Meeting documents

Council Executive - 12^th January 2005

Financial Planning Issues - Implications of Major Projects - Update

1. Since drafting the report officers have, in consultation with the relevant Executive Members, looked more closely at the position regarding the Bath Western Riverside Project (BWR).

2. As a category D project (see para 5.8), the draft financial plan has been prepared for BWR on the basis of the existing financial plan approval rather than the latest cost estimate. Within the conclusions section (para 7.3) there is reference to a review of the project in order to justify and/or limit further Council investment in the project.

3. However in considering the report, the Executive should be mindful of the Council's commitment to the Co-Operation Agreement with SWERDA and the development partner. Funding is therefore needed to the stage of the completion of the draft Development Agreement and that, given current projections, will require draft financial plan funding of c£1.5M to be brought forward from 2006/07 - 2008/09 to 2005/06, but still contained within the Council's planned £5M contribution to the project.

4. To progress the project from draft development agreement to an unconditional agreement and first stage implementation would cost approximately £1M and this would be in excess of the Council's planned £5M contribution to the project. This sum would be needed in the period 2006/07 - 2007/08 and would, subject to confirmation from the Council's external auditors, require a mix of capital and revenue funding.