DE
District Executive - 2nd June 2011
9. 2010/2011 Capital Outturn Report
Executive Portfolio Holder: / Tim Carroll, Finance and Spatial PlanningStrategic Director: / Mark Williams, Chief Executive
Assistant Director:
Service Manager: / Donna Parham, Finance and Corporate Services
Amanda Card – Finance Manager
Lead Officer: / Catherine Hood – Corporate Accountant
Contact Details: / or 01935 462542
Purpose of the Report
1. The purpose of this report is to inform Members of the outturn of the capital programme of the Council for 2010/11.
Forward Plan
2. This report appeared on the District Executive Forward Plan with an anticipated Committee date of June 2011.
Public Interest
3. This report advises the outturn of capital expenditure for 2010/11.
Recommendations
4. That the District Executive:-
(a) note the spend of £2,717,730 on capital for the year and approve the financing of the capital programme (paragraphs 7 and 10);
(b) review whether the projects which have a delayed start in excess of one year totalling £458,000 remain in the capital programme (paragraph 15);
(c) note the progress of individual capital schemes (Appendix A);
(d) note the lead officers comments on the progress of each scheme during 2010/11 (Appendix B);
(e) note the evaluation reports on the completed schemes (Appendix C);
(f) approve the revenue contributions to capital and virements of £140,000 as detailed in paragraph 9;
(g) approve the return of the net under spend of £19,000 on completed projects to capital balances (paragraph 18);
(h) note the outstanding balances on loans in paragraph 19.
Background
5. The five-year Capital Programme was approved by Council in February 2010. Monitoring of the agreed programme has been delegated to District Executive.
Capital Programmes
6. The revised capital programme for this financial year and beyond is attached at Appendix A. The spend for 2010/11 has been revised from £4.381 million to £4.538 million for the following reasons:-
£’000 / £’000Approved Capital Programme for 2010/11 at 31st December 2010 / 4,381
Add revenue contribution to Microsoft Enterprise Agreement Project / 60
Add transfers from reserves to area programmes / 7
Add expenditure brought forward from 2011/12 / 93
Subtotal / 160
Less allocations to reserves:
Historic Building Grant to Housing and Planning Delivery Grant Reserve / (3)
Revised Capital Programme for 2010/11 at 31st March 2011 / 4,538
7. The overall position on the Capital Budget for 2010/11 is that total spending amounted to £2,717,730; this was £1,820,670 (40.1%) less than the revised planned expenditure of £4,538,000. The total spend was £4,256,270 (61.0%) less than the original budget of £6,974,000. The overall position is shown in Appendix A. The main reasons for under spends are as follows: -
Scheme / RevisedBudget
£’000 / Actual
Spend
£’000 / Variance
£’000 / Explanation / Project Manager / Project Sponsor
Hardware Replacement Programme / 207 / 62 / 145 / Expenditure on SSDC infrastructure delayed pending decisions on joint working with East Devon District Council and the move from Novell to Microsoft. / R Brown / D Parham
Affordable Housing / 565 / 0 / 565 / Sites still awaiting confirmation of funds from Homes and Communities Agency following the structural and financial changes after the general election / C McDonald / A Foyne
Reckleford Gyratory / 291 / 0 / 291 / Main project completed but due to defects list being incomplete the final payment will be made in the 2011/12 financial year / K Close / H Rutter
Area Committees / 278 / 114 / 164 / Full details in individual area outturn reports / Area Dev. Managers / H Rutter
Birchfield Sewer Pollution Control Works / 254 / 49 / 205 / Major works complete with minor work due for 2011/12. There will be an under spend on this project in the region of £195K / G Green / L Willis
Yeovil Crematorium / 147 / 64 / 83 / Full details in outturn report to Burial Committee / I Johns / G Green
NB: The under spent budgets will now be re-phased into the capital programme for future years, after taking into account completed schemes and carry forwards.
8. The following schemes were also returned to the reserves schemes list or capital balances during the year:
Amount£’000 / Scheme / Reason / Returned to:
Reserve Schemes / Available capital balances
40 / E-procurement E-government / Alternative approaches and software modules used therefore no longer needed, returned to E-government reserve / Ö
22 / Gypsy Site Tintinhull – Affordable housing / No longer required as separate funding for Gypsy site project, returned to affordable housing reserve / Ö
2 / Eastern End Regeneration Improvement Grants / Balance of funding returned to Yeovil Vision reserve / Ö
1 / Eastern End Regeneration Feasibility / Balance of funding returned to Yeovil Vision reserve / Ö
35 / Box Factory / Agreed at District Executive 2nd December 2010 as slippage had been on going for some time / Ö
3 / Historic Buildings Grant / Funds unused so returned to Housing & Planning Delivery Grant / Ö
Note: Available capital balances are funds from which new projects are allocated during the capital bids process. The reserve schemes list is where funds have been approved in principal for themes such as affordable housing or E Government but the specific schemes, which they are funding, have been delayed or not yet fully appraised.
Virements and Revenue Contributions to Capital
9. Members are asked to approve the following virements and revenue contributions to capital: -
Amount£’000 / From / To / Reason
60 / Information Systems Revenue Budget / Microsoft Enterprise Agreement project. / The Microsoft Enterprise Agreement. Project was planned with a contribution from revenue towards the installation of the IT thin client.
24 / Infrastructure & Park Homes – Ilton Twisted Willows Gypsy Site / Infrastructure & Park Homes – Ilton Chubbards Cross Gypsy Site / To reflect spend to date on site. Savings on Twisted Willows site at Ilton due to type of utility blocks installed.
36 / Infrastructure & Park Homes – Ilton Twisted Willows Gypsy Site / Infrastructure & Park Homes – Contingency / Savings on Twisted Willows site at Ilton due to type of utility blocks installed allows budget to be returned to contingency.
20 / Home repairs assistance grants / Houses of multiple occupation grants / To reflect expected expenditure in 2011/12.
140 / Total Virements and Revenue Contributions to Capital
Financing of the Capital Programme
10. The £2,734,000 actual spend referred to in paragraph 7 is the net position which excludes external contributions and grants. The gross spend of £5,814,000 is the total capital expenditure before funding sources are included and requires financing. Members are recommended to approve the final financing of the capital programme from the following sources: -
Resources Used / Actual£’000 / Planned
£’000
Useable Capital Receipts / 2,719 / 6,974
External Contributions from funding partners / 1,034 / 2,167
Capital Grants from Central Government / 1,990 / 1,848
Loan Repayments / 71 / 65
Total Resources Used / 5,814 / 11,054
Capital Spending Pattern
11. The graph below shows the actual spend compared to revised budget for the last 5 years. The total 2010/11 spend represented 59.9% of the revised budgeted spend for the year, which is a decrease from last years percentage spend against budget when 71.3% was achieved. The major reasons for this are itemised in paragraph 7.
Uncommitted Area Capital Balances
12. Each Area has balances that can be used during the year. The position of the Area balances at 31st March 2011 and any movement within the year are as follows:
AreaEast
£’000 / Area North
£’000 / Area South
£’000 / Area West
£’000 / Totals
£’000
Position at start of financial year / 103 / 192 / 94 / 99 / 488
Additional resources approved by DX / 35 / 35 / 35 / 35 / 140
Allocations to/(from) reserve during year / (24) / 15 / 46 / (15) / 22
Position at end of financial year / 114 / 242 / 175 / 119 / 650
13. Each area was allocated an additional £35,000 in February 2011 for schemes in 2011/12. The table shows that following these approvals Area unallocated capital balances have increased by £162,000.
14. The table below details how the uncommitted balances have been set aside for initiatives such as rural housing and infrastructure, play development, and community & leisure grants but which at the year end have not been committed to specific projects.
AreaEast
£’000 / Area North
£’000 / Area South
£’000 / Area West
£’000 / Totals
£’000
Parish Infrastructure Fund / 30 / 30
Retail Support / 5 / 5 / 10
Community & Leisure Grants / 29 / 29
Village Halls & Community Facilities / 20 / 20 / 40
Local Priority Projects / 111 / 111
Play Areas & Youth Facilities / 15 / 15
Uncommitted / 50 / 111 / 160 / 94 / 416
Position at end of financial year / 114 / 242 / 175 / 119 / 650
Delayed Projects
15. In accordance with the capital strategy any project that has been delayed by more than one year before starting is required to be reviewed so that members can consider whether to continue to support the project or to re-allocate the budget to new schemes. Delayed projects of longer than one year as at the 31st March 2011 are detailed below;
Scheme / Budget£’000 / No of Months Elapsed Since Original Approval / Explanation / Request for Inclusion in 2010/11 Capital Programme (Y/N)
E Gov – E Billing for Council Tax / 20 / 73 / Project on hold pending an upgrade. / Y
Martock Parish Hall / 50 / 36 / The planned purchase of additional space has not been completed; but is still under active review by Martock Parish Council as part of an overall local strategy for community facilities. / Y
Land Acquisition & Enhancements Waterside, Wincanton / 35 / 36 / Unable to proceed with works until land acquisition concluded. / Y
Replacement boiler in Brympton Way / 80 / 12 / Boiler life is longer than expected; work has been re-profiled for installation September 2011. / Y
Replacement boiler in Chard / 50 / 12 / Boiler life is longer than expected; work has been re-profiled for installation September 2011. / Y
Relocation of IS supplies at Kelways / 34 / 23 / Works on hold as Kelways has been vacated but still awaiting final agreement with landlord. / Y
Demolition of single storey building at Flax Mills / 15 / 52 / Responsibility for building now with adjacent landowner under current lease arrangements. Site will be reviewed at annual building inspections and possible new capital bid brought in the future. / N
Yeovil Rec Synthetic Sports Pitch / 224 / 36 / Further discussions are on going with England Hockey regarding funding for this project. / Y
Total Delayed Projects / 508
Completed schemes
16. The table below shows the schemes completed in the period. Post completion reports are attached in Appendix C, where indicated, the remaining post completion reports will be included in the quarter 1 monitoring report for 2011/12;
Scheme / RevisedBudget
£’000 / Actual
Spend
£’000 / Responsible Officer / Post Completion report Y/N
Capital Salaries / 200 / 225 / A Card / N/A
Eastern End, Yeovil Improvement Grants / 20 / 18 / K Close / Y
Alternative electric supply at Brympton Way / 200 / 202 / I Johns / N
Contribution to public toilets in Peter Street, Yeovil / 150 / 107 / P Biggenden / N/A
Vehicle weight monitoring system / 23 / 19 / C Cooper / Y
Yeovil Vision Flagship play space / 183 / 183 / R Parr / N
The following feasibility reports were also completed during 2010/11:
Scheme / RevisedBudget
£’000 / Actual
Spend
£’000 / Responsible Officer / Post Completion report Y/N
Eastern End Regeneration Feasibility / 22 / 21 / K Close / Y
Yeovil Bus Station Feasibility / 19 / 20 / K Close / Y
17. The following schemes have incurred under/(over spends). Details regarding the under/(over spends) are contained within the post completion reports.
Project / Over/(Under) Spend
£’000 / Within acceptable limits? / Explanation / Project Manager / Project Sponsor
Capital Salaries / 25 / N / More staff time spent on capital projects than expected / A Card / D Parham
Eastern End, Yeovil Improvement Grants / (2) / Y / Not required / K Close / H Rutter
Eastern End Regeneration Feasibility / (1) / Y / Not required / K Close / H Rutter
Yeovil Bus Station Feasibility / 1 / Y / Not required / K Close / H Rutter
Alternative electric supply at Brympton Way / 2 / Y / Not required / I Johns / G Green
Contribution to public toilets in Peter Street, Yeovil / (43) / N / Prudent cost control and following initial ground investigations the building was designed to meet the site condition and therefore the contingency fund was not required. / P Biggenden / G Green
Vehicle weight monitoring system / (4) / Y / Not required / C Cooper / L Willis
Note: Under spends are shown in brackets ( )
18. In order for an over/under spend to be within acceptable limits, the variation on budget should be within £10,000 or 5% (whichever is greater) of revised budget. On this basis, 2 of the 8 competed schemes are not within an acceptable margin of the overall budget. Explanations for this under/over spends are shown in the table. The overall under spend is £22,000, £3,000 of which has already been returned to the Yeovil Vision Reserve, the balance of £19,000 will be returned to capital balances.