Capital Plan Outturn Report Charnwood Borough Council

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Capital Plan Outturn Report Charnwood Borough Council Powered By Docstoc
					                           CABINET - 7TH JUNE 2012

           Report of the Head of Finance and Property Services

                    Lead Member: Councillor T Barkley

                                    Part A

ITEM 10             Capital Plan Outturn Report 2011/12

Purpose of Report

This report shows the total expenditure on the Capital Plan for the year
2011/12 compared with the budget, which was reported to Cabinet in the
Capital Plan Amendment Report on 7 July 2011 (minute 23), plus subsequent
reports on 29 September 2011 (minute 53), 22 December 2011 (minute 77)
and 15 March 2012 (minute 114). In addition, the report details those
schemes that require carry forward of budget to 2012/13 and shows the
provisional arrangements for the financing of the Plan.

Recommendations

1. That the outturn position for 2011/12 be noted and that the carry forward of
   project budgets totalling £786k be approved.

2. That the provisional financing of the Plan set out in Table 2 be noted.

Reasons

1. To enable projects to be completed

2. To indicate how the Plan is likely to be financed.

Policy Justification and Previous Decisions

The Capital Plan is fundamental to all strategic aims of the Council.

Implementation Timetable including Future Decisions and Scrutiny

Overview Scrutiny Group will have the opportunity to consider this report on
30 May 2012. This report is also available for scrutiny by the Performance
Panel on 3 July 2012.

Financial Implications

The financial implications of the recommendations are covered in the body of
this report.




                                       1
Risk Management

The risks associated with the decision Cabinet is asked to make and
proposed actions to mitigate those risks are set out in the table below.

Risks           Likelihood Impact   Managing      Risk Management Actions
Identified                          Risk          Planned
Insufficient    Possible   Major    Amber         The funding of the Capital
funding                                           Plan is regularly monitored
                                                  and any apparent shortfalls
                                                  are brought to the attention
                                                  of Cabinet with suggested
                                                  solutions.
General      Possible      Moderate Amber         The Capital Plan is
Risks                                             controlled through Project
associated                                        Boards for larger schemes
with capital                                      and Project Officers for
expenditure                                       smaller schemes.
                                                  Progress, risks and
                                                  possible problems are
                                                  notified to these boards
                                                  and to the Capital
                                                  Programme Team for all
                                                  projects of £50k or more.
                                                  Such risks are identified
                                                  and dealt with and reported
                                                  as necessary to Cabinet
                                                  and the Performance
                                                  Panel.




Key Decision:              Yes

Background Papers:         Capital Plan Amendments Reports on 7 July 2011,
                           29 September 2012, 22 December 2011, 15 March
                           2012.
                           Working papers in Finance.

Officers to Contact:       Janet Pomfret 01509 634826
                           janet.pomfret@charnwood.gov.uk
                           John Casey, 01509 634810
                           John.casey@charnwood.gov.uk




                                     2
                                   Part B
Background

1.     The Capital Plan for 2011/12 was reported to Cabinet on 7 July 2011
and, following amendments between September 2011 and March 2012, the
final budget was £13,583k, which is £859k (6%) lower than the original
budget. This Plan was approved by Council on 12 September 2011, minute
35.1.

2.     Table 1 below shows the expenditure by the directorates and the total
capital spend of £13,202k was 97% of the final budget, compared to 97.2% in
2010/11. Expenditure on General Fund projects was £6,509k in 2011/12
being 99.6% of budget, compared with 96.4% of budget in 2010/11. The HRA
expenditure of £6,693k was 94.9% of budget compared to 98% in 2010/11.

3.     The carry forwards detailed in Appendix 1 have been requested by the
Officers responsible for the schemes.

Table 1
                                                Under/  Net      Net
                                         Actual (Over) Carry   Saving/
Capital Outturn 2011/12           Budget Spend Spend Forward (Overspend)
Directorate                        £’000 £’000   £’000 £’000    £’000
Neighbourhoods and
Community Wellbeing                   645      453      192        108             84
Corporate Services                  4,300    4,735    (435)        134          (569)
Housing, Planning,
Regeneration and Regulatory -
General Fund                        1,590    1,321      269        189             80
General Fund Total                  6,535    6,509       26        431          (405)
Housing, Planning,
Regeneration and Regulatory -
HRA                                 7,048 6,693         355        355              0
Total Capital Plan                 13,583 13,202        381        786          (405)

4.     The amount requested to be carried forward includes the following
major items:
   • Charnwood Community Grants, £9k – this is all committed on approved
       grants.
   • Green Flag Parks, £22k – this is required in 2012/13 to carry out work
       identified in surveys to ensure the Green Flag status at Queens Park
       and the Outwoods is maintained.
   • Leisure Services Parks and Sports Ground Asset Management
       Schemes, £55k – required in 2012/13 for asset condition works which
       will be undertaken when all the asset condition surveys have been
       completed.
   • Community Sports Facilities Programme, £19k – the carry forward is
       required to pay grants for committed schemes.
   • Replacement Hardware, £23k – this is required to support the
       implementation of the hardware required for the desktop virtualisation
       project. Both the Hardware Replacement and Desktop virtualisation
       will be implemented in a phased approach and will impact on all CBC
       and CNH users.
                                     3
   •   Web Development, £8k – required to meet Web partnership
       development.
   •   Desktop virtualisation infrastructure, £40k and Sharepoint 2012, £30k –
       these schemes were only approved in March 2012 , not allowing
       sufficient time to complete the schemes so they will take place in
       2012/13
   •   Sound System – Preston Room, Woodgate Chambers, £30k – the
       scheme has slipped into 2012/13 and the work is now complete.
   •   Planning/Building Control and Land Charges System, £17k – required
       for implementation of the M3 project, which is the database and
       operating system for planning, enforcement, building control and land
       charges. The project is expected to be completed in early 2012/13.
   •   Regional Housing Pot £172k – is ring-fenced and is required in
       2012/13 to cover commitments of £74.5k. The remainder will be used
       for:
            o 50% Partnership Grants to encourage empty home owners to
               bring their properties back into use, in exchange for the Council
               having nomination rights, and
            o Discretionary Grants for vulnerable home owners where
               remedial works are required to prevent an imminent risk to the
               health or safety of the occupants, and
            o To fund assistive technologies – mainly lifeline grants to enable
               vulnerable people to remain living in their homes independently.
   •   HRA - £355k over various schemes which were not completed in
       2011/12 and are to continue in 2012/13.

5.    Appendix 1 shows the performance of each scheme in the Capital Plan
against its budget.

6.    Expenditure on the Loughborough Eastern Gateway and
Loughborough Railway Station Forecourt schemes is expected to be £552k
over budget on a total budgeted cost for both schemes of £7,488k, an
overspend of 7.4%. These schemes have helped to deliver:
   • 91 affordable new homes to which the Council can allocate tenants,
   • a new link road that has removed heavy traffic from Ratcliffe Road and
      Burder Street streets and improved the quality of life fro the residents
      of that area
   • a new station forecourt with much improved bus, cycle and car
      facilities, and
   • refurbishment of Loughborough station itself with a new footbridge and
      lifts plus an extended platform, new canopies etc.

7.     The Council masterminded this development and it has generated a
total investment worth around £20m.      However, both schemes were
complicated involving Nottingham Community Housing Association, the
Homes & Community Agency, Growth Point Fund, Network Rail, East
Midlands Trains, Leicestershire County Council, William Davis, Ringway
Group, East Midlands Development Agency and Prospect Leicestershire.

8.    This made direct control of the expenditure more difficult and has
especially caused problems with the road contract. That contract was
managed by Leicestershire County Council as they are the highways authority
and have the necessary resources to manage contracts such as these.
However, delays were encountered due to the extremely poor weather in the
                                       4
2010/11 winter as well as issues relating to the diversion of utilities. A further
problem in respect of the works on the forecourt was the need to suspend
these works whilst a new footbridge was installed over the railway itself.

9.     The potential overspend could have been significantly higher, however
negotiations with partners have resulted in savings of around £500k, most
notably the reduction of the ‘Commuted Sum’ for the adoption of the highway
to LCC of £200k and the amount the highways contractor will now contribute
towards the overspend amounting to an additional £100k.

10.    These physical problems were replicated in the funding of the scheme
which was impacted by the closure of certain funding streams as a result of
the economic downturn and general central government savings. This
resulted in Charnwood Borough Council having to support overspends in
certain areas in order to ensure that the schemes were completed and the
benefits that they brought to the borough were realised.

11.   The final expenditure figures are still subject to further negotiation and
the amounts included in this report are a best estimate at the current time.

12.    £30k of the overspend has been covered by funds from one of the
other partners and the remainder will be met by a contribution from the
Council’s revenue savings in 2011/12 which are explained in the Revenue
Outturn 2011/12 report. The Council is able to fund this amount due to its
continuing revenue savings programme and its careful management of its
reserves which allow this sum to be released without causing a significant
negative impact on its financial position. Overall the council has managed to
deliver these large and complex projects for the benefit of the borough as a
whole and without recourse to a request for additional funding from Council
Tax payers.

13.    There was an ‘overspend’ of £23k on Disabled Facilities Grants against
the original budget. However, these extra amounts were spent as an equal
amount of additional funding from the Department for Communities and Local
Government and Leicestershire and Rutland NHS Primary Care Trust was
received during the year.

14.    There were savings on twenty four schemes during the year ranging
from a few pounds to over £45k. These savings, which total over £213k, are
a result of schemes costing less than budget and in some cases old schemes
no longer proceeding due to changes in circumstances. The funds saved are
returned to central funding and will be used for other schemes in the future.

15.    The two largest savings are on Renovation Grants, £46k, and Town &
Village Regeneration Schemes, £44k. The former is a ‘Block Sum’ and
usually any amounts not spent or committed in the year are not carried
forward. The latter scheme has had no activity for over two years and it is
anticipated that this type of funding will now come through the new Growth
Support Fund.




                                        5
16.    The provisional funding arrangements, which are still subject to audit,
for 2011/12 are detailed in Table 2 below.

Table 2
                                                             Provisional
Type of Finance                                               Amount
                                                                £’000
Grants and Contributions                                              4,712
Capital Receipts                                                      1,817
General Fund and HRA Revenue Contributions                               727
Borrowing                                                             2,620
MRA                                                                   3,326
                                                                       13,202

17.    After allowing for the funding shown above there will be a carry forward
of funding for the General Fund of £3,066k. £379k of this will be required to
fund the carry forward items, if they are approved, and £2,277k will be used
towards the 2012/13–2014/15 General Fund Capital Plan. This will leave a
balance of £410k for future projects.


18.   Appendix

Appendix 1 - Capital Plan 2011/12 Detailed Scheme by Scheme Outturn




                                      6
                                                               CAPITAL PLAN 2011/12 - OUTTURN
                                                                                                                                                               Appendix 1



                                                                                               2011/12      2011/12      Gross under/                        Savings/
Scheme Details                                                                                 Budget        Actual      (Overspend)         Carry Forward (Overspend)
                                                                                                 £             £              £                   £               £

CAPITAL PLAN BY DIRECTORATE

Community Wellbeing                                                                              645,200      453,458          191,742             107,610         84,132


Corporate Services                                                                              4,300,000    4,734,936       (434,936)             134,040      (568,976)

Housing, Planning & Regeneration & Regulatory Services - General Fund                           1,590,100    1,321,035         269,065             188,940         80,125


Sub-Total - General Fund                                                                        6,535,300    6,509,429            25,871           430,590      (404,719)

Housing, Planning & Regeneration & Regulatory Services - HRA                                    7,048,100    6,692,671         355,429             355,420               9

                                                                               Grand Total     13,583,400   13,202,100         381,300             786,010      (404,710)


Community Wellbeing


   JR         Z263    Charnwood Community Grants                                                  71,400       62,308               9,092              9,090             2
   DW         Z167    Barkby Brook Improvements                                                   43,600                          43,600                           43,600
   JR         Z041    Cultural & Leisure Services Asset Management Works                           9,400        9,420                 (20)                            (20)
   JR         Z192    Syston Recreational Projects                                                68,600       68,572                   28                              28
   JR         Z193    Thurmaston Multi Use Games Area                                              2,800                            2,800              2,800
   JR         Z165    Nanpantan Sports Ground                                                    259,000      262,823             (3,823)                          (3,823)
   NG         Z265    Green Flag Parks                                                            24,800        2,977             21,823              21,820              3
   JR         Z286    Sports Ground Improvement Scheme                                            20,900       22,405             (1,505)                          (1,505)
   NG         Z287    Cemetery Improvement Scheme                                                  1,400        1,325                   75                               75
   NG         Z288    Leisure Services Parks & Sports Ground Asset Management Scheme              55,400        (120)             55,520              55,400           120
   NG         Z298    Southfields Park Recreational Improvements                                  16,200       12,324               3,876                            3,876
   SW         Z327    Public Conveniences - Charging Equipment                                    21,900                          21,900                           21,900
   JR         Z344    Extension to Birstall Sports Pavillion                                      11,400       11,424                 (24)                             (24)


                      Block Sums
   SW         Z057    Public Art Programme                                                        12,800                          12,800                           12,800
   JR         Z692    Community Sports Facility Programme                                         18,500                          18,500              18,500
   JR         Z052    Play Areas Disability Access Grants Scheme                                   7,100                           7,100                              7,100

                                                               Community Wellbeing - Total       645,200      453,458          191,742             107,610         84,132


Corporate Services

   KB         Z085    Replacement Hardware Programme                                               70,000      47,436           22,564                22,560            4
   KB         Z317    Web Development                                                              10,000       2,197            7,803                 7,800            3
   KB         Z318    Vmware Upgrade                                                               50,000      49,878              122                                122
   KB         Z353    Qmatic Upgrade                                                               14,100                       14,100                             14,100
   KB         Z320    Sharepoint Upgrade                                                            2,600                        2,600                              2,600
   KB         Z336    Storage Area Network (SAN)                                                   30,000       31,943         (1,943)                            (1,943)
   SH         Z126    Loughborough Eastern Gateway                                              2,775,400    3,239,513       (464,113)                          (464,113)
   SH         Z312    Loughborough Railway Station Forecourt                                    1,185,400    1,272,935        (87,535)                           (87,535)
   SH         Z152    Southfields - Office Accommodation Strategy - Phase 3                                      5,322         (5,322)                            (5,322)
   SH         Z284    Beehive Lane Car Park - Energy Efficient Lighting Installation                             4,667         (4,667)                            (4,667)
   SH         Z297    Southfields Annexe Site - Disposal & Associated Costs                                        138           (138)                              (138)
   SH         Z305    Old Magistrates Court - Refurbishment                                                     14,000        (14,000)                           (14,000)
   SH         Z323    Southfields Phase 2 - Refurbishment                                          7,500        19,045        (11,545)                           (11,545)
   SH         Z345    Derby Road Depot - Roof Replacement                                         37,000        33,546           3,454                              3,454
   AL         Z341    Credit Card Surcharge Module                                                18,000        14,316           3,684                 3,680            4
   KB         Z358    Desktop Virtualisation Infrastructure                                       40,000                        40,000                40,000
   KB         Z359    Sharepoint 2010                                                             30,000                        30,000                30,000
   AW         Z360    Sound System - Preston Room, Woodgate Chambers                              30,000                        30,000                30,000

                                                                  Corporate Services - Total    4,300,000    4,734,936       (434,936)             134,040      (568,976)




                                                                               7
                                                                                                                                                             Appendix 1



                                                                                              2011/12       2011/12     Gross under/                       Savings/
Scheme Details                                                                                Budget         Actual     (Overspend)        Carry Forward (Overspend)
                                                                                                £             £              £                  £               £

Housing, Planning & Regeneration & Regulatory Services - General Fund

    MT         Z170    EIP - Heritage Plaque Scheme                                                 2,600                         2,600                             2,600
    MT         Z178    PAP - Parish Green, Loughborough                                             9,000                         9,000                             9,000
    MT         Z839    Shakespeare Street, Loughborough                                           1,200                           1,200                           1,200
    MT         Z303    Town & Village Regeneration Schemes                                       44,100                          44,100                          44,100
    MT         Z309    St Peter's Court, Syston & Londsdale Road, Thurmaston                         400                            400                              400
   MM          Z273    Planning/Building Control and Land Charges System - Northgate             18,200           761            17,439             17,430             9
    AT         Z342    Air Quality Monitor                                                       13,400        13,421              (21)                              (21)

                       Block Sums
    JR         Z800    Historic Building Grants                                                  15,000        14,874               126                              126


                       Renovation Grants
    RS         Z200    Renovation Grants                                                        105,000        59,164            45,836                          45,836
    RS         Z210    Disabled Facilities Grants                                               679,300       702,430        (23,130)                           (23,130)

    RS         Z141    Regional Housing Pot Grant                                               701,900       530,385         171,515            171,510               5

              Housing, Planning & Regeneration & Regulatory Services - General Fund - Total    1,590,100    1,321,035         269,065            188,940         80,125


Housing, Planning & Regeneration & Regulatory Services - HRA

    EM                 Decent Homes
    TM         Z448    Kitchen & Bathroom                                                        491,500      464,071            27,429             27,420              9
    TM         Z005    Planned Central Heating                                                 1,180,000    1,180,013               (13)                             (13)
    TM         Z011    PVCu Window                                                                82,100       82,100
    TM         Z402    Responsive Central Heating                                                700,000      699,540               460                460
    TM         Z434    Asbestos                                                                   20,000        2,857            17,143             17,140             3
    TM         Z454    Electrical Upgrades                                                       398,800      398,799                 1                                1
    TM         Z294    Major Improvements to Voids                                               100,000       90,713             9,287              9,280             7

    TM         Z459    Re-roofing                                                               120,000       117,112             2,888              2,880             8
    TM         Z857    Housing Contracts Procurement Costs                                      448,600       448,546                54                               54



                       Disabled Adaptations
    TM         Z300    Major Adaptations                                                        350,000       349,509               491               490              1
    TM         Z301    Minor Adaptations                                                         76,000        75,777               223               220              3
    TM         Z302    Stairlifts                                                                40,000        39,870               130               130

    TM         Z433    Tenants Bids                                                               32,800       22,118            10,682             10,680             2
    TM         Z456    Non-Traditional Refurbishment                                           2,001,000    1,999,311             1,689              1,680             9
    TM         Z457    Loft Insulation                                                                          (424)               424                              424

    TM         Z326    Aingarth Sheltered Housing - Access Rights                                56,400        54,422           1,978              1,970                8
    TM         Z329    CESP Heating and Insulation Project                                      350,000        89,327         260,673            260,670                3
    TM         Z335    Dudley Court Sileby - 1st floor Conversion of Bedsits                     50,000        27,598          22,402             22,400                2
    TM         Z340    Aingarth, Lougborough - Conversion of Bedsits                              7,500         7,539             (39)                               (39)

    SH         Z455    New Build Council Houses                                                 543,400       543,873             (473)                             (473)

                      Housing, Planning & Regeneration & Regulatory Services - HRA - Total     7,048,100    6,692,671         355,429            355,420               9




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