Docstoc

Report of Chief Executive Officer

Document Sample
Report of Chief Executive Officer Powered By Docstoc
					                                                          MANSFIELD DISTRICT COUNCIL




               Report of the Head of Finance and Revenue Services
                                        to
                Deputy Mayor and Portfolio Holder for Resources
                                       For a
                               Delegated Decision
                                        On
                                22 February 2010


      CAPITAL PROGRESS REPORT AND PRUDENTIAL INDICATORS TO 31
                          DECEMBER 2009


1.     SUMMARY

1.1    This report summarises the progress made on capital schemes up to the end
       of December 2009 and performance against prudential indicators.

1.2    This report is included on the Forward Plan for submission to Council and is a
       key decision.


2.     RECOMMENDATIONS

Recommendation to Council

       (i)     That budgets totalling £3,909,000 be carried forward into 2010/2011.
       (ii)    That the Capital Programme for 2009/2010 be reduced by £113,000
               (see appendix 1C).
       (iii)   That the Capital Programme for 2009/2010 be increased by £148,000
               for the Waste Capital Infrastructure Grant.


3.     BACKGROUND

3.1    Capital Progress

3.1.1 The figures quoted in this report represent that element of capital expenditure
      that needs to be financed for the 2009/2010 financial year, using Major
      Repairs Allowance, capital receipts, contributions from reserves, grants and
      contributions.

3.1.2 At the end of December 2009, expenditure (including commitments) of £12.6
      million was incurred against the total budget for the year of £21.5million.
      Project Officers have indicated that a further £5.1million will be spent before
      the end of the 2009/2010 financial year. Project Officers are requesting a
      carry forward of £3.9 million into 2010/2011. This will result in the total
      projected spend for 2009/2010 being £17.7 million. Appendix 1A provides
      further information regarding these figures.
                                                          MANSFIELD DISTRICT COUNCIL




3.1.3 Appendix 3 gives details on the capital schemes requesting carry forwards on
      this financial year’s budget into 2010/2011. Explanations have been provided
      from the project officers on the reasons for the carry forwards.

3.1.4 Below are brief descriptions and an update on progress so far on a number of
      the capital schemes for 2009/2010.

3.2   Liveability

3.2.1 As stated in previous out-turn reports the Liveability scheme is now completed
      and all retentions have been paid. There is nothing outstanding on this
      scheme and the balance is to be vired toward the financing of the Town Hall
      toilets.

3.3   Town Centre, Reception and Contact Centre

3.3.1 As reported in the last quarterly outturn report all tenders have been received
      have now been reviewed and the preferred supplier has been identified for the
      purchase of the customer relationship management (CRM) system. No
      progress has been made since the last quarterly report due to the revenue
      implications related to this scheme which needed to be financed before this
      could progress any further. Revenue service developments put forward for
      consideration for inclusion in the 2010/2011 budget for the maintenance and
      support of the CRM system and to appoint a systems administrator. At
      Council on 28 January 2010 the above service developments were approved
      as part of the General Fund Revenue Budget 2010/2011 to 2013/2014.

3.3.2 Provision of public conveniences – This scheme is to provide a new provision
      of public conveniences, the location of which will be in the Old Town Hall
      Block. The designs for the new convenience provision have been prepared
      and planning permission is to be sought, the tenders are out and are due
      back in by late February 2010. The main work is to be undertaken in
      2010/2011. Costs incurred in this financial year will be internal fees only.

3.3.3 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.

3.3.4 The refurbishment of the bus station public convenience has now all been
      completed.

3.4   Regeneration and Neighbourhood Management

3.4.1 Re-development of the site of the Queen’s Head – This scheme has not
      progressed since the last quarterly report pending the outcome of the
      accommodation strategy. Oakleaf Consultancy has undertaken the feasibility
      study and the report has been received and the recommendations of this
      report have been considered. A report is to be submitted by the Director of
      Housing, Property and Operational Services.
                                                            MANSFIELD DISTRICT COUNCIL



3.4.2 Crown Farm Industrial Park (Public Realm) – this scheme is to improve the
      gateways to Crown Farm Industrial Park and includes environmental works to
      improve the park signage by replacing or renovating existing signage at the
      various entrances. This scheme will provide clearer signage for existing
      customers and potential clients to the Crown Farm Industrial Park. Planning
      permission for the changes to the signage advertisement has been requested
      and this has been approved. The works have started on site.

3.4.3 Acquisition of land and buildings off Belverdere Street for strategic car parking
      scheme – the land has now been acquired. There is a request for a carry
      forward as the demolition and preparation of the car park will not take place
      until the next financial year.

3.4.4 Demolition of the indoor market and reuse of a temporary car park – the
      demolition of the indoor market has taken place and the surface prepared for
      use as a temporary car park. The car park came into operational use in
      November 2009.

3.4.5 One Building purchase and demolition – the One Building has been
      purchased and the demolition of this building has taken place. The surface is
      now being prepared for use as a car park. The car park order to operate a
      parking area from this land has been secured.

3.4.6 William Kaye Hall – this scheme is to refurbish the William Kaye Hall to create
      a community / business centre. As previously reported Council approval was
      gained for up to £166,104 and was to be fully funded. This scheme has been
      completed; however their approved expenditure has been exceeded. In line
      with Financial Regulations 7.12.14 a report setting out the circumstance of the
      overspend and recommended remedial action is being prepared for the
      Executive consideration.

3.4.7 The Mansfield Visitor Interchange – this scheme is being led by
      Nottinghamshire County Council with Mansfield District Council as the main
      partner. The Council has completed its part of the works on the site. The only
      element left from the Council is the contribution of £250,000 for the remainder
      of the scheme. However funding identified for this project originally included a
      contribution that was not set aside. A separate report by the Portfolio Holder
      for Regeneration as a delegated decision is being taken on 15 February 2010
      on the management and funding arrangements for the Interchange.

3.4.8 Mansfield Townscape Heritage Initiative scheme is almost completed. The
      budget left is for grant funding that has been earmarked for future of works on
      the Maltings.


3.5   Leisure and Cultural Services

3.5.1 The Rebecca Adlington Swimming Centre – The construction of the swimming
      centre is now completed and the centre is now in operational. The official
                                                           MANSFIELD DISTRICT COUNCIL



      opening day of the Rebecca Adlington Swimming Centre is on the 18
      February 2010.

3.5.2 The remaining schemes under leisure and cultural services are Section 106
      capital schemes; these are where developers have made contributions in light
      of developments they have undertaken.

3.5.3 The process for Section 106 projects is that once the contribution is received
      consultation takes place with the residents in the area to establish what they
      would like/require in the area; this can sometimes be a lengthy process. A
      number of the Section 106 schemes are time limited this is usually five years
      from the date that the contribution is received. Due to the length of time for
      consultation, it is difficult to know when the scheme will start. This report is
      requesting the following schemes to be carried forward which have not started
      yet, Water Lane, Skegby Lane, Market Street and Toothill Lane.

3.6   Resources

3.6.1 There have been six vehicles, three trailers, three mowers, one mower part to
      add to a tractor and three tractors purchased to the 31 December 2009 as
      part of the fleet budget of £492,000 this financial year.

3.6.2 Cemeteries upgrade work; this is for upgrading work at Mansfield
      Woodhouse, Warsop and Pleasley. This was a phased scheme with one
      cemetery being working upon each year in the order above. Work is
      completed at Mansfield Woodhouse. The majority of the work is completed at
      the Warsop cemetery with the paving and car park project completed. The
      work outstanding is for repairs to the gates, this has been requested to be
      carried forward into 2010/2011. The work on the Pleasley cemetery is to
      commence in 2010/2011 and this has also be requested to be carried forward.

3.6.3 Schedules and drawings have been produced for the work to be carried out
      on the Mansfield cemetery which is held in a separate budget from the other
      cemeteries and was gained from the receipts of the sale of the Bottom and
      Top Lodge at the Mansfield Cemetery. Planning and listed building
      applications are being prepared and due to the timescales involved in this
      there is a request to carry forward this budget forward into 2010/2011.


3.7   Urban Housing Regeneration

3.7.1 The 2009/2010 urban housing regeneration programme is split into two main
      parts being regeneration schemes and individual financial assistance
      schemes.

3.7.2 In addition the regeneration schemes are tackling poor housing conditions
      and provide an uplift to the neighbourhood. The current areas of regeneration
      in the district are Mansfield Woodhouse, Mansfield (Newgate Lane area),
      Warsop Vale and Pleasley Hill.
                                                              MANSFIELD DISTRICT COUNCIL



3.7.3 Newgate Lane – In the last quarterly report fourteen properties were being
      targeted for this financial year on Bentinck Street, Birkland Street and King
      Street. This has now been reduced to twelve as two of the owner’s do not
      want to join the scheme. The progress to the 31 December 2009 is as follows,
      three properties are completed (two on Bentinck Street and one on Birkland
      Street. Grant has been approved but work not started on eight properties on
      King Street. One property on King Street is awaiting the grant approval from
      the Council.

3.7.4 Mansfield Woodhouse – This year’s budget is to target eighteen properties on
      Vallence Street however four owner have declined to join the scheme. Of
      these nine properties have been completed (including external works /
      improvements). Contactors are on site with a further five properties.

3.7.5 Warsop Vale – Work has been completed on all 23 properties and the
      payment of grants are being processed.

3.7.6 Pleasley Hill – Meden Valley Making Places Limited have been appointed to
      work for the Council to deliver this scheme. This capital budget is set aside for
      acquisitions of properties. The development of the acquisition strategy is
      being undertaken.

3.7.7 There are a number of individual financial assistance schemes, these assist
      vulnerable households in the following ways:

             Decent Homes grants
             Home repairs assistance
             Affordable warmth
             Handyperson scheme
             Disabled Facilities Grants

3.7.8 Decent Homes grants – this is a scheme that provides financial assistance
      made available to make homes of vulnerable owner-occupiers decent. This
      year’s budget was previously estimated to be for between eight to nine
      properties this is now expected to be for ten properties. To date six properties
      have been completed, one grant is on-going and three grants are waiting for
      approval.

3.7.9 Home repairs assistance – this scheme is available for smaller scale works to
      non- decent homes and is estimated to target 100 grants this financial year.
      Currently 47 grants have been completed, with 21 on going and 11 awaiting
      approval.

3.7.10 Affordable warmth – this scheme is split into two parts, insulation schemes
       and warm front top-up grants. The insulation schemes are where the Council
       works in partnership with Crestra Limited to provide subsidised financial
       assistance for loft and cavity wall insulation. The Council has been able to
       financially assist 72 properties with either loft or cavity insulation or both. The
       warm front top-up grant supplement is to top up households that have
       received a grant from the government for insulation and heating
                                                             MANSFIELD DISTRICT COUNCIL



       improvements, this year the target is 34 grants. So far eight grants have been
       approved.

3.7.11 Handyperson scheme – this scheme is to provide minor works of repair or
       improvement and is to assist vulnerable older households to prevent negative
       impacts upon health, safety and wellbeing. Nottinghamshire County Council
       are now delivering this service and Mansfield District Council will be providing
       the funding for this as Nottinghamshire County Council join the Handyperson
       and Preventative Adaptations Scheme.

3.7.12 Disabled Facilities Grant – is provided to adapt the home of a disabled
       occupant so that it meets their needs. It can include adaptations such as for
       example the provision of a stair lift and the removal of a bath and its
       replacement with a level access shower. This year’s budget is estimated to
       undertake approximately 68 grants based on an average cost, this may vary
       depending on the nature of the work required. There have been 43 completed
       grants to the 31 December 2009. Eleven grants are currently are on-going for
       disabled facilities and fourteen grants have been issued and are waiting to be
       approved.

3.7.13 On 22 December 2009 Council approved the contribution of £40,000 from the
       Private Sector Housing Capital Programme towards the development of the
       direct access hostel on Sherwood Street, Mansfield. This is the follow up from
       the Council approval of the Private Sector Housing Capital Programme
       2009/2010 and Renewal Strategy 2009/2011 on 23 June 2009 which asked
       for this separate recommendation to Council at a later date.

3.8    Waste and Recycling

3.8.1 As previously reported the final order of the 12 mini recycling centres has
      been received and are still awaiting installation. There is a request to carry
      forward this budget into 2010/2011.

3.8.2 The waste transfer station scheme is now completed, this scheme had a
      virement from the Hermitage Lane depot scheme of £24,850 in 2008/2009 to
      be able to finalise the scheme with the required CCTV coverage of the depot
      to meet legislative requirements and to comply with the Environment Agency
      requirements otherwise the operations at the depot would be unable to
      operate cost effectively. This scheme is £14,000 overspent on completion,
      this is to be financed by viring £14,000 from the Mini Recycling Centre
      scheme budget.

3.8.3 From the Local Area Agreement funding (LAA) which the Council receives, an
      allocation for Waste Capital Infrastructure Grant has been gained for
      £148,386. This money has been identified for the introduction of garden
      waste recycling wheelie bins, the introduction of recycling pods to a number of
      flats within the district, the erection of street signs directing residents to our
      recycling facilities and a number of smaller recycling initiatives yet to be
      identified. The delay in introducing these initiatives is mainly due to the need
      to secure revenue funding to service these initiatives or to establish
                                                              MANSFIELD DISTRICT COUNCIL



       alternative methods not requiring a revenue element. There is a request to
       amend the capital programme to include is £148,000.


3.9    HRA

3.9.1 A separate progress report by the Portfolio Holder for Housing deals with the
      Decent Homes element of the capital programme and provides an update
      report to the 31 December 2009.

3.9.2 In September 2009, the Homes and Communities Agency informed the
      Council that they had been successful in their bid for new build local authority
      housing. Approval to amend the capital programme has already been gained
      through the Local Authority Housing – New build report submitted and
      approved by Council on 28 July 2009 to amend the capital programme if the
      bid was accepted. This scheme is to develop up to a maximum of 50 new
      affordable housing units the ownership and management of which will remain
      with the Council on land identified at the Bellamy road estate. This scheme is
      now underway.

3.9.3 On the 8 January 2010, the Homes and Communities Agency informed the
      Council that they had been successful in their bid for new affordable housing.
      Approval to amend the capital programme has already been gained through
      the Local Authority New Build – Second Round Bid report submitted and
      approved by Council 3 November 2009 to amend the capital programme if the
      bid was accepted. This scheme is to develop up to a maximum of seven new
      affordable housing units.

3.10   Prudential Indicators

3.10.1 Appendix 2 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

4.1.1 Members may choose not to approve the amendments to the capital
      programme set out in this report.
                                                               MANSFIELD DISTRICT COUNCIL



5.          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        Finance and revenue
                    and makes assumptions              Services through the Capital
                    regarding the level of             Programme Project Board
                    resources available to             closely monitor the
                    finance the expenditure.           schemes and 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.


6.          ALIGNMENT TO COUNCIL PRIORITIES

6.1         The management of major capital projects is vital in delivering the Council’s
            priorities and directly aligns to the Council’s role as community leaders and
            effective leadership and management.


7.          IMPLICATIONS

      (a)      Relevant Legislation: The Council’s capital programme adheres to the
               following legislation:
                Local Government Act 1972
                Local Government Finance Act 1972
                Local Government Finance Act 1988
                Local Government and Housing Act 1989
                The Local Authorities (Capital Finance and Accounting)(England)
                   Regulations 2003

      (b)      Human Rights: No impact.

      (c)      Equality and Diversity: No impact.

      (d)      Climate change and environmental sustainability: The capital programme
               contains schemes which are designed to reduce the Council’s carbon
               footprint as well as reducing CO2 emissions across the district. The
               proposed amendments will not adversely affect the Council’s impact on
               carbon reduction
                                                            MANSFIELD DISTRICT COUNCIL



      (e)      Crime and Disorder: No impact.

      (f)      Budget / Resources: Resource implications were considered when the
               capital programme was approved. Changes to the original budget are
               assessed and monitored on an on-going basis.



8.          COMMENTS OF STATUTORY OFFICERS

            Head of Paid Service – No comments

            Section 151 Officer – Own report

            Monitoring Officer – No specific comments


9.          CONSULTATION

9.1         The capital programme has been developed through consultation on the
            Council’s priorities as part of the budget planning process.

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


10.         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

                                     2009/2010      Expenditure Forecast for  Forecast
                                      Budget            and     remainder of  balance
                                                   commitments   2009/2010      as at
                                                       to 31                 31/03/2010
                                                     December
                                                      2009
                                           £’000          £’000            £’000           £’000
Liveability                                  29               27               2             29
Town Centre, Reception and
Contact Centre                              404                 0            126            126
Regeneration and
Neighbourhood Management                   2,631             446             334            780
Waste and Recycling                          57               55             148            203
Leisure and Cultural Services              5,709          4,593              423           5,016
Resources                                   869              342              58            400
Urban Housing Regeneration                 3,224          1,720              831           2,551
Completed schemes                            13                 0             13             13
Housing Revenue Account                    8,503          5,422            3,075           8,497
                                          21,439         12,605            5,010          17,615
Estimated admin costs of asset               80               18              62             80
sales
Total expenditure to be                   21,519         12,623            5,072          17,695
financed

*NB the HRA budget is split as follows:

Scheme                                             Amount £’000
Decent Homes                                              8,256
Aids and adaptations carry forward                          -16
Bellamy Road demolition                                      86
Bellamy Road new build                                      161
Laurel Avenue new build                                      10
Total                                                     8,497
                                                        MANSFIELD DISTRICT COUNCIL



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 private developers and Nottinghamshire County Council
elements, these are listed below:

Private developer schemes 2009/2010
Visitor Interchange
White Hart Development
Stockwell Gate
Brownlow Road
Pleasley Hill
                                                MANSFIELD DISTRICT COUNCIL



                                                          APPENDIX 1B
Financing of the Capital Programme 2009/2010


                                                         2009/2010     2009/2010
                                                         Budgeted        Forecast
                                                          financing     financing

                                                              £’000           £’000
Total expenditure is financed by
Revenue contribution from the revenue account                   492             492
Revenue contributions to capital outlay                       2,189           2,189
Planned maintenance                                           1,250           1,250
MRA                                                           3,906           3,906
Prudential Borrowing                                            161               0
Capital Receipts / Reserve
- Housing (Council House Sales)                                 973             997
- Non-housing (other Sales)                                   7,141           5,825
Grants and contributions                                      4,082           2,454
Capital Fund Reserve
- Specific Reserves                                             250             192
- Section 106                                                 1,075             390
                                                             21,519          17,695
                                                         MANSFIELD DISTRICT COUNCIL




                                                                   APPENDIX 1C

Reconciliation of 2009/2010 budget to forecasted spend to 31 March 2010

                                                                                       £’000
2009/2010 budget                                                                      21,519
Direct Access Hostel (approval at Council 22 December 2009)                               40
Laurel Avenue New Build (approval 8 January 2010)                                         10
Waste Capital Infrastructure Grant                                                       148
Removal of :
Section 106 scheme included in the capital programme relating to revenue                -113
Carry forward to 2010/2011                                                            -3,909
Forecasted spend to 31 March 2010                                                     17,695

The following schemes require an amendment to the Capital Programme

                                                                                       £’000
Section 106 schemes included in the capital programme relating to revenue               -113
Approval of the Waste Capital Infrastructure Grant                                       148
Total                                                                                     35
                                                        MANSFIELD DISTRICT COUNCIL




APPENDIX 2

Prudential Indicators to be reported on a quarterly basis.

                                                2009/2010      2009/2010
                                                 Target         Forecast
                                                   £’000          £’000
Capital Expenditure
Non-HRA                                            12,936          9,111
HRA                                                 8,583          8,584

Authorised Limit for external debt
Borrowing                                          83,000         83,000
Other Long term Liabilities                            73             73
                                                   83,073         83,073

Operational Boundary for external debt
Borrowing                                          75,000         75,000
Other long term liabilities                            73             73
                                                   75,073         75,073

				
DOCUMENT INFO