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					                                                            Agenda Item No.
                                                            20th September 2006
To the Mayor and Members of the
CABINET

CAPITAL PROGRAMME - 2006/07: PROGRESS/ POSITION UPDATE 1

Decision Taker   Relevant Overview & Scrutiny Sub-        Wards      Key Decision
                 Committee                                Affected
Cabinet          Overview & Scrutiny Management           All        Yes, financial
                 Committee                                           implications over £100k
                                                                     (K641)

Purpose

   1. This report informs the Cabinet of the progress made on delivering the capital
      programmes which have been approved by the Council. It also informs the Cabinet
      of the current position of capital expenditure and the current position of available
      resources.

Recommendations

   2. The Cabinet is asked to:
   a) note that capital programmes progressed as planned during the period of April 2006
      to June 2006.
   b) note that the revised estimated outturn for 2006/07 has reduced to £112.1m
      (-15.4%) from £132.5m.
   c) note that the revised estimated capital resources for 2006/07 have reduced to
      £108.9m (-15.9%) from £129.5m.
   d) note that the revised overprogramming total across all programmes for 2006/07 is
      now £3.2m (2.9%). This is still within the tolerances recommended by the Audit
      Commission but needs to be closely monitored over the next 3 quarters.
   e) approve the adjustment to and incorporation of additional funding to 2006/07-
      2008/09 Capital Programme as detailed in appendices 1 to 5.

Background

   3. On 9th March 2006, the Council approved a capital programme of £401.8M for
      2006/07 to 2008/09.

   4. This capital programme included an estimated spending profile of £132.5M for
      2006/07. The resources profile for the same period showed a £2.9M (2%)
      overprogramming which was within the tolerances recommended by the Audit
      Commission.

   5. This report is the first Capital Programme Progress/ Position Update to the Cabinet
      during the 2006/07 financial year and it covers:
         a) the impact of the 2005/06 Outturn position (reported to the Cabinet on 12 th
             July 2006) on the 2006/07 capital programme.
         b) the results of the first capital monitoring process, including revised
             projections and changes in the expected level of funding.
Summary
Programme Progress

   6. Overall, capital programmes progressed as planned in the first three months of
      2006/07 (Q1). The majority of the programme and project milestones were
      delivered on time. Key achievements to date are summarised below:

         a) The Waterfront Strategic Acquisition Programme acquired 57% of the total
            properties needed in order to complete the site assembly.
         b) Stage 3 applications for Waterfront Engineering Works and Strategic
            Acquisitions were submitted to Yorkshire Forward (YF).
         c) The Competitive Dialogue Process for Civic and Cultural Quarter (CCQ) was
            completed and the Invitation to Tender (ITT) and the draft development
            agreement were issued.
         d) Construction of Armthorpe Technology Block was completed.
         e) Bentley Training Centre refurbishment and Hedgerow planting schemes
            were completed.
         f) Information Technology Infrastructure improvement programme was initiated.

Capital Expenditure to Date & Revised Projections for 2006/07

   7. Capital Expenditure to 30th June 2006 totalled £18.9m The majority of this
      expenditure is related to projects at the physical construction phase or
      implementation stage (e.g. Lakeside Sports Complex £5m, Hyde Park Acquisition
      £1.6m, Waterfront Public Realm £1.4m, Hatfield Visual Art College £0. 827m,
      Cusworth Hall& Park Renovation £0.71m)

   8. Forecasted capital expenditure for 2006/07 has reduced by £20.4m to £112.1m.
      The original budget versus revised projections are represented in the graph below:
    9. The most recent capital resources estimates indicate that the total
       overprogramming across all programmes is £3.2m (2.9%). This total is within the
       tolerances recommended by the Audit Commission.

Major Changes to the Programme Expenditure

    10. Latest projections show that the capital expenditure has reduced by £20.4m for
        2006/07. This £20.4m has been re-profiled into the 2007/08 and future years.

    11. The main reason for this change is the adoption of the alternative Housing Capital
        Programme (HCP)1. The adoption of the alternative HCP was necessary because
        the Audit Commission‟s inspection date for the ALMO was moved from September
        2006 to March 2007. The adopted programme does not include the additional
        £8.4m funding which is attached to the “two-star status” and reflects the fact that
        the relevant expenditure will only be incurred when the two-star status achieved in
        2007/08.

    12. There has also been a reduction in the expected level of grant provision from
       national government for the HCP. The “Capital Receipts Pooling System”2
       generated low levels of capital receipts during 2005/06 across the UK. This meant
       that regional and local allocations for housing regeneration programmes were
       reduced by ODPM at the national level. As a result, 2006/07 allocations for Priority
       Estates (Pathfinder) and Green Corridor programmes within the HCP were reduced
       by £3.4m and £0.556m respectively.

    13. Similarly, the expected level of external funding for schemes such as Woodfield
        Primary (£3.5m from NDC) and Kingsway Estates (£0.88m from NRF) have been
        adjusted in order to reflect the fact that the results of funding applications were not
        favourable for these schemes.

    14. In addition, there are a number of schemes which progressed quicker than
       originally planned in 2005/06. Therefore, the 2006/07 profiles for these schemes
       were reduced accordingly to accommodate this accelerated expenditure in the
       2005/06 outturn. Examples include

            a) Housing - Hyde Park Acquisitions (-£2.9m): there was greater than
               anticipated take up in acquisition of the housing stock, resulting in an
               overspend in 2005/06 and therefore a 2006/07 funding shortage. The project
               continues to incur expenditure and is being closely monitored.

            b) Housing- Decency Programme (-£1.8m): additional spending on the decency
               programme in 2005/06 was met mostly from balances on the Housing Major

1              th
  Note that on 9 March 2006, the Council approved two programmes for the HCP:
a) Housing Capital Programme (with 2 star ALMO Funding) assumed that the two-star status would be
achieved in 2006/07 following an inspection by the Audit Commission (AC) on September 2006. This meant
that an additional funding of £8.4m, which is attached to this status, could have been drawn down within this
financial year.
b) Alternative Housing Capital Programme (without 2 star ALMO Funding) assumed that two-star status may
not be achieved in 2006/07.
2
  Capital Receipt Pooling System is the funding mechanism behind the national housing regeneration
programmes such as Housing Pathfinder and Green Corridors.
                Repairs Fund. Therefore, available resources under the Housing Capital
                Programme for 2006/07 were re-profiled accordingly.

    15. Currently, reports looking into funding packages to accommodate these projected
        increases in expenditure are being written for consideration by the Strategic
        Director of Development. The funding options for the Kingsway Estates project are
        being presented to the Cabinet for approval as a part of the Financial Management
        Report (Revenue). Results will be reported back to the Cabinet in the next quarterly
        update report.

    16. Special Education Needs (SEN) and Building Schools for Future (BSF)
        programmes have been through a project review process following their transfer to
        3D. As a part of this review, the funding requirement for project development stage
        in 2006/07 was also assessed for both programmes. £3.2m (SEN) and £0.4m
        (BSF) were re-profiled to future years.

    17. Explanations for other major amendments (over £500K) and details of individual
        scheme variances of more than £100K are also provided in the relevant appendices
        (1 to 6). Other minor details are available to Members if required.3

    18. The overall strategic approach to programme management ensures that
           a) the current year expenditure can be met by resources available to the
              Council in 2006/07.
           b) sufficient funding cover will be available to meet capital commitments into the
              years following 2006/07.


Monitoring Results for the Capital Programme 2006/07
    19. Table 2 in Appendix 7 shows a summary of the Council‟s Capital Programme for the
        2006/07 financial year. Overall, the capital outturn for 2006/07 is now projected to
        be £112.1m. The projected capital resources total as of 30th June 2006 is £108.9m.
        This reflects a new over-programming total of £3.2m, which is being closely
        monitored and managed.

    20. The monitoring results for sources of funding are explained below:

            a) Supported Capital Expenditure4- These resources have reduced significantly
               since the budget setting report was approved on the 9 th March 2006. This
               reflects the ALMO inspection being deferred until March 2007, and as a
               result no additional resources will be available in 2006/07. These changes
               are further explained in paragraph 11.

            b) Grants - The total forecasted grants for 2006/07 amounts to £17.4m. £7.6m
               of this sum is in support of the Housing Capital Programme (HCP) and
               £6.4m is in support of Corporate Capital Programme (CCP). The revised

3
  Note that the council is not losing resources due to this delayed expenditure since capital programmes are
managed in a way which support any scheme delays by maximising resources that can be carried forward
into future years.
4
  SCE (R): This is the government approved borrowing.
  SCE (C): This is the Central Government capital grant allocation.
                forecast has fallen by approximately £6.2m compared to the original estimate
                (see paragraph 12).

            c) External Contributions- The total forecasted external contribution for 2006/07
               is £19.5m. £17.3m of this sum relates to funding from Yorkshire forward and
               Objective 1 in relation to the TPIP.5 To date, funding of £9.6m is in place
               with the remainder (£9.9m) awaiting final approval.

            d) Capital Receipts- the Council originally planned to generate £20.8m capital
               receipts in 2006/07. The result of the first monitoring shows that the Council
               is expecting up to £24.7m from asset sales. These receipts are ring-fenced
               to fund Housing (£6.4m), the CCP (£2.5m per annum) and the TPIP
               (£15.8m) as per Council‟s current capital strategy and financial policy. This
               area of funding contains the largest risk for programme financial
               management because market conditions are uncertain and the disposal
               process is complicated and time-intensive. Therefore, capital receipts are
               difficult to predict. They are closely monitored and assessments made on the
               likelihood of the receipt being achieved in the required year.

            e) Prudential Borrowing- the Council originally planned to use £7m prudential
               borrowing in 2006/07. The updated programme, following the completion of
               the first monitoring, shows that the borrowing requirement has been reduced
               to £5.9m in 2006/07 and it is planned that the balance of £5.5m will be used
               in 2007/08. As the prudential borrowing is a flexible resource for the capital
               financing strategy, the requirement for 2006/07 can be changed later in the
               year depending on the realisation of other resources, such as the capital
               receipts, external funding and grants, during the year.

            f) Earmarked Reserves and Capital Receipts brought forward- In the original
               estimate it was planned that approximately £7m in earmarked reserves
               would be carried forward to support the TPIP and Corporate Capital
               Programme (CCP). Earmarked reserves now show a balance of £1.1m
               When added to the capital receipts carried forward total of £8.3m it gives
               total resources of £9.4m.6

    21. The effective and timely delivery of the disposal programme is still the key to
        successful delivery of capital programmes. This will be the subject of a separate
        report to the Cabinet on 4th October 2006.

    22. Provision has already been made in the revenue budget for the interest with
        regards to borrowing requirements for the Capital Programmes 2006/07 and
        beyond.



5
  Note that the procedure to secure the funding from Yorkshire Forward and Objective 1 involves a number
of stages and can take many months to secure. The expenditure relating to this funding will be closely
monitored and only incurred once funding is secured.
6
  The difference (£2.4m) between the original and revised estimates reflects the outturn position. Additional
capital receipts and earmarked reserves of £1.3m and £0.2m respectively were carried forward to 2006/07.
In addition, £0.9m earmarked reserves were subsequently approved to support the IT element within the
CCP.
Education Capital Programme (ECP)

    23. Overall, the Education Capital Programme (ECP) has progressed as planned
        between 1st April 2006 and 30th June 2006. During Q1, the ECP incurred £3.2m
        expenditure of which £0.827m and £0.877m were on Hatfield Visual Art College
        and the Sure Starts/ Children Centres programmes respectively.

    24. There has also been a reduction in the size of the 2006/07 programme from £18.2m
        to £12.3m. The main reasons for this reduction are
            a) slippages in the expenditure profiles (paragraph 16)
            b) the devolving of the Structural Maintenance Secondary Schools Allocation (-
               £428K) to schools
            c) Reduction in expected level of external funding provision (paragraph 13)

    25. Projected overprogramming for the ECP is now £350K. This is related to the
        projected overspend in Sure Starts/ Children Centres programmes. Currently,
        interim measures are in place to limit the projected overspend and to recover
        2005/06 funding from the GOYH. Following the response from the GOYH, a report
        looking at the options to fund the overspend total will be considered by the Strategic
        Director of Development.

    26. Key ECP achievements for the same period are summarised in the table below:



EDUCATION CAPITAL PROGRAMME- 2006/07 PROGRESS TABLE: UPDATE 1

Project / Block        Quarterly Key Achievements            Implications for 2006/07 Programme
Name                                                         Delivery/ Impact on Service Provision
Hatfield Visual Arts   Construction completed, some six      The development provides Art Studios,
College                weeks ahead of schedule, handover     Lecture Theatre, ICT Suite, Maths
                                                 th
                       to the school took place 7 July 06.   Rooms, new main school reception area
                                                             plus ancillary staff and pupil areas.
Armthorpe School-      Construction completed May 06         Provision of a stand-alone „state of the
New technology                                               art‟ technology block.
block
Special Educational    Scheme received approval at the       Development of detailed specifications in
Needs (SEN)            Schools Organisation Committee in     future quarters
                       April 06.



Transport Capital Programme (TCP)

    27. Overall, the Transport Capital Programme (TCP) progressed as planned between
        1st April 2006 and 30th June 2006. However, this progress is not fully reflected in the
        expenditure-to-date total which is only £106K. The main reason for this is the time-
        lag between different work-in-progress systems and the OneWorld. This time-lag
        and its impact on the expenditure totals are closely monitored as a part of the
        monitoring process.
    28. Key TCP achievements for the same period are summarised in the table below:


TRANSPORT CAPITAL PROGRAMME- 2006/07 PROGRESS TABLE: UPDATE 1

Project / Block       Quarterly Key Achievements               Implications for 2006/07 Programme
Name                                                           Delivery/ Impact on Service Provision
Programme Funding     Additional 900K secured from Obj1        Additional funding for the delivery of the
                      for South Yorkshire Intelligent          exiting transport programme portfolio
                      Transport System
Highways              14 out of 18 projects commenced          Completion of the whole Highway
Maintenance           design or construction                   Maintenance Programme March 07

Bridge                Completion of one Network Rail           Avoid/ remove weight restrictions and
Strengthening and     Bridge Scheme and Retaining Wall         public safety hazards
maintenance Block     Parapet Maintenance



Housing Capital Programme (HCP)

    29. Overall, the Housing Capital Programme (HCP) has progressed more slowly than
        anticipated between 1st April 2006 and 30th June 2006. There has been a significant
        reduction in the size of the 2006/07 programme from £51.2m to £30.5m.

    30. The main reasons for this reduction are listed below:
           a) The adoption of the alternative HCP (without ALMO 2 starts)
           b) Reduction in expected level of grant and external funding provisions
           c) Accommodation of accelerated expenditure in the 2005/06 outturn
        (see also paragraphs 11 to 14)

    31. Projected overprogramming for the HCP is now £1.9m. This is due to the projected
        overspend (£2.5m) in Six Streets Project as a result of continuing high take-up in
        acquisitions of the housing stock. The size of the private sector housing block for
        2006/06 has already been reduced by approximately £0.7m as an interim measure
        in order to accommodate some of this projected overspend.

    32. Similarly, the Kingsway Estates Project requires additional £0.75m in 2006/07 and
       an additional £1m in 2007/08 to buy out or re-house residents and to initiate the
       demolition work. This is due to the timing of funding from the Regional Housing
       Board, the bulk of which will not be received until 2008/09. The funding options for
       this project are being presented to the Cabinet for approval as a part of the
       Financial Management Report (Revenue). 7

    33. Key HCP achievements for the same period are summarised in the table below:




7
 Currently, this possible requirement is not reflected in the projected HCP expenditure total as an interim
measure in order to ensure that the over-programming total for the HCP is at a manageable level and in line
with the Audit Commission‟s recommendations.
HOUSING CAPITAL PROGRAMME- 2006/07 PROGRESS TABLE: UPDATE 1

Project / Block          Quarterly Key Achievements                      Implications for 2006/07 Programme
Name                                                                     Delivery/ Impact on Service Provision
Doncaster Decent          Works completed during Q1 on                   A total of 517 properties to be brought
Homes                    Thorne, Stainforth, Mexborough and              to Doncaster Decent Homes standard.
Programme                Conisbrough schemes.                             Programme completion date for
                          Works commenced on site in                    Rossington is December 2006.
                         Hexthorpe and Rossington.
Pathfinder                                                                Decanting procedures for Granby and
Programme                Feasibility Works Finalised                     Kirby Street to start Aug 06.
Granby Phase 1                                                            Developer for Hesley Court to be
and 2, Hesley Court,                                                     appointed Sep 06.
Strafforth House,                                                         Demolition to Strafforth House to
Kirby Street                                                             begin Sep 06

Staveley /Victoria       Initial Designs Prepared for                     Community consultation on designs to
Street,                  Community Consultation                          be finalised by September
Bramley Court,
York/Oliver Street


Transformational Projects Investment Programme (TPIP)

    34. Overall, the TPIP has progressed as planned between 1 st April 2006 and 30th June
        2006. During Q1, the programme incurred £7.6m expenditure [e.g. Lakeside Sports
        Complex (£5m), Waterfront (£1.4m)].

    35. There has been an increase in the size of the 2006/07 programme from £44m to
        £49.4m. The main reason for this increase is the slippage from 2005/06 in the YF
        allocation for the acquisition of the Waterdale site to facilitate the Civic and Cultural
        Quarter. The acquisition is due to take place in Sep 06 and will be fully-funded by
        the YF contribution to the scheme.

    36. Overall size of the programme across the next 3 years was also provisionally
       increased by £90.8m to accommodate the change in the Finningley project
       expenditure profile. This change is due to the project securing stage 2 approval
       from YF (£20.2m) and provisional approval from Department for Transport (£47m)
       and the inclusion of the expected private sector contribution (£23m) to the
       expenditure profile.

    37. Key TPIP achievements for the same period are summarised in the table below:

Project /                                                                         Implications for 2006/07
Block         Quarterly Key Achievements                                          Programme Delivery/ Impact
Name                                                                              on Service Provision
Waterfront              £1.3M Obj 1 Funding secured for Public Realm-             Programmed completion date for
                         June 06                                                  Public Realm July 06
                        Stage 3 applications to YF for Engineering Works         Creation of mixed-used Waterfront
                         and Strategic Acquisitions submitted- May 06             Area and provision of high quality
                        Tenders for Engineering Works issued- June 06            residential, commercial, retail space
                        57% of the total Waterfront acquisitions completed-
                         June 06
Lakeside                Tenders for fit out of the Complex initiated- April 06    Programmed physical completion
Sports                  Internal design changes agreed to increase earning       date- Dec 06
Complex                  revenue- June 06                                          Enhancing Borough‟s sporting and
Project /                                                                   Implications for 2006/07
Block         Quarterly Key Achievements                                    Programme Delivery/ Impact
Name                                                                        on Service Provision
                     Jobs for Stadium Management Company                   recreational facilities with variety of
                      advertised- June 06                                   leisure and educational amenities
Civic and            Competitive Dialog completed- April 06                 Programmed return date for
Cultural             Invitation to tender and draft development            tenders- Aug 06
Quarters              agreement issued- May 06                               Redevelopment of the Waterdale
                                                                            and provision of new civic buildings
                                                                            (NPV, offices, library, swimming pool)

Town Moor            Grand stand and conference& exhibition centre          Programmed start on site July-06
                      demolished- May 06                                     Creation of economic benefits in
                                                                            tourism and hospitality sector via re-
                                                                            development of Racecourse,
                                                                            conference and exhibition centre
Lakeside             Detailed designs for Bawtry Road/ Gliwice Way          Programmed completion date for
                      Junction improvements initiated and £450K             junction improvements- March 07
                      additional funding secured - May 06                    Programmed completion date for
                     Additional £300K secured for the delivery of Middle   Middlebank/ Stadium Way Nov 06
                      Bank/ Stadium Way- May 06
E-                   ICT- Infrastructure improvement programme              Programme completion date April
Government            initiated- June 06                                    07
                                                                            Provision of enhanced, scalable
                                                                            and robust ICT infrastructure to
                                                                            support delivering services in line
                                                                            with the Neighbourhood Model
Urban&               Development of St Sepulchre Gate West                  Development of the preferred
Rural                 Regeneration Area included in the Area Action Plan    option for the Area March 07
Renaissance           and LDP

Corporate Capital Programme (CCP)

    38. Overall, the Corporate Capital Programme (CCP) has progressed as planned
        between 1st April 2006 and 30th June 2006. During Q1, the programme incurred
        £1.4m expenditure of which £0.71m was spent on Cusworth Hall and Park
        Renovation Project.

    39. There has also been an increase in the size of the 2006/07 programme from
        £12.5m to £14.1m. The main reasons for this increase are the securing of
        additional funding for Gas Contaminated Land-Bawtry (£1.2m) and Balby Woodfield
        Phase 6&7 (£0.68m), and the approval of additional earmarked reserves (£0.9m) to
        support IT Networks and Infrastructure (see Appendix 6).

    40. Projected overprogramming for the CCP is now £1.1M (8%) which is still within
        tolerances set by the Audit Commission and closely monitored.

    41. The DDA Statutory Provisions (Phase 1) Project also requires additional £0.2m in
        2006/07 in order to initiate DDA works in the Armthorpe Sports Centre. The funding
        options for this project will be presented to the Strategic Director of Development for
        approval.8

    42. Key CCP achievements for the same period are summarised in the table below:



8
 Currently, this possible requirement is not reflected in the projected CCP expenditure total as an interim
measure in order to ensure that the over-programming total for the CCP is at a manageable level and in line
with the Audit Commission‟s recommendations.
Project / Block        Quarterly Key Achievements               Implications for 2006/07 Programme
Name                                                            Delivery/ Impact on Service Provision
Bentley Pavilion       Completion of the centre                 Improvement of the long-term future of
Training centre        refurbishment and roof repairs           the building and creation of a training
                                                                facility

Southern Bus            Vacant offices boarded up and           Conversion of the ground floor into a
Station- Car Park      construction work commenced at the       secure pay& display car park with
                       beginning of June 06.                    provision for coach parking
                                                                Reduction of anti-social behaviour in
                                                                the former bus station
Hedgerow Planting      The Hedgerow planting scheme, part       25,695 plants were procured which
Scheme                 of the Liveability woodland and nature   equates to 7504 meters of new
                       conservation scheme, completed           hedgerow, which will help biodiversity
                       June 06.                                 and nature conservation in Doncaster.

Options Considered & Reasons for Recommended Option

    43. Financial Procedure Rules require the Strategic Director for Development to monitor
        the capital expenditure against budgets and report quarterly to the Cabinet on
        capital programmes‟ progress and the latest forecasted budget position. This report
        is designed to meet these requirements.

Impact on Transformational Goals

    44. The Capital Programme for 2006/07 to 2008/09 contains projects that will have a
        direct impact on the achievement of the transformational goals. A further strategic
        link was established with corporate plan priorities when the Cabinet and the
        Executive Board agreed on new inclusions to the programme through the budget
        setting consultation process.

Risks & Assumptions

    45. Key risks in delivering the capital programme are as follows:

CAPITAL PROGRAMMES RISK TABLE- 2006/07

Risk                             Probability   Impact    Mitigation
Asset sales which are planned    Medium        High       Close monitoring by the current programme
and assumed as a key funding                             monitoring and Capital and Asset Steering
source are not achieved                                  groups
                                                          A separate report on the Accelerated
                                                         Disposal Programme to be taken to the
                                                                       th
                                                         Cabinet on 4 Oct 06
External funding contributions   Medium        High       Close monitoring by the current programme
which are planned and                                    monitoring and Capital and Asset Steering
assumed as key funding                                   groups
sources are not achieved                                  Expenditure related to these resources will
                                                         only be incurred once the funding is secured
Estimated cost of some capital   High          High       Regular programme update reports will
projects may change                                      submit significant changes to capital budgets
significantly as delivery
mechanisms are finalised
CAPITAL PROGRAMMES RISK TABLE- 2006/07

Risk                              Probability   Impact   Mitigation
Acceleration in in-year project   Medium        High      Interim measures are in-place for projected
                        th
overspends (such as 6                                    overspend positions within capital programmes
Streets, Kingsway, Sure                                   Separate reports are underway to be
Starts)                                                  considered by the Strategic Director for
                                                         Development and the Cabinet
Mexborough & Edlington PFI        Medium to     High     The Director of Finance is in the process of
Scheme- affordability gap not     High                   identifying funding to bridge the affordability
able to be funded from                                   gap. This includes agreeing a contribution to
revenue resources                                        funding from schools with the Secondary
                                                         School heads for which a decision is due to be
                                                                        th
                                                         made on the 4 October, 2006 at the Schools
                                                         Forum. In addition it is intended to make a
                                                         contribution form the Councils General Fund.

    46. The enhanced monitoring and management of capital programmes, led by the
        Strategic Director of Development should minimise these risks. Regular reporting to
        Members in following months will include reference as to how these risks are being
        managed.

Consultation

    47. This report is a joint report of the Strategic Asset Management and Corporate
        Financial Management teams. Consultation has taken place with the key project
        managers and their financial support in order to provide Members with the most up
        to date and comprehensive position on the capital programme.

    48. The Capital and Asset Steering Group and the Corporate Management Team also
       considered the report on 21st August 2006 and 22nd August 2006 respectively.

Legal Implications

    49. There are no legal implications of this report.

Financial Implications

    50. Financial implications are contained in the body of the report

Other Implications
   51. None

Conclusion

    52. Overall, capital programmes progressed well between 1 st April 2006 and 30th June
        2006. The capital outturn for 2006/07 is now projected to be £112.1m. This reflects
        a new overprogramming total of £3.2m (2.9%) which is being closely monitored.
        The effective and timely delivery of the disposal programme is critical for the
        successful delivery of capital programmes. The capital programmes are managed
        to ensure that the current year expenditure is met by resources available in 2006/07
        and that sufficient funding cover is available to meet commitments into subsequent
        years.
Contact Officers

Alistair Burg; Corporate Director of Strategic Asset Management; Tel: 735561
Email: Alistair.burg@doncaster.gov.uk

Julie Wright; Corporate Director Financial Services; Tel: 737650
e-mail: Julie.Wright@doncaster.gov.uk

Report Authors

Alistair Burg; Corporate Director of Strategic Asset Management; Tel: 735561
Email: Alistair.burg@doncaster.gov.uk

Julie Wright; Corporate Director Financial Services; Tel: 737650
e-mail: Julie.Wright@doncaster.gov.uk

Background Papers

1.    Cabinet Report (08.03.2006): Capital Programme-2006/07 to 2008/09
2.    Cabinet Report (08.03.2006): Capital Programmes Monitoring 2005/06
3.    Cabinet Report (12.07.2006): Capital Programme- 2005/06 Outturn



                                       Peter Dale
                           Strategic Director of Development
APPENDIX 6

MAJOR AMENDMENTS TO THE CAPITAL PROGRAMME 2006/07

Table 1: Major Amendments to the Capital Programme 2006/07
PROGRAMME       PROJECT                 AMOUNT    EXPLANATION

Reduction in the 2006/07 Expenditure Profile

HCP             Priority Estates        - £3.4m   As per paragraph 12
                (Pathfinder)
HCP             Decency Env.            -£500K    As per paragraph 14 (b)
                Fencing& Boundary
                Walls
HCP             Kingsway Estate         -£854K    As per paragraph 13

HCP             Green Corridor          -£760K    As per paragraph 12
                (Woodlands)
ECP             Special Education       - £3.2m   As per paragraph 16
                Needs
TPIP            Waterfront              -£2.4K    Change in the project funding package- expected
                                                  private sector contribution in 2006/07 replaced with
                                                  additional public funding in 2007/08 and 2008/09

CCP             BME Community           -£537K    Slippage to 2007/08 due ongoing consultation with
                Centres                           end-users and relevant stakeholders

CCP             Mansion House           -£504K    Change in profile due to ongoing external grant
                Underpinning Works                application and approval process and its impact on
                                                  project scope and delivery

CCP             Children‟s play areas   -£519K    Change in the profile due to delays in project
                                                  development in later schemes

Increase in the 2006/07 Expenditure Profile

TPIP            CCQ                     £5.4m     Brought forward from 2005/06 due to delays in the
                                                  approval of YF application for the College site
                                                  acquisition.
TPIP            Lakeside Sports         £643K     Brought forward from 2005/06 due to significant
                Complex                           value engineering works and major re-design
                                                  process
TPIP            Finningley              £600K     Due to securing Stage 2 approval from YF

ECP             Armthorpe               £524K     Brought forward from 2005/06 due to final invoice
                Comprehensive                     coming later than expected

ECP             Sure Start/ Children    £903K     Brought forward from 2005/06 due to delays in
                Centres Programme                 practical completion dates

CCP             Town Moor-              £520K     Due to the utilisation of S106 and acceleration in
                Liveability                       project development

CCP             IT Networks and         £1.1m     Due to additional external grant and the use of
                Infrastructure                    corporate IT earmarked reserves

New Additions
Table 1: Major Amendments to the Capital Programme 2006/07
PROGRAMME    PROJECT              AMOUNT   EXPLANATION

CCP          Balby Woodfield      £680K    New inclusion as per ODR dated May 05 and fully
             Plantation Tranche            funded by S106, providing new pathways and
                                           environmental enhancement in the area

CCP          Bawtry- Gas          £1.3m    New inclusion as per securing grant from DEFRA
             Contamination                 approved July 06, for the removal of coal tar
                                           contamination

Other Adjustments

ECP          Woodfield Primary    -£3.5m   Deletion due to no progress in application to
                                           external funding

TPIP         Town Moor            -£753K   Deletion as OBJ 1 contribution to be paid directly
                                           into the developer‟s account

Total                             -£5.3M
APPENDIX 7

SUMMARY MONITORING STATEMENT- CAPITAL PROGRAMME
2006/07: April 2006 to June 2006

Table 2- Summary Monitoring Statement

Programme                            Notes     Original     Revised      Actual      Variance to
                                               budget       Projection   Spend to    original
                                                                                th
                                               2006/07      2006/07      the 30      projection
                                                                         June
                                                                         2006
                                                    £000s        £000s      £000s         £000s
Capital Budget
Education                            Note 1        18,166       12,332      3,169         -5,834
Transport                            Note 2         5,968        5,806        106           -162
Housing (Excluding ALMO funding)                   42,738       30,495      6,664        -12,243
Housing ( ALMO additional            Para 11        8,833            0          0         -8,833
Funding)
T.P.I.P.                             Note 2        44,313       49,398      7,611          5,085
Corporate                            Note 1        12,465       14,102      1,365          1,637
TOTAL SPEND                                       132,483      112,133     18,915        -20,350

Sources of Funding                   Para 20
Supported Capital Expenditure (R)    (a)           31,211       12,273
Supported Capital Expenditure (C )   (a)            7,994        7,845
Grants                               (b)           23,636       17,403
External Contributions               (c)           17,791       19,526
Revenue Contributions                               1,528        1,128
Useable Capital receipts             (d)           20,775       24,683
Prudential Borrowing                 (e)            7,000        5,917
Earmarked Reserves / Useable          (f)           7,053        9,468
Capital Receipts Brought Forward
Major Repairs Allowance              Para 14       12,547       10,686

Total                                             129,535      108,929

Over (+) or Under (-)                               2,948        3,204
Programming

Notes:

1- The difference in the current original size (£18.2m) of the ECP compared to that reported in the
Budget Setting Report (£17.8m) in March 2006 is due to the fact that the Sure Start/ Children
Centres programmes have been transferred to the ECP from the Corporate Capital Programme.
This is because these investment programmes are closely strategically linked to the extended
schools agenda and schools‟ proposed role in the community in the 21st century. As a result the
current original size (£12.5m) of the CCP has been amended by the same amount and is different
to that reported in the Budget Setting Report (£12.8m) in March 2006.

2- The size of the TCP has been amended to reflect the fact that £300K of the total LTP allocation
for 2006/07 is being spent on transport projects which are match-funded by the TPIP. Therefore,
the overall original programme total has been adjusted to £5.8m. As a result the current original
size (£44.3m) of the TPIP has been amended by the same amount and is different that reported in
the Budget Setting Report (£44m) in March 2006.

				
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