Executive is RECOMMENDED to:

          1. note the report;

          2. note that a revised Capital Strategy and Asset Management Plan will be brought to the Executive in June.

CHRIS GRAY
Director for Business Support & County Treasurer

DAVID YOUNG
Director Environmental Services

Background Papers: Nil

Contact Officer: Mike Petty Tel 01865 815622

April 2002

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