Report of Chief Executive Officer by sofiaie

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									                                                                 MANSFIELD DISTRICT COUNCIL



                Report of Deputy Mayor and Portfolio Holder for Resources
                                           to
                                     TO CABINET
                                          on
                                   23 February 2009



        CAPITAL PROGRESS REPORT AND PRUDENTIAL INDICATORS TO 31
                            DECEMBER 2008


1.           SUMMARY

This report summarises the progress made on capital schemes up to the end of
December 2008 and performance against prudential indicators.

This report is included on the Forward Plan for submission to this Cabinet.

2.           RECOMMENDATIONS

Recommendation to Council

      (i)       That the budgets totalling £8,219,000 be carried forward into 2009/2010.

      (ii)      That the Capital Programme for 2008/2009 be reduced by £80,000 (see
                appendix 1C).

3.           BACKGROUND

3.1          Capital Progress

             The figures quoted in this report represent that element of capital expenditure
             that needs to be financed for the 2008/2009, using Major Repairs Allowance,
             capital receipts, contributions from reserves, grants and contributions.

             As can be seen from Appendix 1A, from a total budgetary provision of £29.1m
             for 2008/2009, expenditure of £15.7m (53.8%) has been incurred as at 31
             December 2008. Project officers have advised that a further £5.4m (18.6%) of
             expenditure is to be incurred in the remainder of 2008/2009. Appendix 2
             shows budgeted spend for 2008/2009 compared to spend incurred to 31
             December 2008.

             Appendix 4 gives details on the capital schemes requesting carry forwards on
             this financial year’s budget into 2009/2010. Explanations have been provided
             from the project officers on the reasons for the carry forwards.

             Below are brief descriptions and an update on progress so far on a number of
             the capital schemes for 2008/2009.
                                                          MANSFIELD DISTRICT COUNCIL




3.2   Liveability

      As stated in previous out-turn reports the main part of the Liveability scheme
      has been completed. This scheme is still in the maintenance period and thus
      the retention to the contractors is not yet due.

3.3   Town Centre, Reception and Contact Centre

      Access to Service scheme – As reported in previous out-turn reports this
      scheme is split into three parts, the development and expansion of the contact
      centre (telephony) for the key services, procurement of a new customer
      relationship management (CRM) system and the upgrading of the central
      reception at the Civic Centre. The upgrade work on the central reception is
      completed.

      It was previously reported that the procurement for the customer relationship
      management (CRM) tender was to be carried out by the end of December
      2008. This has not taken place due to the consideration of the ongoing
      revenue funding to cover the CRM software and the potential to use joint
      procurement of the CRM. These issues require some careful investigation and
      have resulted in a request for £294,000 to be carried forward into 2009/2010.

      Pay on Foot machines – The replacement pay on foot ticket machine at the
      Four Seasons Car Park have been installed and are now operational.

      The demolition of the St Johns Street Public Conveniences has been put on
      hold pending the outcome of the negotiations regarding the potential sale of
      this site. It is therefore proposed that this scheme is carried forward to
      2009/2010.

3.4   Regeneration and Neighbourhood Management

      The Passenger Interchange scheme is to create an attractive and safe link
      from the Visitor Interchange into the town centre primarily by redeveloping the
      site of the Queen’s Head Public House. The demolition of this building is to
      take place before the end of this financial year.

      A presentation took place on 22 January 2009 on the four designs showing
      the initial concept designs for the Redevelopment of the Queen’s Head Public
      House. The final design has not yet been decided upon.

      As reported in the previous out-turn report, there was an opportunity to seek
      grant funding from Alliance SSP for £50,000 towards the demolition of this
      building. Currently an expression of interest form for this grant funding has
      been submitted to Alliance SSP. This grant funding has now been increased
      to £106,500. The Council is waiting to see if this has been gained. This
      funding will be used toward the demolition of the building, the first stages of
      the design works for the new building and the first stages of public realm
                                                           MANSFIELD DISTRICT COUNCIL



      design works. Should this grant be approved; the financing on the capital
      programme will be amended accordingly. This amendment would not increase
      the expenditure on this scheme.

      The Refurbishment of William Kaye Hall scheme was approved by Council on
      6 January 2009. This scheme will enable improvements to the William Kaye
      Hall premises to offer a dual function of both a community and business
      centre. This scheme is fully funded by Alliance SSP, LEGI, Sure Start and
      CRT.

      The Maltings Enabling Works scheme was also approved by Council on 6
      January 2009. This scheme will support further strip out works, a full structural
      survey and structural consolidation work on the Maltings buildings. This
      scheme is fully funded by Alliance SSP.

3.5   Waste and Recycling

      The Waste Transfer Station scheme started operating at the beginning of
      January 2009 with the acceptance of street cleansing waste.

      There has been no progress on the mini recycling centre scheme since the
      last outturn report, with the final order of 12 mini recycling centres still
      outstanding.

3.6   Leisure and Cultural Services

      Sherwood Baths – the design briefs for the subcontractors, on the individual
      elements of the scheme i.e. flooring, windows have been produced. A
      delegated decision has been taken by the Portfolio Holder for Environment on
      29 January 2009 to confirm G F Tomlinson Limited as the preferred developer
      and to appoint them as the contractor on the basis of the tender sum
      received. (This delegated decision has also approved the recommendation for
      the facility to be reopened to the public on 4 January 2010).

3.7   Resources

      There have been twelve vehicles purchased to the 31 December 2008 as part
      of the fleet budget this financial year; these include a number of transit vans
      and a refuse vehicle.

3.8   Urban Housing Regeneration

      Meden Valley Making Places have acquired 41 properties from the 1 April
      2008 to 31 December 2008 as part of the Brownlow Road scheme. They have
      also dealt with the homeloss payments and disturbance costs for the
      residents of these properties.
                                                              MANSFIELD DISTRICT COUNCIL




3.9    HRA

       A separate progress report is to be submitted as a delegated decision on 16
       February 2009 by the Portfolio Holder for Housing. This report will provide an
       update following the quarter ending December 2008 on the Decent Homes
       programme.

3.10   Capital Receipts

       The table below shows the capital receipts received from the 1 April 2008 to
       31 December 2008.

                                                Target 2008/2009                Amount
                                                           £’000                 £’000
        General Fund                                           0                    50
        Housing Revenue          Account                   1,685                 1,348
        (HRA)

       There have been 14 Right to Buy sales on HRA properties to the quarter
       ended 31 December 2008, compared to a budgeted number of 20 for the
       2008/2009 financial year per the Decent Homes report. The land sales to the
       end of December 2008 are £1,348,000 compared with the budgeted target
       amount of £1,684,900 for 2008/2009. Land sales and Right to Buy sales are
       being monitored on a monthly basis.

3.11   Prudential Indicators

       Appendix 3 shows the key prudential indicators for the authority. The capital
       expenditure indicator reflects the gross expenditure incurred by the authority
       regardless of source of financing. The Authority is operating within its limits for
       external borrowing (Authorised Limit and Operational Boundary).

4.     OPTIONS AVAILABLE

       Members may not approve the virements, additions, carry forwards, section
       106 schemes and this will impact on the will impact on the Council’s ability to
       finance schemes and meet its corporate priorities in those areas.

5.     BUDGET/RESOURCE IMPLICATIONS

       Resource implications were considered when the capital programme was
       approved. Changes to the original budget are assessed and monitored on an
       on-going basis.
                                                               MANSFIELD DISTRICT COUNCIL




6.      RISK ASSESSMENT OF RECOMMENDATIONS AND OPTIONS

 Risk            Risk Assessment               Risk  Risk Management
                                               Level
 Expenditure     This report shows estimated Medium To mitigate this risk, project
 / income        expenditure     based     on        officers and the Head of
                 information currently known         Financial Services through
                 and makes assumptions               the Capital Programme
                 regarding the level of              Project     Board     closely
                 resources     available    to       monitor the schemes and
                 finance the expenditure.            highlight any matters which
                                                     may arise.
 Council’s       When schemes are not High           Project Board to assess the
 aims and        progressing in line with the        impact of any changes at its
 objectives      approved              capital       meetings and report any
                 programme there is a risk           issues arising.
                 that the Council will not
                 achieve its stated aims and
                 objectives in the corporate
                 plan.


7.      ALIGNMENT TO COUNCIL PRIORITIES

        The amendments to the Capital Programme will align resources to the
        Council’s priority schemes.

8.      IMPLICATIONS RELATING TO RELEVANT LEGISLATION

        S2 Local Government Act 2000 Well Being Powers
        Promotion of well-being
        (1) Every local authority are to have power to do anything which they consider
        is likely to achieve any one or more of the following objects—
        (a) the promotion or improvement of the economic well-being of their area,
        (b) the promotion or improvement of the social well-being of their area, and
        (c) the promotion or improvement of the environmental well-being of their
        area.
        (2) The power under subsection (1) may be exercised in relation to or for the
        benefit of—
        (a) the whole or any part of a local authority’s area, or
        (b) all or any persons resident or present in a local authority’s area.
        (3) In determining whether or how to exercise the power under subsection (1),
        a local authority must have regard to their strategy under section 4.
        (4) The power under subsection (1) includes power for a local authority to—
                                                              MANSFIELD DISTRICT COUNCIL



      (a) incur expenditure,
      (b) give financial assistance to any person,
      (c) enter into arrangements or agreements with any person,
      (d) co-operate with, or facilitate or co-ordinate the activities of, any person,
      (e) exercise on behalf of any person any functions of that person, and
      (f) provide staff, goods, services or accommodation to any person.
      (5) The power under subsection (1) includes power for a local authority to do
      anything in relation to, or for the benefit of, any person or area situated
      outside their area if they consider that it is likely to achieve any one or more of
      the objects in that subsection.
      (6) Nothing in subsection (4) or (5) affects the generality of the power under
      subsection (1).

9.    COMMENTS OF STATUTORY OFFICERS

      Head of Paid Service – No specific comments

      Section 151 Officer – Own report

      Monitoring Officer - No specific comments

10.   CONSULTATION

      The estimated expenditure and income, together with the comments on the
      progress of schemes have been provided by the relevant Heads of Service.

11.   BACKGROUND PAPERS

      Capital Programme Project Board minutes are available from the Corporate
      Accountancy Manager.

      Report Author        - Claire Haynes
      Designation          - Corporate Accountancy Manager
      Telephone            - 01623 463495
      Email                - chaynes@mansfield.gov.uk
                                                        MANSFIELD DISTRICT COUNCIL




                                                                 Appendix 1A
Total expenditure for the current capital programme

                                   2008/2009   Expenditure     Forecast for    Forecast
                                    Budget        to 31        remainder of    balance
                                                December       2008/2009         as at
                                                  2008                        31/03/2009
                                       £’000           £’000          £’000           £’000
Liveability                              122              42              9             51
Town Centre, Reception and
Contact Centre                           440            115               9            124
Regeneration and
Neighbourhood Management               3,944           1,558          1,037           2,595
Waste and Recycling                       40              40              0             40
Leisure and Cultural Services          5,648            732              72            804
Economic / Business
Development (Industrial
Development Programme
Fund)                                     66             60               6             66
Resources                              1,008            426             274            700
Urban Housing Regeneration             7,991           5,900          1,636           7,536
Completed schemes                         13               8              5             13
Housing Revenue Account                9,512           6,528          2,294           8,822
                                      28,784          15,409          5,342          20,751
Corporate Charges                        324            242              82            324

Estimated admin costs of asset            40              38              2             40
sales
Total expenditure to be               29,148          15,689          5,426          21,115
financed

The private developer’s element of capital schemes is not shown as part of the
formal capital programme and the above programme only shows expenditure /
income directly incurred / received by the Council. The Council still needs to be
aware of the schemes with a private developers element, these are listed below:

Private developer schemes 2008/2009
Visitor Interchange
White Hart Development
Stockwell Gate
Pleasley Hill
                                                       MANSFIELD DISTRICT COUNCIL




                                                                 APPENDIX 1B
Financing of the Capital Programme 2008/2009


                                                              2008/2009       2008/2009
                                                              Budgeted          Forecast
                                                               financing       financing

                                                                   £’000             £’000
Total expenditure is financed by
Potential capital allowances     (b/fwd + 2008/2009)               1,933             1,551

Revenue contributions to capital outlay                            2,159             2,159
Planned maintenance                                                1,250             1,250
MRA                                                                3,833             3,833
Capital Receipts / Reserve
- Housing (Council House Sales)                                      273               273
- Non-housing (other Sales)                                       10,664             5,548
Grants and contributions                                           7,662             5,887
Capital Fund Reserve
- Specific Reserves                                                  430               115
- Section 106                                                        944               499
                                                                  29,148            21,115
                                                         MANSFIELD DISTRICT COUNCIL



                                                                   APPENDIX 1C

Reconciliation of 2008/2009 budget to forecasted spend to 31 March 2009

                                                                                       £’000
2008/09 budget                                                                        29,148
 The Maltings enabling works (approved by Council 6 January 2009)                        180
William Kaye Hall (approved by Council 6 January 2009)                                    86
Removal of
Section 106 schemes included in the capital programme relating to revenue                -80
Carry forward to 2009/2010                                                            -8,219
Forecasted spend to 31st March 2009                                                   21,115

The following schemes require an amendment to the Capital Programme

                                                                                       £’000
Section 106 schemes included in the capital programme relating to revenue                -80
Total                                                                                    -80
                                                                                                                                    MANSFIELD DISTRICT COUNCIL




                    Comparing total budget for 2008/2009 with actual expenditure to 30 June 2008, 30 September 2008
                                                        and 31 December 2008


                       Estimated admin cost of asset sales

                                        Corporate charges

                                Housing Revenue Account

                                      Completed schemes

                              Urban Housing Regeneration
Schemes




                                                Resources

          Economic Development and Business Development

                             Leisure and Cultural Services

                                     Waste and Recycling

             Regeneration and Neighbourhood Management

                Town Centre, Reception and Contact Centre

                                                 Liveability

                                                               0   1000      2000       3000     4000     5000      6000     7000      8000     9000   10000
                                                                                                    Amounts in £'000

                        Actual expenditure to 30.6.08   Actual expenditure to 30.9.08   Actual expenditure to 31.12.08   Budget for 2008/2009

           APPENDIX 2
                                                        MANSFIELD DISTRICT COUNCIL



                                                                     APPENDIX 3


Prudential Indicators to be reported on a quarterly basis.

                                                2008/2009      2008/2009
                                                 Target         Forecast
                                                   £’000          £’000
Capital Expenditure
Non-HRA                                            19,385         12,049
HRA                                                 9,763          9,066

Authorised Limit for external debt
Borrowing                                          83,000         83,000
Other Long term Liabilities                            87             87
                                                   83,087         83,087

Operational Boundary for external debt
Borrowing                                          75,000         75,000
Other long term liabilities                            87             87
                                                   75,087         75,087

								
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