Budget transfer: Reallocation of Transport and Technical Services Infrastructure Vote

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A decision made 27 February 2012:

Decision Reference: MD-TR-2012-0018
Decision Summary Title:	Reallocation of the TTS Infrastructure works rolling annual vote to one off major infrastructure projects		Date of Decision Summary:	06 February 2012
Decision Summary Author:	Head of Decision Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Reallocation of the TTS Infrastructure works rolling annual vote to one off major infrastructure projects		Date of Written Report:	06 February 2012
Written Report Author:	Business Manager		Written Report : Public or Exempt?	Public
Subject: 2012 budget transfer totalling £3,700,000 from the Transport and Technical Services Infrastructure works rolling annual vote to the Phillips Street Shaft, the Ash Waste Storage Cell and the Replacement Asset Capital heads of expenditure.
Decision(s): The Minister approved budget transfers totalling £3,700,000 from the Transport and Technical Services Infrastructure works rolling annual vote to the Phillips Street Shaft, the Ash Waste Storage Cell and the Replacement Asset Capital heads of expenditure.
Reason(s) for Decision: Article 15(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury & Resources, be used for the purposes of another head of expenditure.
Resource Implications: The Transport and Technical Services Infrastructure works rolling annual vote to decrease by £3,700,000 in 2012 and the projects listed above to increase in total, by an identical amount. This decision does not change the total amount of expenditure approved by the States.
Action required: Head of Decision Support to advise the Transport and Technical Services Capital Accountant and the Head of Financial Performance Reporting that the transfer has been approved.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer: Phillips Street Shaft, Ash Waste Storeage Cell, and Replacement Asset Capital Heads of Expenditure

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Treasury and Resources

Ministerial Decision Report

Reallocation of the TTS Infrastructure WORKS Rolling ANNUAL VOTE to one off major infrastructure projects

Purpose of Report

To enable the Minster to approve a 2012 budget transfer totalling £3,700,000 from the Transport and Technical Services Infrastructure works rolling annual vote to the Phillips Street Shaft, the Ash Waste Storage Cell and the Replacement Asset Capital heads of expenditure.

Background

Philips Street Shaft

The estimated cost of the Phillips Street Shaft Project was £5,600,000. A budget of £3,600,000 for the Phillips Street Shaft Project has been included within the draft Annual Business Plan 2012. As this project is on the drainage infrastructure network this budget was approved on the proviso that TTS fund the remainder from their original infrastructure capital allocation. To improve monitoring of the financial budgets it was decided that the budget and related business units should be moved to a separate head of expenditure.

Ash Waste Storage Cells

The operating efficiencies created by the Energy from Waste Plant have increased the hazardous ash waste residue produced. This has resulted in a greater need to create ash waste storage cells. Increased environmental regulations had led to the costs increasing from approximately £300,000 to the region of £1,000,000.

Ash cells were previously funded from the TTS infrastructure works rolling annual vote. However, under the JFReM, these ash cells do not meet the accounting definition for infrastructure. As a result the funding earmarked for these ash cells from the infrastructure works rolling annual vote should be moved to a separate head of expenditure.

Replacement Assets

The States of Jersey Business Plan for 2012 allocated TTS a sum of £987,000 over 3 years. Of this only £253,000 is allocated for 2012. TTS plan to invest an extra £100,000 into replacing infrastructure assets such as pumping stations in 2012 from the Infrastructure works rolling annual vote to enable greater economies of scale and to reduce future maintenance costs going forward.

Transfers

The following transfers are requested by the Transport and Technical Services Department which do not need approval from the CMB Capital Sub-Group.

£2,000,000 from the Infrastructure works rolling annual vote to the head of expenditure for Phillips Street Shaft (Q00BP12010)
£1,600,000 from the Infrastructure works rolling annual vote to the head of expenditure for Ash Waste Storage Cells (Q00DD11003)
£100,000 from the Infrastructure works rolling annual vote to the head of expenditure for the Replacement Assets (Q00MC10012).

Recommendation

It is recommended that the Minister approves the above budget transfers totalling £3,700,000 from the Transport and Technical Services Rolling Infrastructure works rolling annual vote to the Phillips Street Shaft, the Ash Waste Storage Cell and the Replacement Asset Capital heads of expenditure.

Reason for Decision

Article 15(1)(a) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury & Resources, be used for the purposes of another head of expenditure.

Resource Implications

The Transport and Technical Services Infrastructure works rolling annual vote to decrease by £3,700,000 in 2012 and the projects listed above to increase in total, by an identical amount. This decision does not change the total amount of expenditure approved by the States.

Report author : Business Manager	Document date : 06/02/2012
Quality Assurance / Review : Head of Decision Support	File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2012-0018 - tts capital infrastructure rolling vote to major infrastructure projects - kh\wr - tts capital infrastructure rolling vote to major infrastructure projects - kh.doc
MD sponsor : Treasurer of the States