Sewage Treatment Works Upgrade: Budget Transfer

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A decision made on 8 August 2012:

Decision Reference: MD-T-2012-0067
Decision Summary Title :	Temporary Capital Transfer from Central Planning Vote to Transport and Technical Services		Date of Decision Summary:	02 August 2012
Decision Summary Author:	Capital Accountant		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Transport and Technical Services Temporary Capital Transfer from Central Planning Vote		Date of Written Report:	02 August 2012
Written Report Author:	Capital Accountant		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Temporary Budget Transfer from Central Planning Vote to fund the Secondary Treatment Upgrade of the Sewage Treatment Works (STW) feasibility assessment and project design and the creation of a new capital head of expenditure called “Sewage Treatment Works Upgrade”.
Decision(s): The Minister approved a budget transfer of £500,000 capital budget transfer from the Central Panning Vote to the newly created capital head of expenditure called “Sewage Treatment Works Upgrade”. The Department will transfer the £500,000 back to the Central Planning Vote when it receives its capital allocation of £3,100,000 for the project in 2014. Should the allocation for the STW not be approved as part of the 2013 Budget debate, the funds will be sourced elsewhere from within the TTS capital budget and repaid to the Central Planning Vote in 2014.
Reason(s) for Decision: To enable the STW feasibility assessment to commence in 2012 in order to allow the project to begin design and construction in 2014.
Resource Implications: Other than those detailed in the report there are no further financial or manpower implications.
Action required: The Finance Director to seek approval from the Minister for Treasury and Resources and then to action the budget transfers in conjunction with the Head of Financial Performance Reporting.
Signature:		Position: Minister for Transport & Technical Services
Date Signed:		Date of Decision (If different from Date Signed):

Sewage Treatment Works Upgrade: Budget Transfer

TRANSPORT AND TECHNICAL SERVICES DEPARTMENT

TEMPORARY CAPITAL TRANSFER FROM CENTRAL PLANNING VOTE

TO TRANSPORT AND TECHNICAL SERVICES

Purpose of Report

To enable the Minister to approve a temporary capital budget transfer of £500,000 from the Central Planning Vote to Transport and Technical Services and the creation of a new head of expenditure called “Sewage Treatment Works Upgrade” to enable the feasibility works for the new STW to commence.

Background

A budget of £3,100,000 for the Secondary Treatment Upgrade of the Sewage Treatment Works (STW) has been included within the draft Annual Business Plan 2012 for 2014. In order for this work to begin, preparatory work and feasibility studies need to be performed to identify the best available technology.

Discussion

The existing secondary treatment works was upgraded in 1997 with new technology to minimise space and reduce cost. This has been difficult to operate and has not provided the degree of reliability required for the treatment of the Island’s sewage.

The Central Planning Vote has been used in the past to provide departments with advance monies to fund feasibility studies. The advance is then replenished back to the Central Planning Vote when the department receives the funding through the Business Plan process.

To fund the timely commencement of the feasibility works, the Department request a transfer of £500,000. In 2014 the Department will transfer the £500,000 back to the Central Planning Vote when the £3,100,000 for the STW Project becomes available.

Recommendation

That the Minister approves a budget transfer of £500,000 capital budget transfer from the Central Planning Vote to the newly created capital head of expenditure called “Sewage Treatment Works Upgrade”. The Department will transfer the £500,000 back to the Central Planning Vote when it receives its capital allocation of £3,100,000 for the project in 2014. Should the allocation for the STW not be approved as part of the 2014 Budget debate, the funds will be sourced elsewhere from within the TTS budget and repaid to the Central Planning Vote in 2014.

Reason for Decision

Under Financial Direction 3.6 and the Public Finances (Jersey) Law 2005, the approval of the Minister for Treasury and Resources is required for any variations to heads of expenditure above £1,000,000. Authority to approve non-contentious budget transfers under £1,000,000 has been delegated to the Treasurer of the States.

Resource Implications

There are no manpower implications or increases in budgets or expenditure.

Action required

The Finance Director to request the Minister for Treasury and Resources to approve the budget transfers from revenue to capital and capital to revenue.

Written by:	Capital Accountant
Approved by:	Acting Director of Finance