ANNEXE 2 CAPITAL INVESTMENT PROGRAMME 2016/17 …committees.oldham.gov.uk/documents/s75032/5 Annexe 2 - Q2 Capital... · ANNEXE 2 CAPITAL INVESTMENT PROGRAMME 2016/17 ... The Board

ANNEXE 2 CAPITAL INVESTMENT PROGRAMME 2016/17 – QUARTER 2 1 Background 1.1 The original capital programme for 2016/17 reflects the priorities outlined in the capital

strategy as approved at Cabinet on 11 February 2016 and confirmed at the Council meeting on the 24 February 2016.

1.2 The position as at 30 September 2016 is highlighted in this report but as the year

progresses the outturn projections will reflect the evolving position. 1.3 For the remainder of the financial year, the programme will continue to be monitored and

revised to take account of any new developments and changes in the profile of planned expenditure.

2 Current Position 2.1 The approved capital programme summary position for the five years 2016 to 2021,

approved by Council on 24 February 2016 is summarised in Table 1 and shows capital programme expenditure of £80.544m in 2016/17.

Table 1 : Capital Programme 2016/17 to 2020/21

2016/17 2017/18 2018/19 2019/20 2020/21 TOTAL

£000 £000 £000 £000 £000 £000

Original Budget (Feb 2016)

80,544 78,009 7,144 4,107 3,322 173,126

2.2 Table 2 shows the capital programme for 2016/17, with previously reported budget of

£77.877m. The revised capital programme at 30 September 2016, taking account approved new schemes and variations and proposed variations give a revised budget of £69.597m.

2.3 Actual expenditure to 30 September 2016 was £19.000m (27.3% of forecast outturn).

This is in alignment with spending profiles in previous years, as expenditure is usually slower in the earlier part of the financial year. The position will be kept under review and budgets will be managed in accordance with forecasts.

Annual Review of the Capital Programme

2.4 Members will recall that the Council undertakes an annual review of the capital

programme. This is a well-established cornerstone in the monitoring of the capital programme. The aim of the exercise is to;

a) Review the projects in the programme, especially those that have not yet started, to

ensure that these still meet corporate priorities b) Consider the progress of projects c) Identify any unutilised or under- utilised resources d) Consider any reallocation of resources in the context of the wider pressures on the

capital programme

2.5 The outcome of the 2016/17 review was reported to the Capital Investment Programme Board (CIPB) on 3 October. The Board recommended a series of virements/rephasing of the capital programme. In total £5.324m was recommended for rephasing into future years due to revisions to the timing of project delivery. These projects and related spending are presented at Appendix A. In addition, a further £2.002m (£1.852m in 2016/17 and £0.150m in 2017/18) is recommended for removal from the capital programme together with £0.203m being realigned to ‘Funds Yet to Be Allocated.’ The details of the scheme and the reasons why the resources are no longer required for the projects to which they were initially assigned are shown in Appendix B. This removal of expenditure from the programme will enable a revenue saving to be made.

2.6 Total changes amount to £7.176m in 2016/17 and £0.150m in 2017/18. The impact of

these changes is reflected in Table 2. A further breakdown of Table 2 on a scheme by scheme basis is shown at Appendices C-G.

Table 2 – 2016/17 Capital Programme

Directorate/Service Revised Budget (M03) £000

Approved Budget

changes/ virements

(M04-6) £000

Proposed Virement

/Rephasing £000

Revised Budget (M06) £000

Forecast £000

Variance £000

Corporate and Commercial Services

3,882 274 0 4,156 4,156 0

Economy, Skills and Neighbourhoods

63,477 (1,082) (6,910) 55,485 55,485 0

Health and Wellbeing 4,404 (13) (469) 3,922 3,922 0

Housing Revenue Account (HRA)

1,426 75 0 1,501 1,501 0

Funds Yet to be Allocated

4,697 (367) 203 4,533 4,533 0

Grand Total 77,887 (1,113) (7,176) 69,597 69,597 0

(subject to rounding – tolerance +/- £1k) 2.7 A further £1.113m of approved budget changes and virements also impacts on the month

6 position. In the main, these relate to in-year additions in relation to the HRA Contribution to the Photo Voltaic Scheme, a contribution from Schools revenue budgets to capital schemes and external contributions to transport and Disabled Facilities Grant (DFG) schemes; and rephasing of transport and corporate property schemes into 2017/18.

Re-profiling of the Capital Programme

2.8 The revised capital programme for 2016/17 to 2020/21, taking into account all the above

amendments in arriving at the revised budget position, is shown in Table 3 together with the projected financing profile.

Table 3 – 2016/2021 Capital Programme

Directorate Budget

Revised Budget 2016/17

£000 2017/18

£000 2018/19

£000 2019/20

£000 2020/21

£000 TOTAL £000

Corporate and Commercial Services

4,156 249 249 249 249 5,152

Economy, Skills and Neighbourhoods

55,485 91,760 28,819 3,258 2,473 181,795

Health and Wellbeing 3,922 1,317 900 600 600 7,339

Housing Revenue Account 1,501 600 0 0 0 2,101

Funds Yet to Be Allocated 4,533 0 0 0 0 4,533

Grand Total 69,597 93,925 29,968 4,107 3,322 200,919

Funding

Grant & Other Contributions (20,861) (35,676) (24,797) (1,973) (1,973) (85,279)

Prudential Borrowing (27,704) (45,521) 661 (1,254) (469) (74,287)

Revenue (4,032) (5,467) 0 0 0 (9,499)

Capital Receipts (17,002) (7,261) (5,832) (880) (880) (31,854)

Grand Total (69,597) (93,925) (29,968) (4,107) (3,322) (200,919)

(Subject to rounding – tolerance +/- £1k)

Capital Receipts 2.8 The revised capital programme requires the availability of £17.003m of capital receipts in

2016/17 for financing purposes. The total capital receipts currently received in year, inclusive of £6.643m carried forward from 2015/16, is £10.604m.

2.9 The capital receipts position as at 30 September 2016 is as follows:

Table 4 – Capital Receipts 2016/17

£000

Capital Receipts Financing Requirement 17,003

Usable Capital Receipt b/fwd (6,643)

Actual received to date (3,961)

Further Required in 2016/17 6,399

2.10 As can be seen, a further £6.399m of capital receipts must be received by the year end in

order to meet the target level of capital financing included in the programme. Given the significant amount of receipts needed to finance the capital programme both in 2016/17 and future years it is imperative that the capital receipts/disposal schedule is adhered to. This will be subject to ongoing review throughout the year.

2.11 The Capital Strategy and Capital Programme 2016/21 includes an expected level of

anticipated receipts in each of the respective years and therefore an estimate as to the resultant level of over or under programming in order to present a balanced budget. The position as at 30 September 2016 is illustrated in the table below:

Table 5 – Capital Receipts 2016/21

Capital Receipts 2016/17

£000 2017/18

£000 2018/19

£000 2019/20

£000 2020/21

£000

Capital Receipts Anticipated in year (10,567) (7,340) (5,596) (852) (858)

C/fwd from previous year (6,643) (207) (286) (50) (22)

Total Receipts (17,210) (7,547) (5,882) (902) (880)

Capital Receipts Financing Requirement

17,003 7,261 5,832 880 880

Over/(Under) programming (207) (286) (50) (22) 0

2.12 The capital receipts position is monitored on a monthly basis. The most recent projections

are for receipts to exceed current planned requirements in later years of the programme. However, until there is more confidence as to the timing of planned asset disposals, a prudent approach has been adopted and these are excluded from current forecast.

3 Conclusion 3.1 As advised in the report, the overall position is likely to be revised during the year. There

will be further reprofiling as project managers reassess the progress and development of schemes including the availability of external funding, on which some schemes rely. No schemes are advising of an additional funding requirement, with all forecasts showing expenditure within the overall funding allocated.

APPENDIX A ANNUAL REVIEW OF THE CAPITAL PROGRAMME – REPROFILING OF BUDGETS

From 2016/17

To 2017/18

Scheme £000 Reason for reprofiling/removal

Reprofiling

Hollinwood / Langtree Regeneration 1,180 Overall rephase of the scheme.

District Centre 900 Design work is progressing in 2016/17 including value engineering of the scheme following this construction works will proceed, starting in 2017.

Lancaster Club - Strategic Regeneration Site Purchases

800 Budget remaining for pitch works to be completed in 2017.

Devolved Formula Capital (DFC) General Provision

706 Works on individual schools not now expected to be utilised in 2016/17

District Centre Development 295 Delay in the programme to align with the other related works.

Disposal Programme – Pre-sales Expenditure (Corporate Property)

250 Usage of this budget is market led and sites to be sold each year.

Foxdenton Redevelopment 200 Project appraisal currently being undertaken, capital works not expected until 2017/18.

Equity Homes Loans 167 Usage of this budget is dependent on uptake by individuals, rephasing reflects expected take-up.

DIF- District Investment Fund General Provision

150 Usage of this budget is dependent on uptake by community groups, rephasing reflects expected take-up

Shaw & Lees District Centres Business Support (Neighbourhood Developments)

125 Spend is led by demand from local businesses and rephasing is likely each year.

Free School Meals- Greenfield Primary

115 Rephasing due to delay in timescales for New Build school.

DFG- Boroughwide 110 Usage of this budget is dependent on uptake by individuals. Rephasing reflects expected take-up

Greenfield Primary School - Kitchen pod and classroom

106 Slippage due to delay in timescales for New Build school.

A62 Oldham Road Corridor- Manchester Boundary to M60 Motorway- District Centres Business Support (Neighbourhood Developments)

60 Spend is led by demand from local businesses and rephasing is likely each year.

Building Schools for the Future 50 Remedial budget required for retention and snagging works.

Hey With Zion Primary School - Electrical rewire

40 Maintenance works not expected to complete until 2017/18

Granby St Pitch 30 Works not completed in 2016/17 due to allowing time for the pitch to bed. This will be completed in Spring 2017.

DIF - District Partnership 22 Usage of this budget is dependent on uptake by community groups. Rephasing reflects expected take-up

DIF - District Partnership 18

TOTAL EXPENDITURE TO BE REPROFILED

5,324

APPENDIX B

ANNUAL REVIEW OF THE CAPITAL PROGRAMME – REMOVAL OF BUDGETS

Scheme 2016/17

£000 2017/18

£000 Reason for reprofiling/removal

Lancaster Club - Strategic Regeneration Site Purchases

1,000

Tender lower than anticipated

Alexandra Retail Park 350 150 Scheme now not progressing

Hobson Street Car Park 320 Tender lower than anticipated

Failsworth DC - Outstanding Compensations - General Provision

91 Provision no longer required, re

assign to Funds Yet to be Allocated

Civic Centre - CCTV upgrade 90 Underspend on completed scheme

2 Year Old (2YO) Provision - General Provision

84

Provision no longer required

Southlink (Maple House) - Replacement fire escape.

60

Scheme now not progressing

New 3FE Build Primary School- former Grange school site

20 Expected underspend on final

account

2YO - Phase 2- Ladybirds Nursery 11 Underspend on completed scheme

Beal Vale School - Fencing 10 Underspend on completed scheme

2YO - Phase 2- Fitton Hill Neighbourhood Centre

6

Underspend on completed scheme

Backlog Maintenance- Phase 2- Pinch Farm footbridge- removal

5


BSF - Former Our Lady’s 2 Underspend on completed scheme

2 YO - Phase 2- ARC Community Centre

2


2YO - Giggle & Grow- extension 1 Underspend on completed scheme

Autism Way Forward 1 Underspend on completed scheme

Warm Homes - Solid Wall Insulation Crossley Estate

1


TOTAL EXPENDITURE IDENTIFIED FOR REMOVAL/REALLOCTION

2,055

150

Transfer to Funds yet to be Allocated (203) 0 Reassigned budgets from above

TOTAL EXPENDITURE REMOVED FROM THE PROGRAMME

1,852

150

APPENDIX C SUMMARY – Corporate and Commercial Services – Month 6

Service area

Revised Budget

(M03) £000

Approved Changes

/Virements £000

Proposed Virement

£000

Revised Budget

(M06) £000

Forecast £000

Year End Variance

£000

Corporate 0 274 0 274 274 0

IT 3,882 0 0 3,882 3,882 0

3,882 274 0 4,156 4,156 0

Major Variances Commentary No variances to report

APPENDIX D SUMMARY – Economy, Skills & Neighbourhoods – Month 6

Service area

Revised Budget

(M03) £000

Approved Changes

/Virements £000

Proposed Virement

£000

Revised Budget

(M06) £000

Forecast £000

Year End Variance

£000

Asset Management - Asset Management 5,833 (246) (725) 4,862 4,862 0

Asset Management - Corporate Premises 39 0 0 39 39 0

Asset Management - Education Premises 3,499 (132) (50) 3,317 3,317 0

Boroughwide Developments 6,615 198 (4,467) 2,346 2,346 0

Building Schools for the Future (BSF) 130 0 (52) 78 78 0

Children, Young People & Families (CYPF) 257 1 (104) 154 154 0

District Partnership - Boroughwide 318 0 (185) 133 133 0

Environment – Countryside 73 0 0 73 73 0

Environment - Playing Fields & Facilities 35 30 (30) 35 35 0

Parks & Playing Fields 269 (30) 0 239 239 0

Public Realm 1,896 0 0 1,896 1,896 0

Schools - General Provision 5,474 (70) (726) 4,678 4,678 0

Schools - Primary 253 98 (221) 130 130 0

Schools - Secondary 0 20 0 20 20 0

Schools - Special 271 0 0 271 271 0

Schools New Build 200 0 0 200 200 0

Strategic Acquisitions 1,016 0 0 1,016 1,016 0

Town Centre Developments 26,624 1 (350) 26,275 26,275 0

Transport - Accident Reduction 1,031 (5) 0 1,026 1,026 0

Transport - Bridges & Structures 2,296 2 0 2,298 2,298 0

Transport - Fleet Management 1,257 (857) 0 400 400 0

Transport - Highway Major Works/Drainage schemes 2,087 (148) 0 1,939 1,939 0

Transport - Metrolink 552 0 0 552 552 0

Transport - Minor Works 2,689 59 0 2,748 2,748 0

Transport - Miscellaneous 599 (2) 0 597 597 0

Service area

Revised Budget

(M03) £000

Approved Changes

/Virements £000

Proposed Virement

£000

Revised Budget

(M06) £000

Forecast £000

Year End Variance

£000

Transport - Street Lighting 164 0 0 164 164 0

Economy, Skills and Neighbourhoods 63,477 (1,082) (6,910) 55,485 55,485 0


APPENDIX E SUMMARY – Health and Wellbeing – Month 6

Service area

Revised Budget

(M03) £000

Approved Changes

/Virements £000

Proposed Virement

£000

Revised Budget

(M06) £000

Forecast £000

Year End Variance

£000

Adult Services 2,596 2 (111) 2,487 2,487 (0)

District Investment Fund 708 (2) (190) 516 516 0

District Partnership - Chadderton 18 0 0 18 18 0

Private Housing – Housing Market Renewal Fund (HMRF) – residual programme 993 (14) (167) 812 812 0

Private Housing 88 1 (1) 88 88 0

4,404 (13) (469) 3,922 3,922 0


APPENDIX F SUMMARY – Housing Revenue Account (HRA) – Month 6

Service area

Revised Budget

(M03) £000

Approved Changes

/Virements £000

Proposed Virement

£000

Revised Budget

(M06) £000

Forecast £000

Year End Variance

£000

Housing Revenue Account 1,426 75 0 1,501 1,501 0

1,426 75 0 1,501 1,501 0


APPENDIX G SUMMARY – Funds Yet To Be Allocated – Month 6

Service area

Revised Budget

(M03) £000

Approved Changes

/Virements £000

Proposed Virement

£000

Revised Budget

(M06) £000

Forecast £000

Year End Variance

£000

Funds Yet to be allocated 4,697 (367) 203 4,533 4,533 0

4,697 (367) 203 4,533 4,533 0


APPENDIX H SUMMARY – In Month Virement – Month 6

EXPENDITURE BUDGETS TO BE REPROFILED AT MONTH 6

2016/17 2017/18 2018/19

Directorate / Scheme £ £ £ Note

Economy and Skills


(60,000) 60,000

Rephasing from 2016/17 to 2017/18 - CP 2016 Annual Review

Building Schools for the Future (50,000) 50,000

Devolved Capital General Provision (705,977) 705,977

Disposal Programme - Pre Sales Expenditure (Corporate Property)

(125,000) 125,000

Disposal Programme - Pre Sales Expenditure (Strategic Regeneration)

(125,000) 125,000

Foxdenton Redevelopment (200,000) 200,000

Greenfield Primary (114,982) 114,982

Granby St Pitch (30,000) 30,000

Greenfield Primary School -temp Kitchen pod and temp classroom

(105,720) 105,720

Hey With Zion Primary School - Electrical rewire (40,000) 40,000

Hollinwood / Langtree Regeneration (1,180,000) 1,180,000

Lancaster Club Site Purchase (800,000) 800,000

District Centre Development (294,544) 294,544

District Centre (900,000) 900,000


(125,000) 125,000

2YO- General provision (83,770)

Remove from 2016/17 - CP 2016 Annual Review

2YO- Phase 2- ARC Community Centre (1,718)

2YO- Phase 2- Fitton Hill Neighbourhood Centre (5,854)

2YO- Phase 2- Ladybirds Nursery (11,315)

2YO-Giggle & Grow- extension (898)

Alexandra Retail Park (350,000) (150,000)

EXPENDITURE BUDGETS TO BE REPROFILED AT MONTH 6

2016/17 2017/18 2018/19

Directorate / Scheme £ £ £ Note


(4,663)


Beal Vale School - Fencing - Essential Condition (10,251)

Civic Centre - CCTV upgrade (89,500)

Former Our Ladys (2,270)

Hobson Street Car Park (320,000)

Lancaster Club Site Purchase (1,000,000)


(20,000)

Southlink (Maple House) - Replacement fire escape. (60,000)


(91,964)

Economy and Skills TOTAL (6,908,428) 4,706,224 0

Health & Wellbeing

Dfg- Boroughwide (109,908) 109,908


DIF - District Partnership (17,886) 17,886

DIF - District Partnership (21,847) 21,847

District Investment Fund (DIF) (150,000) 150,000

Equity Homes Loans (167,328) 167,328

Autism Way Forward (1,200) Remove from 2016/17 - CP 2016 Annual Review

Warm Homes - Solid Wall Insulation Crossley Estate (1,414)

Health & Wellbeing Total (469,583) 466,969 0

Funds yet to be allocated

Funds yet to be allocated 203,403 Realignment to FYBA from 2016/17 - CP 2016 Annual Review

Funds yet to be allocated Total 203,403 0 0

(7,174,607) 5,173,193 0

FINANCING BUDGETS TO BE REPROFILED AT MONTH 6

2016/17 2017/18 2018/19

Fund Source / Scheme £ £ £ Note

Grant & Other


60,000 (60,000)


Devolved Capital General Provision 705,977 (705,977)

Dfg- Boroughwide 109,908 (109,908)

Greenfield Primary 114,982 (114,982)

Granby St Pitch 2,569 (2,569)

Greenfield Primary School -temp Kitchen pod and temp classroom

105,720 (105,720)

Hey With Zion Primary School - Electrical rewire 40,000 (40,000)

Hollinwood / Langtree Regeneration 800,000 (800,000)


125,000 (125,000)

Autism Way Forward 1,200 Remove from 2016/17 - CP 2016 Annual Review

Beal Vale School - Fencing - Essential Condition 3,000

2YO- General provision 83,770

Funding Realignment re CP 2016 Annual Review

2YO- Phase 2- ARC Community Centre 1,718

2YO- Phase 2- Fitton Hill Neighbourhood Centre 5,831

2YO- Phase 2- Ladybirds Nursery 11,315

2YO-Giggle & Grow- extension 898


4,663


Funds yet to be allocated (4,200)

Oldham Town Hall - Capital Investment Programme (135,446)


20,000

Grant & Other Total 2,064,157 (2,064,157) 0


2016/17 2017/18 2018/19


Prudential Borrowing

Building Schools for the Future 50,000 (50,000)


District Investment Fund (DIF) 150,000 (150,000)

Equity Homes Loans 167,328 (167,328)

Foxdenton Redevelopment 47,115 (47,115)


Lancaster Club Site Purchase 800,000 (800,000)

District Centre Development 294,544 (294,544)

District Centre 50,000 (50,000)

2YO- Phase 2- Fitton Hill Neighbourhood Centre 23


Former Our Ladys 2,270

2YO- General provision 83,770

2YO- Phase 2- ARC Community Centre 1,718

2YO- Phase 2- Fitton Hill Neighbourhood Centre 5,831

2YO- Phase 2- Ladybirds Nursery 11,315

2YO-Giggle & Grow- extension 898

Alexandra Retail Park 350,000 150,000


4,663


Civic Centre - CCTV upgrade 42,261

Hobson Street Car Park 320,000

Lancaster Club Site Purchase 1,000,000


20,000

2YO- General provision (83,770)


2YO- Phase 2- ARC Community Centre (1,718)

2YO- Phase 2- Fitton Hill Neighbourhood Centre (5,831)

2YO- Phase 2- Ladybirds Nursery (11,315)

2YO-Giggle & Grow- extension (898)

Alexandra Retail Park (100,000) (150,000)


2016/17 2017/18 2018/19


Equity Homes Loans 150,000



(4,663)

Beal Vale School - Fencing - Essential Condition (7,251)

Civic Centre - CCTV upgrade (42,261)

Oldham Town Hall - Capital Investment Programme 277,707


(20,000)

Prudential Borrowing Total 3,651,812 (1,651,812) 0

Revenue

Warm Homes - Solid Wall Insulation Crossley Estate 1,414 Remove from 2016/17 - CP 2016 Annual Review

Revenue Total 1,414 0 0

Capital Receipts

DIF - District Partnership 17,886 (17,886)


DIF - District Partnership 21,847 (21,847)

Disposal Programme - Pre Sales Expenditure (Corporate Property)

125,000 (125,000)

Disposal Programme - Pre Sales Expenditure (Strategic Regeneration)

125,000 (125,000)

Foxdenton Redevelopment 152,885 (152,885)

Granby St Pitch 27,431 (27,431)


District Centre 850,000 (850,000)


Remove from 2016/17 - CP 2016 Annual Review Southlink (Maple House) - Replacement fire escape. 60,000


91,964


2016/17 2017/18 2018/19


Alexandra Retail Park 100,000 150,000


Equity Homes Loans (150,000)


Funds yet to be allocated (199,203)

Oldham Town Hall - Capital Investment Programme (142,261)

Capital Receipts Total 1,457,224 (1,457,224) 0

7,174,607 (5,173,193) 0

Documents

ANNEXE 2 CAPITAL INVESTMENT PROGRAMME 2016/17 …committees.oldham.gov.uk/documents/s75032/5 Annexe 2 - Q2 Capital... · ANNEXE 2 CAPITAL INVESTMENT PROGRAMME 2016/17 ... The Board