Agenda item

Capital Programme 2009-10 - Position as at end of January 2010

B Report of the Director of Finance and Support

Decision:

1. Cabinet approved the following scheme to be added to the capital programme for 2009-10.

Scheme Reference, Description

Directorate

Narrative

2009-10

Future

Years

Funding Source

2009-10/GF074 Capitalisation Directive January 2010

Finance & Support

Capitalisation directives awarded January 2010 for statutory redundancy costs and pension strain incurred 1 April 2009 to 31 March 2010.

210,000

GF Capital Receipts

Further details of this appraisal were set out Annex A of the report.

2. Cabinet approved the following variations to schemes in the capital programme for 2009-10.

Scheme Reference, Description & Directorate	Narrative		2009-10 £	Future Years £	Funding Source
Budget Increase
2009-10/GF031 V01 One Stop Shop Transformation Finance & Support	The original plan for this project did not include co-locating with external partners. An application was submitted to NIEP, which delayed the start of the project in 2009-10. NBC has been awarded £260k towards the cost of co-locating. Additional building works of £150k are required to accommodate the partners, which will take place in 2010-11. This will result in improved service delivery for all partners. There is an overall saving to NBC of £10k (prudential borrowing)	(185,000)		335,000	NIEP
Budget Increase
2009-10/GF069 V01 Market Square Lighting Planning & Regeneration	The original budget for this project did not include WNDC's management fee. The budget needs to be increased by £18,125 to include this fee; additional funding will be received to cover this.	18,125		-	WNDC
Scheme Reference, Description & Directorate	Narrative		2009-10 £	Future Years £	Funding Source
Budget Decrease
2008-09/GF061 V02 Out of School Hours Play Activities 2008-09/GF062 V01 Holiday Play 2008-09/GF064 V01 Innovative Play Days 2008-09/GF063 V02 Improving Access Environment & Culture	The funding for these projects were originally classified as capital, however due to the nature of play and the equipment used in play, The Big Lottery has agreed to reclassify this funding as revenue. The income and expenditure budgets will be moved from the capital programme to the revenue budget. Project variations have been submitted for each scheme, detailing the amount for each project and the split between financial years.		(19,466)	(9,400)	Big Lottery
2009-10/GF061 V01 Capitalisation Directive October 2009 Finance & Support	The costs to which this project relates are now due to be incurred in Autumn 2010. As the capitalisation directive will have expired by then a new bid will need to be made to CLG in 2010-11.		(300,000)	-	Prudential Borrowing
Neutral Budget Impact
2007-08/PR0010 V02 Hot Property Housing GF	Additional budget is required due to the increased demand for this initiative. This will reduce the number of homes in Northampton that are suffering from fuel poverty.		10,000	-	Prudential Borrowing
2007-08/PR0011 V02 Renovation Grants Housing GF	The variation is required due to the increased demand for funding under the Hot Property initiative. Transferring funds from this budget will allow Northampton Borough Council to address the most urgent and unmet needs in society.		(10,000)	-	Prudential Borrowing

Further details of these variations were set out in Annex B of the report.

3. Cabinet noted:

a) The capital programme monitoring position as at end of January 2010, including forecast outturns, revenue expenditure funded by capital and slippage into 2010-11, as set out at Annex C, D and E.

b) The funding arrangements for the 2009-10 capital programme as set out at Annex F.

4. Cabinet approved the following scheme:

Scheme Reference, Description

Directorate

Narrative

2009-10

Future

Years

Funding Source

2009-10/GF073 Play Builder - Racecourse

Northampton Borough Council, with friends of Northampton Racecourse (FONR), have successfully bid for £49k of Play builder funding. The funding will be used to provide a new adventure play area, aimed at 8 – 13 year olds, on the Racecourse. The need for improved play opportunities throughout the Borough was identified in the NBC Play Strategy. The funding will purchase a variety of new play equipment as identified through local consultation.

49,000

Grant DCSF

Funding Information

· This project is to be funded by a government grant from the Department of Children, Schools and families (DCSF) via Northamptonshire County Council.

· Conditions of the grant are that the funds are fully spent by 31.03.2010. It is essential that works start as soon as possible in order to deliver this project within the specified timescales laid down by the grant conditions. Ongoing maintenance costs will be covered by parks and open spaces and can be contained within the existing budgets.

Minutes:

Councillor Church left the room in accordance with his earlier declaration of interest.

Councillor Mildren noted the budget increase to meet the WNDC management fee for the Market Square project and also noted the capitalisation cost to meet redundancy and pension costs and that these needed to be met from capital receipts and not borrowing. He queried whether there was a need to generate more capital receipts. He also queried whether the Cabinet was confident that given the overspend on the General Fund Capital Programme to date that the balance would be spent in the two remaining months of the financial year.

Councillor Clarke, in referring to the Market Square Lighting Scheme, noted that the WNDC whilst making this increased charge to the Council, would also provide the Council with the funding with which to pay their fees. This seemed ludicrous. He queried how the fee had been determined and why the Council was not similarly charging WNDC for planning and other advice that it gave them. He did not believe that the Council was getting value for money from WNDC. In respect of the One Stop Shop Project, he stated that the extra facilities that were being provided for partners should be paid for by them.

The Director for Finance and Support submitted a report, which sought approval for a capital scheme to be added to the programme for 2009/10; approval for variations to the programme for 2009/10; to advise Cabinet on the latest Capital Programme monitoring position; to advise the Cabinet how the 2009/10 Capital Programme would be funded and to seek approval to the addition of a further scheme. The Director noted that approximately half of the projected slippage of the programme related to disabled adaptations where awards had been made but applicants had not yet acted on them. In respect of the One Stop Shop, the Director confirmed that the Council was not funding the extra works but money for this had been granted by the Regional Partnership. In practice there was an overall saving to the Council of £10,000. The Director circulated the details of an additional scheme to be added to the programme in respect of Northampton Racecourse and a successful bid from the Friends of Northampton Racecourse for £49,000 of Play Builder funding, which was to be used to provide a new adventure play area aimed at eight to thirteen year olds on the Racecourse. The funding would purchase a variety of new play equipment, as had been identified through local consultation.

Councillor P D Varnsverry welcomed the additional scheme, as it would help to improve the health of young people by providing this new play opportunity. He commented that the Friends of Northampton Racecourse should be congratulated on their initiative.

RESOLVED (1) That approval be given to the following scheme to be added to the capital programme for 2009/10.

Scheme Reference, Description

Directorate

Narrative

2009-10

Future

Years

Funding Source

2009-10/GF074 Capitalisation Directive January 2010

Finance & Support

Capitalisation directives awarded January 2010 for statutory redundancy costs and pension strain incurred 1 April 2009 to 31 March 2010.

210,000

GF Capital Receipts

(2) That approval be given to the following variations to schemes in the capital programme for 2009/10.

Scheme Reference, Description & Directorate	Narrative	2009-10 £	Future Years £	Funding Source
Budget Increase
2009-10/GF031 V01 One Stop Shop Transformation Finance & Support	The original plan for this project did not include co-locating with external partners. An application was submitted to NIEP, which delayed the start of the project in 2009-10. NBC has been awarded £260k towards the cost of co-locating. Additional building works of £150k are required to accommodate the partners, which will take place in 2010-11. This will result in improved service delivery for all partners. There is an overall saving to NBC of £10k (prudential borrowing)	(185,000)	335,000	NIEP
Budget Increase
2009-10/GF069 V01 Market Square Lighting Planning & Regeneration	The original budget for this project did not include WNDC's management fee. The budget needs to be increased by £18,125 to include this fee; additional funding will be received to cover this.	18,125	-	WNDC
Scheme Reference, Description & Directorate	Narrative	2009-10 £	Future Years £	Funding Source
Budget Decrease
2008-09/GF061 V02 Out of School Hours Play Activities 2008-09/GF062 V01 Holiday Play 2008-09/GF064 V01 Innovative Play Days 2008-09/GF063 V02 Improving Access Environment & Culture	The funding for these projects were originally classified as capital, however due to the nature of play and the equipment used in play, The Big Lottery has agreed to reclassify this funding as revenue. The income and expenditure budgets will be moved from the capital programme to the revenue budget. Project variations have been submitted for each scheme, detailing the amount for each project and the split between financial years.	(19,466)	(9,400)	Big Lottery
2009-10/GF061 V01 Capitalisation Directive October 2009 Finance & Support	The costs to which this project relates are now due to be incurred in Autumn 2010. As the capitalisation directive will have expired by then a new bid will need to be made to CLG in 2010?11.	(300,000)	-	Prudential Borrowing
Neutral Budget Impact
2007-08/PR0010 V02 Hot Property Housing GF	Additional budget is required due to the increased demand for this initiative. This will reduce the number of homes in Northampton that are suffering from fuel poverty.	10,000	-	Prudential Borrowing
2007-08/PR0011 V02 Renovation Grants Housing GF	The variation is required due to the increased demand for funding under the Hot Property initiative. Transferring funds from this budget will allow Northampton Borough Council to address the most urgent and unmet needs in society.	(10,000)	-	Prudential Borrowing

(3) That the following be noted:

(a) The capital programme monitoring position as at end of January 2010, including forecast outturns, revenue expenditure funded by capital and slippage into 2010/11, as set out at Annex C, D and E.

(b) The funding arrangements for the 2009/10 capital programme as set out at Annex F.

(4) That approval be given to the addition of the following scheme.

Scheme Reference, Description

Directorate

Narrative

2009-10

Future

Years

Funding Source

2009-10/GF073 Play builder – Racecourse

Northampton Borough Council, with Friends of Northampton Racecourse (FONR), have successfully bid for £49k of Play builder funding. The funding will be used to provide a new adventure play area, aimed at 8-13 year olds, on the Racecourse. The need for improved play opportunities throughout the Borough was identified in the NBC Play Strategy. The funding will purchase a variety of new play equipment as identified through local consultation

49,000

Grant

DFCSF

Supporting documents:

Contact the Council

Agenda item

Capital Programme 2009-10 - Position as at end of January 2010

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