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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.
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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
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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.
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• 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
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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.
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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
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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)
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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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