CLACKMANNANSHIRE COUNCIL

REPORT TO: SCRUTINY COMMITTEE MEETING ON 21STJUNE 2007

SUBJECT: GENERAL SERVICES CAPITAL PROGRAMME: DRAFT FINAL POSITION TO 31ST MARCH 2007 & SUMMARY TO 2008/09

PREPARED BY: KISH PARMAR, PRINCIPAL ACCOUNTANT

1.0SUMMARY

1.1This report details the draft-final position of the General Services Capital Programme for 2006/07, together with a summary of budgets for 2007/08 and 2008/09. The figures are subject to final internal review being carried out as part of the year end work and external audit. This year end report concentrates on the progress in financial terms on all schemes in the three-year programme, and highlights any significant variances to the position previously reported.

1.2The table below summarises capital borrowing requirement for the 3 years to 08/09 and shows the changes to the approved budgets.

2006/07 / 2007/08 / 2008/09 / Total
Revised Net Expenditure (Council Borrowing) as per previous report of 22nd Feb 2007 – excluding Council contribution to PPP project / 8,940 / 10,262 / 6,474 / 25,676
Additional projects to be transferred from 2006/07 to 2007/08 since the last report / (1,126) / 1,126
Further Revision to programme / additional Over or Under spends as per draft-final position, since the last report, and new revisions/proposals for 07/08 & 08/09 submitted to Council / 269 / 272 / 541
Additional Capital Receipts from sale of assets / (47) / (47)
Revised Net Expenditure (Council Borrowing) as per current out-turns (excluding PPP) / 8,036 / 11,660 / 6,474 / 26,170
School’s PPP Project Council Contribution: / 2006/07 / 2007/08 / 2008/09 / Total
PPP Capital Support carried forward / 11,925 / 11,925
PPP Capital Support allocated for 08/09 / 5,200 / 5200
Total PPP Capital Support from Council / 17,125 / 17,125
Funded By:
Capital Receipts from sale of earmarked assets
Schools Fund for PPP / (16,350)
(775) / (16350)
(775)

1.3The Council’s contribution towards the Schools PPP project is shown separately from the main capital programme as it will now be financed mainly from asset sales receipts and a small proportion of Schools fund grant.

1.4The draft-final position shows the net expenditure (Council borrowing) in 2006/07 has decreased by £904k to £8,036k from the position reported in February. This is attributed principally to transfers of projects to 07/08 amounting to £1,126k and additional capital receipts of £47k. Additional overspends in other projects of £269k brings the net variance to £904k. The 3-year Capital Programme for 2007/08 to 2009/10 was presented to the Special Council meeting on 8th February. The revised net expenditure, excluding the PPP project, for 07/08 and 08/09 of £11,660k and £6,474k respectively, takes into account any transfers and revisions since the last report. The projected total net expenditure (Council borrowing) for the three years to 2008/09 including projects carried from 05/06 is £26,170k, which is an increase of just under 2% from the position reported in February.

2.0RECOMMENDATION

2.1The Committee is asked to note the draft-final financial position for 2006/07 and the borrowing requirement for capital programme for the three years to 2008/09.

3.0BACKGROUND

3.1The significant changes since the previous report are as follows:

3.1.1A further £1,126k is expected to be transferred to 2007/08, the most significant being a further £623k for the Kilncraigs project, £147k for Vehicle replacement, £140k for Roads & Footpaths improvements and £121k for Schools Alarms. Conversely, two projects where carry forwards have been reduced because of accelerated spend are Bridges (£171k) and Alloa Town Centre (£140k). Reasons for these and other minor carry-forwards are detailed in the appendix.

3.1.2A further net overspend of £269k in some projects since the last report, include an additional £108k of unbudgeted spend on work on access roads in relation to the new PPP Alva School and £92k payment to Ceteris for Lime Tree House as part of the property swap arrangement. Also, the Council spent £105k on upgrading public toilets which was not budgeted for in the current capital programme. £35k of this was funded by contribution from revenue and the balance of £70k by temporary borrowing in the current year. It is expected that this will be made good by revenue contribution to capital over the life of the asset. Conversely, there were some additional savings, namely £20k for wheeled litter bins and an anticipated overspend of £69k for contaminated land which will not take effect.

The various budget transfers are necessary to accommodate the rescheduling of the capital programme as advised in the previous report.

3.2There are no changes to the capital budgets and capital financing of the PPP scheme from what was presented to the P&A at their meeting in February.

3.3Appendix 1 gives brief details of the position in individual projects, including reasons for any further variations.

4.0CONCLUSION

4.1The draft-final position for 2006/07 shows the net borrowing requirement of £8,036k which is a decrease of £904k compared to the position reported in February. A large part of this decrease is as a result of projects being carried forward to 2007/08 amounting to £1,126k. There were minor net overspends in various projects of £269k and capital receipts of £47k which was not expected to be realised this year at the time of the last report.

4.2The carry-forwards will be added to the approved budget for 2007/08, including revisions to the budgets since the last report.

4.3The total borrowing requirement for the three years from 2006/07 to 2008/09 is expected to increase by about 1.9% from £25,676k to 26,170k as a result of the variances and revisions detailed in the report.

4.4The figures are draft and subject to internal review and external audit. While minor adjustments are possible, these are not expected to be significant.

5.0SUSTAINABILITY IMPLICATIONS

Not applicable for monitoring reports

6.0IMPLICATION FOR THE COUNCIL

6.1Financial implications:As noted in the report.

6.2Staff implications:None

6.3Declarations:

1The recommendations contained within this report support or implement Corporate Priorities, Council policies and/or the Community Plan:
Corporate Priorities / 
Council Policies / 
Community Plan / 
2In adopting the recommendations contained in this report the Council is acting within its legal powers / 
3The full financial implications of the recommendations contained in this report are set out in the report. This includes a reference to full life cycle costs where appropriate / 

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Head of Finance

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Director of Corporate Development

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