(OPEN TO THE PUBLIC) / ITEM NO. 6
REPORT OF THE CITY TREASURER
TO THE BUDGET SCRUTINY COMMITTEE
ON WEDNESDAY 4thJUNE 2008
TITLE : CAPITAL OUTTURN 2007/08
RECOMMENDATION :
Members are requested to review the outturn position regarding the 2007/08 capital programme.
EXECUTIVE SUMMARY :
The report provides details of the funding of the 2007/08 capital programme and the outturn expenditure.
BACKGROUND DOCUMENTS :
(Available for public inspection)
1. Report to Budget Scrutiny Committee Wednesday 2ndApril
2. Various working papers within the Finance Division
CONTACT OFFICER :Tony Thompstone 793-2685
E-mail :
ASSESSMENT OF RISK :
Low - the outturn expenditure and resources as reported are unlikely to change.
SOURCE OF FUNDING :
This report identifies the sources of funding for the 2007/08 Capital Programme and the impact on the 2008/09 capital programme.
LEGAL ADVICE OBTAINED : Not Applicable
FINANCIAL ADVICE OBTAINED :
This report concerns key aspects of Council’s capital finance and has been produced by the Finance Division of Customer and Support Services.
WARD(S) TO WHICH REPORT RELATE(S) : ALL WARDS
KEY COUNCIL POLICIES : : Budget Strategy
REPORT DETAILS
- INTRODUCTION
1.1At the meeting of the Budget Scrutiny Committee on the 2ndApril 2008 members were informed that the current capital programme for 2007/08 was £104.317m with capital funding amounting to £98.318m, comprising assumed internal funding of £31.702m and estimated external funding of £66.616m, giving a shortfall in resources of £5.999m.
1.2This report now advises members of the 2007/08 capital outturn.
2. 2007/08 CAPITAL PROGRAMME OUTTURN
2.1Members are asked to note the capital programme and resources outturn:-
Resources
Last Month / Outturn / Variation /Comments
£m / £m / £mSupported Borrowing / 6.361 / 6.308 / (0.053) / Mental health and contaminated land expenditure was less than forecast
Unsupported Borrowing / 7.544 / 8.304 / 0.760 / Project Serve costs were funded by unsupported borrowing
RCCO / 0.000 / 0.131 / 0.131 / Schools contributions to capital programme
Capital receipts / 17.797 / 13.572 / (4.225) / Delays on the disposal of land and buildings
Subtotal – Internal resources / 31.702 / 28.315 / (3.387)
Grants / 65.070 / 69.314 / 4.244 / Acquisition of Regent Road trading estate entirely grant funded, increased grant on NDC schemes
Other Contributions / 1.546 / 0.641 / (0.905) / Delays in receiving external contributions, temporarily funded by capital receipts
Subtotal – External resources / 66.616 / 69.955 / 3.339
Total Resources / 98.318 / 98.270 / (0.048)
Programme
Last Month / Outturn / Variation /Comments
Programme
/ £m / £m / £mPrivate Sector Housing / 34.233 / 32.811 / (1.422) / Stock option costs will be accounted for in 2008/09
Public Sector Housing / 20.787 / 21.102 / 0.315 / Programme will be balanced over 2 years taken together
Children's Services / 12.826 / 13.672 / 0.846 / Academy site acquisition costs were incurred in March rather than in April and an overspend on Radclyffe St Clements
Highways / 5.063 / 5.117 / 0.054
Community, Health And Social Care / 3.285 / 3.346 / 0.061
Environmental Services / 2.801 / 1.533 / (1.268) / Changes to the SSCF programme and slippage on the parks infrastructure programme
Customer and Support Services / 4.256 / 7.050 / 2.794 / Year end accounting adjustment between revenue and capital, the repayment of clawed back grant on a capital receipt. Take up in full of the capitalisation direction for equal pay.
Chief Executives / 12.168 / 13.875 / 1.707 / Acquisition of Reagent Road trading estate was achieved in 2007/08. This increased expenditure was partially offset by slippage on the Corporate Security Strategy costs and the Salford West Action plan
Planning / 8.898 / 9.398 / 0.500 / Office moves expenditure was in front of profile
Total Programme / 104.317 / 107.904 / 3.587
Surplus/(Shortfall) of Resources in current year / (5.999) / (9.634) / (3.635)
Overall Position
2.2The shortfall in receipts required to fully fund the capital programme was £9.579m. Temporary unsupported borrowing will be required until sufficient receipts have been received in the new year to meet the shortfall.
2.3The increase in the shortfall was due to substantial capital receipts from disposals at BoysnopeWharf, the Withies and Radclyffe St Clements school being delayed past the end of the financial year.
2.4The 2008/09 capital programme will now be updated to reflect the 2007/08 outturn position and the first monitoring report will be submitted to this Committee in July.
2.5Appendix 1 provides the detail of the capital financing statement.
3RECOMMENDATION
3.1Members are requested to review the outturn position regarding the 2007/08 capital programme.
JOHN SPINK
CITY TREASURER
1
Appendix 1 – Capital Financing Statement 2007/08
SUPPORTED BORROWING / £Single Capital Pot Housing / 329,000.00
Single Capital Pot Children's services used in Children's services / 1,960,964.00
TCF ring fenced to Radclyffe and St Clements / 675,000.00
Single Capital Pot Highways / 3,052,000.00
Single Capital Pot Social Services / 110,000.00
Ringfenced SCE Mental Health 06/07 / 61,949.19
Ringfenced SCE Mental Health 07/08 / 31,642.17
Single Capital Pot Children’s social care / 57,586.68
Single Capital Pot Children’s social care take up in full / 7,413.32
Ringfenced SCE Contaminated Land / 22,293.00
Total Supported Borrowing / 6,307,848.36
UNSUPPORTED BORROWING
Planning / 5,035,433.34
Arts and leisure / 75,274.80
Children's Services / 6,335.85
Customer and support services / 3,187,967.35
Shortfall on receipts / 9,579,216.49
Total Unsupported Borrowing / 17,863,490.16
RCCO
Housing Major Repairs Allowance / 16,208,152.00
Schools contribution / 126,059.82
Total RCCO / 16,334,211.82
CAPITAL GRANTS
Private sector housing - Market Renewal Fund / 18,378,894.00
Private sector housing - private sector grant / 5,623,000.00
Private sector housing – SSCF / 230,800.00
Private sector housing – LPSA / 70,391.00
Private sector housing – EP / 809,321.00
Private sector housing – NDC / 2,450,000.00
Private sector housing – DFG / 994,892.00
Education Capital grants / 7,219,484.84
Education SSCF / 44,527.97
Highways major schemes TSG / 498,100.84
Highways block 3 TSG / 1,291,000.00
Social Services - Improving Information Management Grant / 186,000.00
Social Services – SSCF / 257,312.12
Social services - extra care grant / 345,330.00
Chief Executive NDC / 514,887.19
Chief Executives ERDF / 405,770.94
Environmental services WPEG / 235,007.00
Environmental services SSCF / 523,998.00
Arts and leisure LPSA / 218,891.00
Public sector energy performance cert / 81,520.00
Private sector housing BCU / 61,146.00
Arts and leisure Lottery / 580,093.32
corp servs linkage plus grant / 57,848.00
Chief execs NWDA / 9,982,717.22
Chief execs NWDA sif / 963,437.00
Integrated Children's Services grant / 82,219.96
Barton Moss DFES grant / 347,211.83
esocare mobile technology grant / 40,346.32
Planning NRF / 58,765.00
Planning PDG / 98,000.00
Planning NDC / 376,238.17
Planning ERDF / 78,568.72
Total Capital Grants / 53,105,719.44
OTHER CONTRIBUTIONS
Private sector housing Cobbetts / 30,934.86
Social Services s106 cultural quarter / 13,485.00
Social Services Hardmans Insurance / 11,193.70
vehicles insurance / 21,000.00
Environmental services S106 / 259,617.00
Chief executives URC contributions / 20,000.00
Arts and Leisure Bridgewater FC / 165,370.34
Broughton leisure study contributions / 4,445.00
energy contribution / 5,000.00
Planning S106 and other contributions / 169,380.25
Total Other Contributions / 700,426.15
USABLE CAPITAL RECEIPTS
Private Sector Housing / 4,161,513.14
Public Sector Housing / 4,483,665.93
Children's Services take up of SCP / -7,413.32
Children's Services / 2,976,177.33
Highways / 276,059.70
CHSC / 648,812.97
Esocare / 132,000.00
Environmental Services / 491,590.43
Customer and Support Services / 3,782,798.85
Arts and Leisure / 636,025.90
Chief Executives / 2,168,763.95
Chief Executives 0607 078 grant due to corporate 0607 0708 SIF / -180,468.09
Planning Services / 3,582,068.87
General shortfall on receipts / -9,682,163.49
Parr Fold fire insurance / 102,947.00
Total Capital receipts / 13,593,116.84
Total Resources / 107,904,812.77