Transfers between capital heads of expenditure

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A decision made (23.01.07) to approve the approve the transfer of funds between existing capital heads of expenditure.

Subject:

Transfers between capital heads of expenditure

Decision Reference:

MD-T-2007-0008

Exempt clause(s):

Type of Report (oral or written):

Written

Person Giving Report (if oral):

N/A

Telephone or

e-mail Meeting?

N/A

Report

File ref:

I:Minister:2007:Ministerial Decisions:MD 000 2006 Capital Budget Transfers

Written Report

Title:

2006 Capital Budget Transfers

Written report – Author:

Ellen Littlechild, Finance Director

Decision(s): The Minister decided:

a) to approve the transfer of funds between existing capital heads of expenditure, as highlighted below:

Capital Vote	Existing Allocation £’million	Revised Allocation £’million
C2684 Relocation of Refuse Handling Plant	£3.240	£-
C2683 – Reuse and Recycle Centre	£1.533	£0.500
C2690 – Sludge – Phase I Thickener (plus a provision of £345k for inflation)		£2.629
C2657 Solid Waste Strategy (EFW Planning Process)		£0.900
C2689 Contingency re. exiting plant failure		£0.744
Total	£4.773	£4.773

b) to request the approval of the Minister for Treasury and Resources to these capital transfers.

Reason(s) for decision:

To enable the Treasury and Resources Minister to approve the capital virements so that the Department for Transport and Technical Services can fund the priority projects as indicated by the Council of Ministers.

Action required: The Finance Director:

· to request the Minister for the Treasury and Resources Department to approve the capital transfers as referred to in this report.

Signature:

(Minister/ Assistant Minister)

Date of Decision:

Transfers between capital heads of expenditure

TRANSPORT AND TECHNICAL SERVICES

TRANSFERS BETWEEN CAPITAL HEADS OF EXPENDITURE

Purpose of the Report

The purpose of this report is to seek the Minister for Transport and Technical Services approval to transfer funds between existing capital heads of expenditure and request the approval of the Minister for Treasury and Resources to this transfer.

Background

In proposing the 2007 – 2011 capital programme, which was approved by the States in September 2006, the Council of Ministers agreed that monies allocated to the Transport and Technical Services Department could be used for other purposes, as identified in Appendix A.

There is no explicit reference in the 2007 - 2011 business plan to the proposed revisions to 2006 budget - as that document did not cover 2006.

Approval to transfer allocated capital budgets ('Heads of Expenditure') lies with the Minister for Treasury and Resources not the States as a whole (see extract from Financial Direction 3.6 below):

Transfers between capital heads of expenditure

· Approval of non-contentious transfers of up to £100,000 is delegated to the Treasurer of the States, or in his absence another person nominated by the Treasurer of the States.

· All other transfers between existing capital heads of expenditure require the approval of the Minister for Treasury and Resources.

· Transfers to new capital heads of expenditure require the approval of the Council of Ministers and the Minister for Treasury and Resources.

Discussion

The principal differences between the revised proposals and that previously agreed in the 2006 Business Plan are as follows:

· Solid and Liquid Waste Treatment: The Transport and Technical Services Sludge Dryer/Thickener Plant has been phased, with phase 1 (Thickener - c£3m in 2007) being met from funds previously allocated to Waste Strategy projects in 2006 and funding for phase 2 (Dryer - c£3m) deferred to 2008.

Rationale - The relocation of the Refuse Handling Plant will not be required should the EfW plant be located at La Collette. It is, therefore, proposed that of the 2006 allocated funding of £3.24m for the relocation:

o £1.65m be transferred to fund the continuing design work for the Waste Strategy, in advance of the approval of an alternative financing stream, and provide a contingency against accelerated repair requirements for the existing plant, and

o £1.596m be transferred to part fund the Thickener project (plus a provision of £0.204k for inflation – which will be released should the tendering process demonstrate that it is required).

The table below highlights the movement from the existing capital programme to the revised programme.

Capital Vote	Existing Allocation £’million	Revised Allocation £’million
C2684 Relocation of Refuse Handling Plant	£3.240	£-
C2657 Solid Waste Strategy (EFW Planning Process)		£0.900
C2689 Contingency re. exiting plant failure		£0.744
C2690 – Sludge – Phase I Thickener		£1.596
Total	£3.240	£3.240

· A permanent Reuse/Recycle Centre cannot be developed at La Collette until the main Energy from Waste plant is completed. Of the £1.533m allocated in 2006:

o £0.5m will remain available in 2006 to provide a temporary recycling ‘bring’ facility at Bellozanne, and

o the balance of £1.033m allocated to fund the Thickener. (plus a provision of £0.141k for inflation – which will be released should the tendering process demonstrate that it is required).

A sum of £1.518m is included in the 2011 Programme to provide a permanent reuse/recycle centre at La Collette.

Capital Vote	Existing Allocation £’million	Revised Allocation £’million
C2683 – Temporary Reuse and Recycle Centre	£1.533	£0.500
C2690 – Sludge – Phase I Thickener		£1.033
Total	£1.533	£1.533

Recommendation

It is recommend that the Minister for Transport and Technical Services approve the transfer of funds between existing capital heads of expenditure, as highlighted below, and request the approval of the Minister for Treasury and Resources to these transfers.

Capital Vote	Existing Allocation £’million	Revised Allocation £’million
C2684 Relocation of Refuse Handling Plant	£3.240	£-
C2683 – Reuse and Recycle Centre	£1.533	£0.500
C2690 – Sludge – Phase I Thickener (plus a provision of £345k for inflation)		£2.629
C2657 Solid Waste Strategy (EFW Planning Process)		£0.900
C2689 Contingency re. exiting plant failure		£0.744
Total	£4.773	£4.773

To approve that all the budget virements highlighted above take effect as at the 31st December 2006.

Reason (s) for Decision

Action Required

The Finance Director:

· to request the Minister for the Treasury and Resources Department to approve the capital transfers as referred to in this report.

Reference:	States Business Plan 2006 – 2009
Written by:	Ellen Littlechild, Finance Director
Approved by:	John Richardson, Chief Officer
Attachment:	Appendix A – The Council of Ministers revised capital allocation

Appendix A

T&TS Capital Allocations	Funding Year

Approved Funding Allocation	2006	2007	2008	2009	2010	2011
	£000s	£000s	£000s	£000s	£000s	£000s
In Vessel Composting
Budget plus inflation	4,549
(No Change)

Reuse/Recycle Centre
Temporary Solution - Bellozanne	500
Permanent Solution - La Collette						1,518
(£1.16m inflated as 'must do' in 2011)

EfW Plant
EfW Planning Process	900
Contingency re existing plant failure	744
Sinking Fund			6,000	7,500	15,000	11,500

Sludge
(Phased)
Phase 1 - Thickener	2,974
Phase 2 - Dryer			2,974
Sludge Digesters & STW Tanks						2,000

Infrastructure Works
Roads, Sewers & Sea Defences (Inc. STW Odour Control)	4,500	4,500	4,500	4,500	6,000	4,500

Inert Waste Disposal Site
Planning & Design						750

Minor Capital
To be allocated	600	350	350	350	350	350

Total	14,767	4,850	13,824	12,350	21,350	20,618