REPORT TO: SCRUTINY COMMITTEE MEETING ON 17TH JANUARY 2008
SUBJECT: GENERAL SERVICES CAPITAL PROGRAMME 2007/08 : OUT-TURN AS AT OCTOBER AND SUMMARY TO 2009/10.
Summary
This is the second financial monitoring report for the General Services Capital Programme this financial year and presents the anticipated out-turn for year, together with the summary of budgets for 2008/09 and 2009/10.
The report details variations from the anticipated out-turns advised in the previous report and from the approved budgets for 2007/08. The report details anticipated transfers of other budgets to future years following current review of the programme and highlights any savings and under spends. These transfers have been identified as necessary during the current round of Capital Monitoring meetings with project managers.
Considerable progress has already been made in the current ongoing projects and the proposed transfers will enable delivery of the planned programme most effectively and efficiently.
Recommendation
The Scrutiny Committee is asked to note the financial position and the borrowing requirement for General Services Capital Programme for the three years to 2009/10.
BACKGROUND
In the previous report to the Scrutiny Committee detailing out turns to August 2007, the position for 2007/08 was anticipated to be as follows:
Gross expenditure after all proposed transfers, overspends & savings was expected to be £10,733k
Grants & Capital Receipts, after all adjustments, were expected to be £2,957k
Net borrowing was expected to be £7,776k
The anticipated gross expenditure for 2008/09 and 2009/10, after all transfers indentified in the August out turn, was £11,363 and £10,715k respectively, with net borrowings of £10,113k and £9,069k
The current review of the programme and the out turn as at October 2007 shows that the net expenditure for 2007/08 is expected to increase by £359k from the position reported in the previous monitoring report, largely due to two projects which were expected to be transferred to next year, are now scheduled to be completed in the current year (see 3.5 below)
The table below summarises the financial position for the three years to 2009/10:
£’000 |
2007/08 |
2008/09 |
2009/10 |
Total for 3 years |
Budget approved by Special Council Meeting on 8th Feb 2007 |
|
|
|
|
Gross Expenditure |
12,474 |
6,534 |
11,065 |
30,073 |
Capital Receipts from Sale of Assets |
(2,594) |
(60) |
(1,646) |
(4,300) |
Net Expenditure (Council Borrowing) |
9,880 |
6,474 |
9,419 |
25,773 |
|
|
|
|
|
Changes from the anticipated out-turns reported to Scrutiny Committee on 11th Oct 2007 |
|
|
|
|
GROSS EXPENDITURE |
|
|
|
|
Anticipated Gross Expenditure after Transfers as at August Out-turns |
10,733 |
11,363 |
10,715 |
32,811 |
Anticipated savings in 2007/08 budgets (in addition to the savings reported to Scrutiny Committee on 11th Oct 2007) as per latest Capital Monitoring Meeting |
(20) |
|
|
(20) |
Spend funded by additional income now to be carried forward |
(285) |
285 |
|
|
Additional Budget transferred from 2007/08 to 2008/09 as per October out turn |
(105) |
105 |
|
|
Budgets for programmes which were expected to be transferred to 2008/09 but are now expected to be completed in 2007/08 as per latest Capital Monitoring Meeting |
496 |
(496) |
|
|
Anticipated Gross Expenditure after Transfers as at October Out-turns |
10,819 |
11,257 |
10,715 |
32,791 |
|
|
|
|
|
GRANTS & CAPITAL RECEIPTS |
|
|
|
|
Anticipated Grants & Capital Receipts as at August Out-turns |
(2,957) |
(1,250) |
(1,646) |
(5,853) |
Additional Income delayed to next year |
285 |
(285) |
|
|
Anticipated increase in general capital receipts in 2007/08 as per latest Capital Monitoring Meeting |
(12) |
0 |
0 |
(12) |
Anticipated Capital Receipts as at October Out-turns |
(2,684) |
(1,535) |
(1,646) |
(5,865) |
|
|
|
|
|
NET EXPENDITURE (COUNCIL BORROWING) |
|
|
|
|
Anticipated Net Expenditure (Council Borrowing) as at August Out-turns |
7,776 |
10,113 |
9,069 |
26,958 |
Anticipated Net Expenditure (Council Borrowing) as at October Out-turns |
8,135 |
9,722 |
9,069 |
26,926 |
The current review shows that projects with gross expenditure totalling £496k which were expected to be transferred to 2008/09, are now scheduled to complete in the current financial year. These are as follows:
Alloa Town Centre: Public Realm Phase 2 £220k
Shllinghill to Town Hall: Environmental Regeneration £150k
Kelliebank Thermal Efficiency Windows £22k
Greenfield Driveway & Parking £84k
Sun Tube, Lime Tree House (now not proceeding) £20k
£496k
Since the last report, budgets of two additional projects amounting to £105k will be carried forward to 2008/09. These relate to unspent balances which will be required next year and are relatively small
At the last Scrutiny Committee, a request was made to highlight 2007/08 approved projects proposed for carry forward to 2008/09 but which are at risk of not being delivered in 2008/09. At the last Capital Monitoring meeting, the project managers have indicated that all projects proposed for carry forward to 2008/09 are programmed to be delivered in that year. This is on the basis that appropriate planning permission, external funding (where appropriate) and acceptance of tenders for larger projects are progressing reasonably satisfactorily.
Details of reasons for proposed transfers, savings & overspends and current project status are provided in Appendix 1.
The current review and out-turn shows that the net borrowing requirement for the 3 years to 2009/10 is expected to decrease by £32k from £26,958k (reported in the previous report) to £26,926k. In summary, this is attributed to the following
Additional savings in 2007/08 (£20k)
Additional general capital receipts in 2007/08 (£12k)
Appendix 1 gives brief details of the progress for each of the main projects currently been undertaken by the Service.
CONCLUSION
This, the second financial monitoring report for General Services Capital Programme in 2007/08 highlights additional transfers and savings of various budgets for the 3 years to 2009/10 and additional capital receipts in 2007/08. The projected out-turn as at October shows a net saving of £32k in borrowing for the 3 years to 2009/10.
SUSTAINABILITY IMPLICATIONS
Not applicable to monitoring reports
IMPLICATIONS FOR COUNCIL
6.1 Financial implications: As noted in the report.
6.2 Staff implications: None
DECLARATIONS
7.1 The recommendations contained within this report support or implement Corporate Priorities, Council policies and/or the Community Plan
Corporate Priorities (Key Themes) (Please tick)
Achieving Potential |
|
Maximising Quality of Life |
|
Securing Prosperity |
|
Enhancing the Environment |
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Maintaining an Effective Organisation |
|
Council Policies (Please detail)
Community Plan (Themes) (Please tick)
Community Safety |
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Economic Development |
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Environment & Sustainability |
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Health Improvements |
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7.2 In adopting the recommendations contained in this report, the Council is acting within its legal powers (Please tick)
7.3 The 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. (Please tick)
___________________________________________________________
Head of Finance
___________________________________________________________
Director of Corporate Development
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