135.—(1) Before the start of each local financial year the F198[chief executive] shall prepare and submit to the elected council a report indicating the programme of capital projects proposed by the local authority for the forthcoming and the following two local financial years having regard to the availability of resources.

(2) A report prepared under subsection (1) may be considered at the local authority budget meeting or at such other meeting as the elected council may by resolution decide.

(3) In considering the question of the resources likely to be available to it a local authority shall so consider—

(a) on the basis of a realistic and prudent assessment of the position, and

(b) on the basis of the information available to it at the time and having regard to the measures proposed by the authority to raise funding itself.