PART 1
(OPEN TO THE PUBLIC)
ITEM NO.11
REPORT OF THE STRATEGIC DIRECTOR OF CUSTOMER AND SUPPORT SERVICES
TO THE BUDGET AND AUDIT SCRUTINY COMMITTEE
ON WEDNESDAY 8th JUNE 2005
TITLE : CAPITAL MONITORING 2005/06
RECOMMENDATION :
Members are requested to note the current position regarding the 2005/06 capital programme.
EXECUTIVE SUMMARY :
The report provides details of the funding of the 2005/06 capital programme and a report on
expenditure to date.
BACKGROUND DOCUMENTS :
(Available for public inspection)
1.
Report to Council 2nd March 2005
2.
Various working papers within the Finance Division
CONTACT OFFICER :
Tony Thompstone 793-2685
E-mail : tony.thompstone@salford.gov.uk
ASSESSMENT OF RISK :
Any increase to the planned programme or reduction to resources included in this report will
require action to be taken to ensure the capital programme for 2005/06 remains fully funded.
SOURCE OF FUNDING :
This report identifies the sources of funding for the 2005/06 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) :
KEY COUNCIL POLICIES : : Budget Strategy
ALL WARDS
REPORT DETAILS
1.
INTRODUCTION
1.1
At the extraordinary meeting of the Council on the 2nd March 2005 members agreed the capital
programme for 2005/06 of £118.171m with assumed internal funding of £35.965m and estimated
external funding of £78.224m, with an overprogramming level of £3.982m.
1.2
This report now advises members of recent developments regarding funding the 2005/06 capital
programme.
2.
2004/05 CAPITAL PROGRAMME
2.1
Members are asked to note the following adjustments to the capital programme and resources:-
Capital Programme and Resources
Programme Resource Surplus/
Level (Shortfall)
£m
Approved capital programme 05/06
Education supported borrowing
adjustment required
£m
118.171
114.189
7.000
(0.002)
0.040
(0.002)
0.040
Social Services
Environmental Services
0.129
0.161
0.129
0.161
Arts and Leisure
0.752
0.752
Customer and Support Services
0.789
0.789
Planning Services
0.278
0.278
2005/06 Monitoring Adjustments
Education supported borrowing
adjustment
Education
Highways
Total
Capital Receipts forecasting adjustment
Shortfall in resources
(2.237)
120.318
121.099
Comments
£m
(3.982)
7.000
Monitoring adjustments
Sustrans contribution to
Tyldesley Loop Linear
Walkway
Monitoring adjustments
Waste performance Grant
and monitoring adjustments
Slippage reported in March
2005 report
Slippage reported in March
2005 report
Slippage reported in March
2005 report
(2.237)Adjustment to forecast for
capital receipts
0.781
2.2
A summary of the revised capital programme by service is attached at Appendix 1 which also
details an analysis of the profiled expenditure to date.
2.3
Appendix 2 shows the latest position on capital receipts and Appendix 3 shows progress with
the capital receipts with a value over £100k expected in the year.
2.4
Members will recall that the capital programme was approved subject to close monitoring of
contractual commitments as they are entered into during the year, to ensure schemes are only
committed when funding is identified. Appendix 4 details tenders for individual contracts
approved up to 25th June 2005 by the appropriate lead member, service director and Lead
Member for Customer and Support Services.
3.
COMMENTS
3.1
The effect of the 2004/05 outturn on the 2005/06 programme is not included but will be reported
at the next meeting.
3.2
The 2005/06 programme show a surplus of resources of £0.781m. This is after adjusting for the
supported borrowing received for Hope High school in 2005/06 but for which the related
expenditure will not occur until 2006/07. In addition the forecast for usable capital receipts in
the year has been reduced because of changes to the asset disposals anticipated in 2005/06.
With then disposals of land at Sidney St, Salford Precinct, Ordsall Lane and Duchy Lane being
removed from the schedule.
3.3
The increases to the 2005/06 programme for Arts and Leisure, Customer and Support Services
and Planning Services are a result of the schemes slipped from the 2004/05 programme in the
March report.
4
EXPENDITURE TO DATE
4.1
Members are asked to note the following summary of actual expenditure against expected
expenditure as at the end of April.
Actual Spend Against Profile to 30 April 2005
Program Expect
me
ed
Spend
to date
£m
£m
Private sector housing
35.119
2.927
Public sector housing
20.000
1.667
Education
15.201
1.267
Highways
13.376
1.115
Social Services
0.672
0.056
Environmental Services
0.831
0.069
Arts and Leisure
7.811
0.651
Customer & support Services
3.302
0.275
Chief Executives
10.344
0.862
Planning Services
13.662
1.139
05/06 Programme Total
120.318 10.028
Actual
Spend to
date
Variance
£m
£m
1.03
0.344
0.275
0.513
0.001
0.001
0.029
0
-0.179
0.029
-1.897
-1.323
-0.992
-0.602
-0.055
-0.068
-0.622
-0.275
-1.041
-1.11
2.043
-7.985
4.2
The forecast for the year is based upon an even split of the programme over the year, this
forecast will be revised following the determination of the 2004/05 outturn on the 2005/06
programme.
5.
RISKS
5.1
The current position with regard to potential areas of risk previously identified in the assumed
level of programme and resources is as follows: -

Usable Capital Receipts – the current capital programme envisages the use of £7.961m of
usable capital receipts. The current estimate for usable capital receipts is £8.742m, which gives
an overall funding surplus of £0.781m. To date £0.726m of the receipts anticipated in 2005/06
have been received. This position will be revised in the light of the 2004/05 outturn, when the
carry forward of capital receipts can be confirmed.

Education will require £7.0m of usable receipts in 2006/07 as return on the supported
borrowing they will not utilise in 2005/06. The 2005/06 capital programme will need sufficient
surplus at year end to meet this requirement.

Cost increases from outstanding Lands Tribunal hearings - The Council is currently involved
with Lands Tribunal hearings yet to be held in respect of land acquisitions at Eccles Town
Centre and the Manchester/Salford Inner Relief Route. Any additional costs over and above
what has been provided in the capital programme and available by way of additional
Government grant would fall to be met from the Council’s own resources.

The Private sector housing programme has an over-programming level of £5.450m. This will
require monitoring in order to ensure that outturn expenditure matches the resources available.

Government grants not being realised. Capital projects which are dependant upon grant support
will not be commissioned unless a grant approval has been received or is confidently expected.
All proposed capital expenditure will be subject to the approval of the Lead Member for
Customer and Support Services.
6.
RECOMMENDATION
6.1
Members are requested to note the current position regarding the 2005/06 capital programme.
A. WESTWOOD
Director of Customer and Support Services