Agenda item

This report presents the results of the second round of the Council’s capital budget monitoring for the financial year 2019/20.

Discussion:

Members considered a report which presented the results of the second round of the Council’s capital budget monitoring for the financial year 2019/20.

Members discussed the improvement works needed at the Medway Tunnel, which were forecast at £672,104 over budget for this financial year.  It was argued that the Government should be lobbied to take on responsibility for the tunnel. Members were advised that whilst there was no budget or funding for this work at present, maintenance to Medway Tunnel was continuing to ensure its operational safety. Discussions about government funding were ongoing with the Department for Transport, including the Council submitting a Challenge Funding Grant Bid for Medway Tunnel. A decision on this funding application was expected at the end of December. However, if no further Government grant was secured then Council funding would be required. A Member asked for a paper on how the tunnel could be funded, including details of the decision to acquire it, commenting it was critical that the tunnel remained open. The Chief Finance Officer undertook to provide a Member briefing on the funding requirements for the tunnel.

A Member queried why the Council was being asked to fund the £25,000 cost of the totem at Rochester Station, arguing this should be met by partners and not the Council. It was proposed that officers should be recommended to seek to obtain funding for the £25,000 cost of the Rochester Station Totem before Council was asked to agree to fund this from the capital programme. It was also proposed that Cabinet should be recommended that the Command of the Heights overspend should not be funded from reserves but instead be funded from the Great Lines Heritage Park Fund and, if that was not sufficient, then from other S.106 monies. Upon being put to the vote these proposals were not agreed.

In response to how the Medway Development Company (MDC) project at Whiffens Avenue was forecast to underspend by £1.7m, the Chief Finance Officer replied that this was due to a reduction in the number of units being delivered and a change in the form of the building. The £1.7m underspend would go back to MDC holding scheme for future projects.

Decision:

The Committee agreed to:

a)     note the results of the second round of capital budget monitoring for 2019/20;

b)     note that Cabinet has recommended the following to Full Council:

i)    that the capital programme is increased by £102,259 in respect of the additional cost identified for Mercury Abatement as set out in paragraph 3.5 of the report, funded from borrowing;

ii)   that the budget for Command of the Heights is increased by £397,259 reflecting additional resources as set out in paragraph 3.6 of the report;

iii) that the capital programme be increased by £22,942 in respect of the additional costs on Rochester Station Totem as set out in paragraph 3.8 of the report, to be funded from capital receipts;

iv) that the capital programme be increased by £4.1 million for the HRA new Build Phase live as set out in paragraph 3.11 above, to be funded 70% from borrowing and 30% from ‘Right to Buy’ capital receipts in line with the existing scheme;

v)  that the capital programme be increased by £300,000 to create the HRA Buy Back scheme, to be funded from HRA Reserves and Right to Buy receipts, asset out in paragraph 3.12 of the report, and;

vi) that the Capital Programme be increased by £380,000 in respect of the ICT Data Centre works, to be funded from prudential borrowing as set out in paragraph 3.14 of the report.

c)     note that the Cabinet has agreed that £200,000 be vired from the Strood Town Centre SELEP funded scheme to the Medway City Estate Connectivity SELEP funded scheme.