MANSFIELD DISTRICT COUNCIL
Head of Finance, Property and Revenue Services
to
Portfolio Holder for Resources
on
18 July 2014
CAPITAL OUT-TURN REPORT 2013/2014
1.
SUMMARY
1.1
This report identifies the capital expenditure incurred during the 2013/2014
financial year and the way in which it has been funded.
1.2
This report is included on the list of key decisions because it includes changes
to the capital programme for expenditure in excess of £250,000.
2.
RECOMMENDATIONS
Resolved by Portfolio Holder
(i)
That the Fleet budget for 2014/2015 be increased by £19,000 to enable
additional vehicles to be purchased and be financed from the income that has
been received during 2013/2014 from the sale of vehicles.
(ii)
That the Section 106 contribution for Rushpool Farm of £7,420 is included in
the Capital Programme for 2014/2015 and is financed by the contribution.
Recommendation to Council
(iii)
That the method of funding the capital programme 2013/2014 as shown in
paragraph 3.10.1 be approved.
(iv)
That the actual position as at 31 March 2014 in respect of Prudential
Indicators shown in Appendix 2 be noted.
(v)
That net expenditure budget totalling £1,742,000 on the schemes shown in
Appendix 3 be carried forward to the 2014/2015 capital programme along with
the relevant funding £2,078,000 and that £336,000 budget from 2014/2015 be
brought back to finance the 2013/2014 capital programme.
(vi)
That the Housing Revenue Account capital programme budget for 2014/2015
of £3,653,000 be approved.
MANSFIELD DISTRICT COUNCIL
3.
BACKGROUND
3.1
Capital Progress
3.1.1 The Council approved its consolidated Capital programme on 23 January
2013, bringing together existing schemes and new projects which aimed to
help deliver the Council’s priorities.
3.1.2 The major schemes included in the 2013/2014 capital programme continued
to be centred around the re-vitalisation of the district, town centres and
neighbourhoods.
3.1.3 Brief descriptions of what the existing capital programme achieved during
2013/2014 have been set out below:
3.2
Regeneration
3.2.1 Re-development of the Queen’s Head Public House Site –The building has
now achieved practical completion and is available for new tenants. An
intensive marketing campaign has been carried out to promote the new units
with on-going marketing being carried out by commercial Agents. The
commercial agents are Innes England who has been appointed to let the 2
retail and 6 office units with a specialist external marketing package
commissioned, procured and managed by the Council’s Marketing and
Communications team. There is a requirement from the funding body,
European Regional Development Fund, to carry out an evaluation in late
August 2014 of the scheme. Property Services have advised that terms have
been agreed for the letting of 1 office and negotiations are at an advanced
stage for 2 further offices. Enquiries for the 2 retail units are being pursued
and it is hoped to conclude terms in the near future. A carry forward request
for £216,000 into 2014/2015 is required for final scheme costs.
3.2.2 Mansfield Woodhouse Station Gateway – This scheme involving the
redevelopment of land owned by Mansfield District Council adjoining
Mansfield Woodhouse Station has been completed, comprising 6 new office
units aimed at supporting growing businesses and an enhanced public realm
scheme. The building has achieved Building Research Establishment
Environmental Assessment Method (BREEAM) excellent accreditation and
was formally opened by the Mayor on 29 June 2012. Property Services have
advised that four units are now occupied of the six units and the remainder
are being marketed.
3.2.3 The Council received capital grant funding from the Department for
Communities and Local Government (DCLG) for the Mansfield Woodhouse
Station Gateway, the DCLG as part of their audit are stating that the Council
has not met certain conditions in the grant. The Council believes that these
conditions and criteria have been met in accordance with the grant and
current position is that the Council is challenging the DCLG’s decision and
has submitted this to Judicial Review. The Council is still awaiting a decision
as to whether or not the matter will be taken forward.
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3.2.4 The Mansfield Visitor Interchange – The new bus station was officially opened
in March 2013 and is now fully operational including a Spar outlet and café
which is being run as a social enterprise. Work to improve access has been
completed and signage improvements and a shelter for customers at the
nearby taxi rank are also to be installed imminently within the original budget.
Initial figures show an increase in bus usage. Whilst the Council’s revenue
contribution is capped, overall, the net revenue expenditure figures for the first
year of operation are provisionally above target and Nottinghamshire County
Council have put appropriate measures in place.
3.2.5 Buildings at Risk – Key buildings where resources to serve a S54 Urgent
Works Notice may be required currently relate to Hermitage Mill and 2 Dame
Flogan Street. Urgent works to Moorhaigh Farmhouse have been completed
at the owner’s expense following pressure from the Council and the threat of
serving an Urgent Works Notice. Hermitage Mill is a grade II listed former mill
building that is currently vacant and has been sold. The building has
deteriorated significantly due to vandalism but the previous owners Grafton
PLC have undertaken some repairs, however further repairs may be required
in particular to the rear roof to prevent rain ingress. Efforts are now being
made to contact the new owners to set up a dialogue and establish their
intentions for the building.
3.2.6 Despite a meeting with the owners of 2 Dame Flogan Street, a former dye
works building which is in poor condition, only some windows and a door have
been boarded leaving the roof and other windows open allowing the building
to deteriorate. The Portfolio for Economic Regeneration has authorised the
service of an Urgent Works Notice by decision dated 25 March 2014 and
funding from reserves of £38,742 to undertake the works in default of the
leaseholders doing the work and that can be recovered under section 55 of
the Planning (Listed buildings and Conservation areas) Act 1990.
Negotiations with leaseholders are being undertaken following further legal
advice prior to servicing the Notice.
3.2.7 A Building At Risk Survey for the District has been undertaken in 2014 and
the results are due to be presented in the near future. There is however a
sharp increase in the number of building falling into poor condition.
3.2.8 Mansfield General Hospital - When the budget was established for the
Mansfield General Hospital site a protracted Compulsory Purchase Order
(CPO) process was expected which would require the Council to acquire and
then prepare and remediate the land over a three year period. Cash forecast
was built on this timetable and the procurement route. Subsequent site
investigation works and negotiations with the owner resulted in the Council
buying the site in this financial year.
3.2.9 As a consequence of the site being acquired early the Council now has an
immediate requirement to demolish the buildings prior to land remediation.
Projected costs are anticipated to rise by £360,000 beyond the forecast
budget. This is as a result of a detailed asbestos survey which has been
MANSFIELD DISTRICT COUNCIL
completed during the summer, the level of contamination could not have been
anticipated prior to purchase and has been increased as a direct result of
continued vandalism to the site. The current cash flow is now anticipated to be
£2,975,000 in 2013/2014. A report was approved at Council on 29 October
2013, which realigned the budget profile to reflect the current cash flow
requirements and a virement of £360,000 budget was approved to cover the
anticipated rise in costs. The demolition is complete with appropriate
measures put in place to address the protected species. Due to the demolition
works progressing quicker than forecast, £154,000 budget is to be brought
back from 2014/2015 to finance expenditure incurred. A 5% retention figure is
required for the contract that will be paid in 2014/2015.
3.2.10 Grants to Support Innovation – The scheme is fully funded by European
Regional Development Fund under the Ambition programme, grant is drawn
down in arrears and this scheme is demand led from the business community.
The grants drawn for the year was £49,743 with a further £25,479 committed
and waiting draw down.
3.2.11 Business Crime Reduction – The scheme is fully funded by ERDF under the
Ambition programme, grant is drawn down in arrears and this scheme is
demand led from the business community; with £42,118 utilised to date from
grants drawn down. There remains £16,010 grant committed but not drawn
down.
3.3
Section 106
3.3.1 Section 106 capital schemes; these are where developers have made
contributions in light of the developments they have undertaken.
3.3.2 The process for Section 106 projects is that consultation takes place
immediately on receipt of the planning application; this consultation involves
elected Members, friends and residents groups from all wards within the
influence radius of the new development. A number of the Section 106
schemes are time limited; the deadline for each scheme is specified within the
terms and conditions of the Section 106 agreement.
3.3.3 The following Section 106 schemes have been included in the 2013/2014
Capital Programme.
3.3.4 Water Lane, Mansfield – This contribution of £64,000 was restricted to the
provision of football pitches on land at Penniment Farm which is not currently
in the ownership of Mansfield District Council. The applicant has now agreed
to allow the Council to redirect the contribution to football pitches at Bull Farm.
Work has been completed on the levelling of the football pitch and the
installation of the drainage. Quotes are now being acquired for improvements
to the football changing facilities. A contractor has been appointed who is
drawing up plans for the refurbishment of the changing facilities which is still
on-going. The MUGA fencing is now complete with the bow top fence
completed and all the relevant reinstating of disturbed ground complete.
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There is a request to carry forward £32,000 budget into 2014/2015 for ongoing works.
3.3.5 Skegby Lane, Mansfield – During 2010/2011 £79,000 was spent on the
provision of a play area at Seaforth Square. The remaining balance of
£21,000 of the contribution has been allocated to projects at the Hermitage
Lane Nature Reserve (LNR). Consultation with the Friends of Hermitage
Lane Nature Reserve Group and Nottinghamshire Wildlife Trust has not
concluded what improvements need to be carried out. Following further
discussions with the local ward councillor, improvements are to be made to
the LNR entrance off King Lodge Drive by clearing old, overgrown shrubs,
replanting the borders and installing new signage. Repairs/improvements to
the path and pond edge are currently being investigated. This scheme is not
time limited but it is anticipated that the project will commence as part of the
winter works schedules from October 2014 to March 2015. Exact timescales
are not available as it is dependent on gaining permission to undertake works
close to the water course and approval from the Environment Agency is
required. There is a request to carry forward budget of £17,000 into
2014/2015 for on-going works.
3.3.6 Crow Hill Rise – £12,120 was planned to be used for landscaping at Carr
Bank Park. Quotes for the plants were gathered and an order had been
placed in September 2013; for delivery and planting to take place in March
2014. This is now complete. Quotes for a retaining wall at the vehicle
entrance to enhance the Bath Lane entrance, have been received. The wall
was an ornamental wall had no retaining benefits, it was considered that the
quote received would not provide the benefit expected and therefore an
alternative scheme has been put in place. The new scheme to grass and bank
up to the side of the entrance is cheaper and will be more aesthetically
pleasing. This will be completed as part of the winter works schedule, and will
commence in October 2014. The exotic plant display in the glasshouse has
now been completed and a new community orchard has been planted. Four
permanent metal tennis court nets have been installed at the site. New
landscaping and planting to enhance the Bath Lane entrance, is now
completed. This is to the opposite side of the impending work which will
commence in October 2014. There is a request to carry forward budget of
£3,000 into 2014/2015 for on-going works.
3.3.7 Sainsbury’s CCTV – This is a new scheme supporting the new
Sainsbury’s/Aldi development which opened on Nottingham Road during
2012. The total sum of £51,000 was received from Sainsbury’s as a section
106 contribution for the installation and maintenance costs of a CCTV
camera. The contribution consists of a £21,000 capital contribution towards
the purchasing and installation of the CCTV camera and a £30,000 revenue
contribution towards the maintenance and monitoring costs over a five year
period. All civil works have been completed and the column is in place. The
fibre link was completed March 2013 and the camera has now been installed.
The camera went live at the end of August 2013. The capital spend to date on
the project is £17,580. This has not changed since the last report. The money
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left in the budget is still to be spent. There is a request to carry forward budget
of £3,000 into 2014/2015 for on-going works.
3.3.8 Sherwood Street - £15,000. This contribution has been spent on two sets of
swings and play surface, at Carr Lane Park and at the Carrs Park, this
scheme is now completed and no budget carry-forward will be required.
3.3.9 Black Scotch Lane - £12,000. This is a new scheme with the contribution to
be spent on the King George V Park, the work included car park
improvements and the installation of bins and benches. This project was
completed in March 2014.
3.3.10 Toothill Lane - £6,000. This element was to be spent on ornamental planting,
shrub beds and recreational enhancements to Titchfield Park. The ornamental
planting around petanque piste is complete and new permanent planting was
completed in March 2014. No budget carry forward will be required.
3.3.11 Kings Walk – This scheme was originally approved at £220,180, but due to a
reduced number of dwellings to be built on the site following the planning
process the revised contribution for the Section 106 was £195,940. A carry
forward of budget for the full £195,940 was approved in the December 2013
report and moved into 2014/2015 as the Council is in the process of adopting
the remaining Berry Hill Quarry open space.
3.4
Leisure and Cultural Services
3.4.1 Meden Sports Centre – This scheme is to enable essential repair works to be
undertaken at Meden Sports Centre. Initial priority work was undertaken
which included the refurbishment of the multi-purpose room, some electrical
works, lightening protection and asbestos removal. However, given that
Mansfield District Council is not wholly responsible for the maintenance and
repair of the building, no further remedial work has been completed pending
completion of the negotiations concerning the future legal agreement for
Meden Sports Centre. The legal agreement is now in place and discussions
are progressing between the district and county officers with respect to the
required work. There is a request to carry forward budget of £41,000 into
2014/2015 as this will be required in light of the scale of the asset liabilities.
3.4.2 The Rebecca Adlington Swimming Centre – The account for this project is
finalised and there will be no further costs. Please note that £50,000 was vired
from this scheme to support the General Hospital approved at Council on 29
October 2013.
3.4.3 Rainworth Open Space Play Area – Following a public consultation held onsite in April 2013, play companies were invited to tender for the new scheme.
The Company Play and Leisure was awarded the contract and work began on
site in September 2013. The new play area is now complete and the official
opening and photo shoot took place on 15 October 2013.
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3.4.4 Manor Park Play Area – A public consultation was held on-site at the end of
June 2013. Tender documents have been prepared and were sent out in
October 2013. Scheme and supplier have been chosen following consultation
with local ward councillors. The contract was awarded in January 2014 with
installation completed by February 2014. The project was completed on time.
3.4.5 Oak Tree Play Area – Consultation has taken place by the local Ward
Councillor and residents. Tender documents have been prepared and were
sent out in October 2013. Scheme and supplier have chosen following
consultation with local ward councillors. The contract was awarded in January
2014 with installation completed in February 2014. The project was completed
on time.
3.4.6 Changing provision at Water Meadows – Phase 1 of the new changing area
works was completed in November 2013. Phase 2, refurbishment of original
changing area/first phase was completed in December 2013 and phase 3
refurbishment of original changing area/second stage was completed in
February 2014. The project is completed.
3.5
Resources
3.5.1 Fleet – The replacement programme for 2013/2014 is on track with the Fleet
Manager working with each service to review their requirements with the aim
of downsizing vehicle specifications and to ensure that service areas get a
vehicle which is both fit for purpose and affordable. Ten vehicles, one bin lift
and ten items of plant equipment have been purchased in 2013/2014 totalling
£691,459. The ten vehicles included two refuse vehicles which were ordered
before the cut-off date of January 2014; this was to ensure that we did not
incur an annual increase from the manufacturer which would have been in
place from 1 January 2014.
3.5.2 ICT Future Developments – On 11 July 2011 Cabinet amended the Capital
Programme by £222,900 to include a scheme to upgrade the ICT software.
The major development which the budget will be invested in is the Virtual
Desktop Infrastructure (VDI) which will create flexibility within the workplace.
Users with VDI will be able to login to any workstation and have access to
their full application suite and elected Members will have full access to data,
email and systems rather than just email. A report has been presented to
Corporate Management Team to gain approval for the roll out of VDI
throughout the Council where suitable following the successful proof of
concept which has been completed. Analysis is that users are very happy with
their new units and the issues with those placed have been mainly associated
with the new Windows 7 operating system and Office 2010 which will be
implemented over the next two years regardless of VDI. The project is
progressing with 60% of workstations completed.
3.5.3 Fire and Emergency Lighting Works – This project involves upgrading the
current fire alarm system which is now obsolete, and installing additional
emergency lighting to ensure that it meets current legislation. Specifications
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and contract documents are currently being prepared by Design Services.
Work will continue into 2014/2015. As works started earlier than anticipated in
2013/2014 £4,000 but will be brought back from 2014/2015 to finance
expenditure incurred.
3.5.4 Air Conditioning Essential Works – This project is for the replacement of the
condensers for the air conditioning system following changes in legislation
which will mean that the gas for the current system will be unobtainable and
the system will not work with any of the other gases that are available.
Specifications and contract documents are currently being prepared by
Design Services. This project is currently on hold.
3.5.5 On the 19 June 2014 the Corporate Director of Housing and Environment
approved the carbon reduction scheme of £323,000 for the Civic Centre
Heating project; this will be financed from the Council’s Energy Efficiency
reserve.
3.5.6 Property acquisition – The Kings Mill Way property, now known as Premier
Court, was purchased in January 2013 for £340,000 plus fees. In addition to
minor refurbishment works of £26,300, further internal electrical and plumbing
works are currently being undertaken in order to accommodate a new letting
of Units 1 and 4 with effect from 7 October 2013. The capital scheme has
been completed with the current works being funded from Planned
Preventative Works reserve. Property Services have advised that Premier
Court is now 50% occupied with the remaining unit being marketed.
3.5.7 Potential acquisition of commercial property within the United Kingdom –
Property Services acquired, on behalf of the Council, a commercial property in
Edinburgh for £7.65 Million plus costs on 26 th March 2014. This investment
property produces an income stream of £546,258 per annum in support of the
Council’s revenue budget. There is a request to carry forward budget of
£12,000 into 2014/2015 for outstanding external valuation advice costs.
3.6 Urban Housing Regeneration
3.6.1 The 2013/2014 urban housing regeneration programme is split into two main
parts being regeneration schemes and individual financial assistance
schemes.
3.6.2 The regeneration schemes tackled poor housing conditions and provided
uplift to the neighbourhoods. These schemes are now complete, apart from
the collection of historic contributions due from participating property owners
who were assessed at the time as being able to afford to do so and for
remedial works which have been brought to the Council’s attention resultant
from the contribution collection process. The locations where this is on-going
are Warsop Vale, Mansfield Woodhouse and Mansfield (Newgate Lane area).
3.6.3 Newgate Lane – In respect of historic work, of the 16 properties where owners
have indicated that there may be remedial issues which need to be addressed
all have now been resolved. There are also three properties owned by the
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same landlord that require retrospective building control regularisation for
window replacements. Building Control has attempted to gain access for this
purpose but no contact has been received from the owner. Further access
attempts to be made. In the previous quarterly report, £74,000 budget was
carried forward to 2014/2015; however there was a requirement to vire
£25,000 budget to the Warsop Remedial Works scheme. This resulted in a
budget shortfall on the Newgate Lane scheme of £26,000 in 2013/2014, so
budget will be brought back from 2014/2015.
3.6.4 Mansfield Woodhouse – All remedial work is now complete. However, we
have recently received a new enquiry from the landlord of a property
completed in 2010 regarding dampness and debris in flues. Investigation work
is currently being organised and an order will be raised in 2014/2015
accordingly. There is a request to carry forward budget of £1,000 into
2014/2015 for on-going works.
3.6.5 Warsop Vale – To date, there are 26 properties within Warsop Vale where
owners indicated that there may be remedial issues which need to be
addressed. Of these, 15 have been completed with 11 properties where
remedial investigations/work are on-going (2 of these complaints were
received at the beginning of 2014/2015). There is a request to carry forward
budget of £39,000 into 2014/2015 for on-going works.
3.6.6 Redevelopment and regeneration of Pleasley Hill. The demolition was
completed in 2012 and after protracted negotiations and compilation of a
conditional sale agreement, the sale price has been agreed and the terms
have been finalised. The developer has now submitted a planning application
for the site. Costs for the purchase of a strip of land and fouled sewer works
were completed earlier than forecast; budget of £42,000 is to be brought back
form 2014/2015.
3.6.7 There are a number of individual financial assistance schemes; these assist
vulnerable households in the following ways:





Housing Renovation/Decent Homes Grants
Affordable warmth
Handyperson scheme
Disabled Facilities Grants
Private Sector Housing Assistance
3.6.8 House Renovation / Decent Homes Grants – This scheme provided financial
assistance to make the homes of vulnerable owner-occupiers decent. The
Council is no longer providing Decent Homes grants. Decent Homes Loans
have replaced these grants (see section 3.6.13). The Council are currently
monitoring a potential penetrating dampness issue at a previously completed
property with the possibility of additional minor remedial works. There is a
request to carry forward budget of £2,000 into 2014/2015 for on-going works.
3.6.9 Affordable warmth – The Affordable Warmth budget is being used to provide
replacement boilers for vulnerable people where the boilers are old and
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inefficient. Together with external grant funding, the Council has provided
grant assistance for:



14 new boilers/heating systems
6 loft insulations
1 cavity wall insulation
A further 4 cases are being processed with a view to providing affordable
warmth assistance for replacement heating systems are will be approved
upon receipt of quotations. There is a request to carry forward budget of
£7,000 into 2014/2015 for on-going works.
The capital spend is just one part of a wider remit delivered by the temporary
Affordable Warmth Officer. Since December 2012 he has carried out 92 home
visits and energy efficiency assessments and since August 2013 has
responded to circa 133 telephone enquiries and drop-in enquiries. The
Affordable Warmth Officer offers energy efficiency and other advice to
customers over the phone and face to face to help them achieve affordable
warmth and also provide advice on fuel switching schemes where
appropriate.
3.6.10 Handyperson and Preventative Adaptations Service scheme – The service is
designed to carry out jobs for householders that reduce the risk of falling or to
help people to remain living independently in their own home. The service
provides two types of assistance – adaptations and handyperson jobs for
people who are aged 60 years or over or has a disability and is resident within
the County. The service is run by Nottinghamshire County Council and is part
funded by the County Council and all district and borough Councils within the
County. During 2013/2014 the service has delivered 75 handyperson jobs (of
which 13 were hospital discharge cases) and 508 adaptations (of which 208
were hospital discharges). There is a request to carry forward budget of
£1,000 into 2014/2015 for on-going works.
3.6.11 Disabled Facilities Grant (DFGs) – These grants are provided in the private
sector to adapt the home of a disabled occupant so that it meets their needs.
It can include adaptations, such as the provision of a stair lift and the removal
of a bath and its replacement with a level access shower. 48 grants were
completed during 2013/2014 with an additional 17 cases approved and ongoing and 47 cases were being dealt with by officers with a view to being
approved. There was no waiting list for DFG’s during 2013/2014. Cases are
dealt with in date order and are released to surveyors as soon as referrals are
received from Occupational Therapy. Spend during 2013/2014 totalled
£263,569 with an additional £317,381 of on-going commitments
(approved/on-going cases). There is a request to carry forward budget of
£303,000 into 2014/2015 for on-going works.
3.6.12 Discretionary DFGs -The Council approved an amended DFG Policy recently
to introduce discretionary DFGs in the private sector for level access bathing
facilities. Where clients’ bathing needs is assessed as ‘moderate’ by
Occupational Therapy they will not be eligible for social care help and will
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therefore not be referred to the Council for a mandatory DFG. Discretionary
DFGs will be offered to these clients, subject to a means test and satisfying
eligibility criteria, for providing level access showers or shower trays.
Discretionary cases will be offered subject to the availability of funding. The
Council received 15 discretionary referrals during 2013/2014 of which 5 have
been cancelled as a result of the means test. The remaining 10 cases were
being processed by officers prior to approval stage at the end of the financial
year.
3.6.13 Decent Homes Loan Scheme – On 26 July 2011 Council approved the
acceptance of £200,000 government funding for the Decent Homes Loan
Scheme. The Decent Homes Loan Policy has been produced and was
approved by Council on 4 July 2012. The purpose of a Decent Homes Loan
is to help improve owner occupied non-decent homes moving them towards
achieving the government decent homes standard. Loans will be interest free
and 100% recoverable through a charge when a property is sold. A total of
£200,000 has been received from Nottingham City Council for the purpose of
providing loan assistance. We have responded to all loan enquiries to date
and surveyors are currently dealing with 11 active cases where clients wish to
pursue a loan application. 4 of these cases have now been referred to legal
services for a charge deed to be prepared and signed by the client prior to a
charge being placed on the property and the loan being approved. 6 of these
cases are at the application stage i.e. clients have received quotes and are
completing application forms and obtaining permission from mortgage
providers etc. prior to the cases being referred to legal for a charge deed to be
prepared and sent to the client. 1 case is at the property assessment stage. It
is proposed that during 2014/2015 a new affordable warmth loan will be
introduced to improve heating systems to private properties as part of the
district heating scheme on Sandy Lane. The remainder of the loan budget can
be used for this purpose.
3.7
Housing Revenue Account (HRA)
3.7.1 On 30 March 2011 a Delegated Decision was approved by the Portfolio
Holder for Housing to allocate the Housing Revenue Account capital budget to
improvements to Council dwellings over the next four years. This will ensure
that the Council Housing stock will continue to comply with the decent homes
minimum standard. The following schemes were approved:





Bathroom Replacement Programme
Kitchen Replacement Programme
District Heating Replacement
Environmental Improvements
Contract Management.
3.7.2 Bathroom Replacement Programme – As part of the Bathroom Replacement
Programme a total of 3,449 properties were completed by the end of March
2014. During the next quarter work will continue in the Mansfield North area,
Ladybrook and Central Mansfield. In addition work to continue in all areas to
properties that have recessed showers. The project is nearing completion
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which is anticipated to be July/August. There is a request to carry forward
budget of £84,000 into 2014/2015 for on-going works.
3.7.3 Kitchen Replacement Programme – As part of the Kitchen Replacement
Programme a total of 726 properties were completed by the end of March
2014. During next quarter work will continue to be undertaken in the Mansfield
North area, with a further 70 kitchens expected to be completed. The project
is nearing completion which is anticipated to be June/July. There is a request
to carry forward budget of £228,000 into 2014/2015 for on-going works.
3.7.4 District Heating Replacement – During 2012/2013 the main project was the
replacement of the district heating system on the Oak Tree Lane estate. 50%
of properties with district heating have now been replaced with individual
heating systems. The next project is the replacement of the coal-fired district
heating system at The Willows and River View at Warsop. The laying of the
gas pipes is now complete and meter boxes have been installed. The next
stage is to undertake the individual central heating installations in each of the
properties. This work is currently being packaged in preparation for the
tendering process. The Invitation to Tender documents were sent out midMay 2014. The work programme will be linked to the bedsit conversions as
detailed in paragraph 3.7.6. Gas pipe work installation was completed in
December 2013. Work to carry out the district heating replacement (in
conjunction with the bedsit conversions on site) is included in the tender, with
an aim to complete the conversion work in 2014. A new heating system has
been installed in one of the Riverview flats that became void. This property is
also having a kitchen installed and will become a show flat for tenants to visit.
There is a request to carry forward budget of £296,000 into 2014/2015 for ongoing works.
3.7.5 Special Projects – An improvement area identified under the estate
assessments, undertaken by the Housing Officers was the condition of the
stairwells in the Charlesworth Court flats on Peafield Lane. This has now
been forwarded to Design Services for costing, with the expectation that the
work will be undertaken during the summer of 2014. There is a request to
carry forward budget of £42,000 into 2014/2015 for on-going works.
3.7.6 Bed Conversions – This budget is for the conversion of bedsits to flats at The
Willows in Warsop. This project is to be linked to the replacement of the
district heating system, as detailed in paragraph 3.7.4. Conversion designs
have been approved, drawing completed and tender documentation is
currently being finalised. Anticipated date for Invitation to Tender is 23 rd May.
There is a request to carry forward budget of £100,000 into 2014/2015 for ongoing works.
3.7.7 Electrical Upgrades – This budget has been allocated for electrical upgrades
at Tideswell Court and Stonecross Court. The work at both sites is now
complete. The next project, utilising the balance from this budget, is the
upgrade of electrics at the Beech Court complex. There is a request to carry
forward budget of £49,000 into 2014/2015 for on-going works.
MANSFIELD DISTRICT COUNCIL
3.7.8 Contract Management – This budget relates to expenditure incurred in the
managing of contracts and surveying duties. Due to higher than anticipated
costs incurred for Design Service works budget of £17,000 is to be brought
back from 2014/2015.
3.7.9 Housing IT System – This scheme is to replace the Housing IT System due to
both the age of the system and the significant future maintenance risk
associated with the existing system which is UNIX based. The new system
will ensure that the Housing Service can be delivered on a first point of
contact basis and will also allow for mobile working. The procurement phase
was concluded in August 2013, with the contract being awarded to Aareon UK
Ltd. The implementation phase is now well underway. Unfortunately, the golive date for the first phase needed to be postponed and is now expected to
be on 30 June 2014. There is a request to carry forward budget of £126,000
into 2014/2015 for on-going works.
3.7.10 Council House Adaptations (CHA’s) – In terms of major adaptations costing
over £1,000, this scheme is demand led. 140 cases have been completed
during 2013/2014 (24 of which were carried out via the capital works
programme). 28 cases were approved and on-going and 25 cases were
released to officers pending approval. Cases have been dealt with in date
order on receipt of referral from OT. At the end of the financial year there were
30 cases on a waiting list pending processing as a result of full budget
commitment.
2013/2014 spend totalled £560,071 plus on-going
commitments (approved/on-going cases) of £210,016. Adaptations were
completed earlier than forecast, so budget of £32,000 is to be brought back
form 2014/2015.
3.7.11 Mount Pleasant Empty Homes – This project has a budget of £534,000 and
involves targeting the purchase of empty properties in the Mount Pleasant
area of Warsop. Six properties have been purchased and all six have been
refurbished and let. An additional purchase/refurbishment was included earlier
than forecast, so budget of £23,000 is to be brought back.
3.7.12 Victoria Court Flats – This scheme is for the acquisition and demolition of six
blocks of flats at Victoria Court and the adjacent undeveloped land to enable a
comprehensive housing development scheme to be brought forward which
will also include making use of the adjoining Council owned land. The
acquisition of the flats is on-going. £1,000 budget is to be brought back from
2014/2015 to finance a small over-spend on this scheme in 2013/2014.
3.7.13 Bonington Road New Build Scheme – This is a scheme for the development
of two bedroom bungalows (of which one is wheelchair accessible) which will
remain in the ownership of Mansfield District Council. The scheme has been
tendered twice and both tender returns were higher than the budget. Officers
think this may be because the scheme although small was quite complex with
requirements for hemp construction, PV panels and rainwater harvesting. The
scheme has now been simplified and is being tendered in May (with
expressions of interest having been invited at the beginning of May). There is
MANSFIELD DISTRICT COUNCIL
a request to carry forward budget of £1,000 into 2014/2015 for on-going
works.
3.7.14 Flint Avenue New Build Scheme – This is a revised scheme of 15 x 2
bedroom and 1 x 1 bungalows of which four will be wheelchair accessible.
The scheme was approved by Council on 22 January 2014 for inclusion in the
capital programme for 2014/2015. The scheme has been submitted for
planning permission and the application will be determined on 6 May 2014.
Due to costs incurred earlier than forecast for planning fees, building
regulations and specialist fees, budget of £6,000 is to be brought back from
2014/2015.
3.7.15 Brownlow Road Extra Care Scheme - With respect to the redevelopment and
regeneration of the Brownlow Road area members will be aware that the
Council has been awarded a grant to develop an extra care scheme. The
acceptance of the grant was approved at Council on 22 January 2014 and the
funding agreement with the Homes and Communities Agency was
subsequently signed on 4 February 2014. The scheme is now out to tender
through the Home and Communities Agency framework (Delivery Partner
Panel 2). Nine contractors expressed an interest in the scheme (on a
construction only basis) although only eight returned a sifting brief
questionnaire. This questionnaire is used to shortlist the contractors
expressing an interest based on their response to qualitative questions. As a
result, five contractors were invited to tender however one has withdrawn part
way through the process. Tender returns are expected by 19 May 2014. The
scheme remains on target to start on site at the end of August 2014. There is
a request to carry forward budget of £30,000 into 2014/2015 for on-going
works.
3.7.16 2012/2015 Empty Homes Programme Round 2 – This scheme was approved
at Council on 30 July 2013, and is for bringing empty private sector residential
properties back into use. This scheme looks to identify willing owners from
whom the Council can buy their properties. Currently the Council is
negotiating the purchase of six properties which will be refurbished with a
view of letting five of them and trying to sell the other for shared ownership.
3.7.17 Further New Build Opportunities – On 29 April 2014, the Corporate Director
Housing and Environment approved a report recommending the submission
of an application to the Homes and Communities Agency for grant funding
under the newly launched Affordable Homes Programme 2015 – 2018. A bid
was submitted seeking funding of £636,000 for the development of 12 family
houses at a garage site on Pye Avenue, Mansfield and for 20 units adjacent
to the extra care scheme at Brownlow Road. The announcement is expected
in July 2014. If the Council is successful in its bid, further reports will be
brought to members to approve the acceptance of the grant and the
amendment of the Housing Revenue Account capital programme.
3.7.18 For 2014/2015 the Housing Revenue Account capital programme budget of
£3,653,000 be allocated.
MANSFIELD DISTRICT COUNCIL
3.8.1 During 2013/2014, expenditure incurred by the Council on capital projects
totalled £20.14million. This was split between the General Fund and Housing
Revenue Account as follows:
General Fund
Housing Revenue Account
Total
Latest Approved Expenditure Variation
Budget
£’000
£’000
£’000
16,004
15,071
933
5,926
5,069
857
21,930
20,140
1,790
3.8.2 As can be seen there has been an overall variance from the latest approved
revised capital programme (Council 4 March 2014) of £1,790,000 (8.16%).
Appendix 1 provides a more detailed breakdown of the financial position of
the capital programme and Appendix 3 provides explanations on the major
variances.
3.9 PRUDENTIAL INDICATORS
3.9.1 On 5 March 2013, Council was requested to approve Prudential Indicators for
the next 3 financial years as part of the Treasury Management Strategy
(Agenda item 13/23). These indicators had been established in accordance
with the Chartered Institute of Public Financial Accountancy’s (CIPFA)
Prudential Code for Capital Finance in Local Authorities and are a measure of
the authority’s ability



to manage its capital programme;
to finance (long term) its capital programme;
to manage efficiently its treasury management function.
3.9.2 On 5 March 2013, Council approved the Prudential Indicators, including the
Operational Borrowing level and the Authorised Borrowing level.
3.9.3 Progress on three of the indicators (Authorised Limit, Operational Boundary
and capital expenditure) has been reported to Select Commission 3 as part of
the quarterly capital progress reports. Appendix 2 shows the final out-turn
against the indicators that were approved by Council.
3.9.4 The Council remained well within its overall authorised limit and remained in
line with its operational limit. The Council remained well within all of its
treasury management limits.
3.9.5 During 2013/2014 the Council internally borrowed a total of £212,000 towards
the Housing new build projects at Bellamy Road, the purchase of the building
on Kings Mill Way and the General Hospital in line with the approved
financing of these schemes. This has been reflected in the Capital Financing
Requirement.
MANSFIELD DISTRICT COUNCIL
3.10 FUNDING
3.10.1 Expenditure has been funded to maximise the income and benefits to the
Council, including minimising calls on the revenue account and future
liabilities. The funding proposals are shown below:
Useable Capital Receipts
Grants and Contributions
Major Repairs Reserve
Contribution from Revenue
Borrowing
Earmarked Reserves
Total
4
General Fund
£’000
11,326
1,408
0
1,898
151
288
15,071
HRA
£’000
0
87
4,715
0
61
206
5,069
Total
£’000
11,326
1,495
4,715
1,898
212
494
20,140
OPTIONS AVAILABLE
4.1.1 To carry forward budgets as requested to 2014/2015 to enable existing
schemes to be completed. This is the preferred option.
5.
RISK ASSESSMENT OF RECOMMENDATIONS AND OPTIONS
Risk
Risk Assessment
Risk
Level
Risk Management
MANSFIELD DISTRICT COUNCIL
Financial
Project and
financial
management
Reputation
Council’s aims
and objectives
Significant over or under
spends could impact on
the ability of the Council
to manage its projects
and finances.
Medium The Council’s set up
Project Board’s to
assess the impact of
any changes at its
meetings and report
any issues arising.
When schemes are not
progressing in line with
the approved capital
programme there is a
risk that the Council will
not achieve its stated
aims and objectives in
the corporate plan.
High
Project Board to
assess the impact of
any changes at its
meetings and report
any issues arising.
6.
ALIGNMENT TO COUNCIL PRIORITIES
6.1
The management of major capital projects is vital in delivering the Council’s
priorities.
7.
IMPLICATIONS
(a)
Relevant Legislation: The Council’s capital programme adheres to the
following legislation:
 Local Government Act 1972
 Local Government Finance Act 1972
 Local Government Finance Act 1988
 Local Government and Housing Act 1989
 The Local Authorities (Capital Finance and Accounting)(England)
Regulations 2003
(b)
Human Rights: No impact.
(c)
Equality and Diversity: No impact.
(d)
Climate change and environmental sustainability: The capital programme
contains schemes which are designed to reduce the Council’s carbon
footprint as well as reducing CO2 emissions across the district. The
proposed amendments will not adversely affect the Council’s impact on
carbon reduction
(e)
Crime and Disorder: No impact.
(f)
Budget / Resources: This report is to note the out-turn position on the
capital programme for 2013/2014 and to approve the carry forward of
under spent budget into 2014/2015.
MANSFIELD DISTRICT COUNCIL
8.
COMMENTS OF STATUTORY OFFICERS
Head of Paid Service – No specific comments
Section 151 Officer – The financial aspects of the Capital Programme have
been set out within the detail of this report, there are no specific comments.
Monitoring Officer – No specific comments
9.
CONSULTATION
In addition to the above, Heads of Services have provided comments on the
major variances in the capital programme see Appendix 3.
This report has been to Select Commission 3 on 8 July 2014.
10.
BACKGROUND PAPERS
Information is provided by the relevant project officers and held in the
Financial Services Section of the Finance Property and Revenue Services
Section.
Report Author
Designation
Telephone
Email
- Claire Haynes
- Corporate Accountancy Manager
- 01623 463495
- chaynes@mansfield.gov.uk
Appendix 1
MANSFIELD DISTRICT COUNCIL
2013/2014 out-turn
expenditure
for
schemes
total
all
Net
amount to
be c/fwd
£’000
Under /
Overspend (-)
2013/2014
budget
£’000
5,355
5,127
228
219
758
738
6,851
609
396
6,132
149
342
719
120
342
681
10
0
10
10
10
0
10
10
OTHER
Town Centre, Reception and
Contact Centre
Resources
Sub-total on other
5
9,138
9,143
5
8,934
8,939
0
204
204
0
173
173
HOUSING
Housing Revenue Account
New Build Schemes
Sub-total on housing
5,773
153
5,926
4,942
127
5,069
831
26
857
852
26
878
21,930
20,140
*1,790
*1,742
REGENERATION AND
EMPLOYMENT
Regeneration and
Neighbourhood Management
Leisure and Cultural Services
Urban Housing Regeneration
Sub-total on regeneration
and employment
CRIME
Environmental and
Regulatory Services
Sub-total on crime
TOTAL
2013/2014
latest
approved
budget
£’000
2013/2014
expenditure
£’000
* Difference of £48,000 between total under spend (£1,790,000) and balance carried
forward (£1,742,000) see note 2
NOTES
MANSFIELD DISTRICT COUNCIL
1.
Reconciliation of 2013/2014 budget is:
£’000
21,834
76
2013/2014 budget (approved by Council 4 March 2014)
Virement from revenue to capital to support the Vale Road /
Hermitage Lane Depot merge
Virement from revenue to capital to support the HR office move and
the installations of the kitchens at the Civic Centre
Virement from revenue to capital to support the CCTV capital scheme
Latest approved spend to 31 March 2014
2.
10
10
21,930
Difference between under spend and carry forward - £48,000
The following table shows the breakdown for the difference between the under
spend of £1,790,000 and the carry forward of £1,742,000
Amount
£’000
30
Contribution by Nottinghamshire County Council was included on the
Manor Park Pay Area budget, this was paid by NCC directly to the
scheme and was not incurred through the Council
Saving on Rainworth Open Space Play Facility
Budget not required on the New Commercial Property Acquisition
Expenditure not budgeted for on the payment to Homes Communities
and Agency (HCA) on the receipt received from the sale of Millennium
Business Park
Council house sales expenditure not budgeted for
Other reconciling items
3
166
-133
-22
4
48
Of the £48,000 above £4,000 is to be used to finance the overspend on the
Stockwell Gate North Demolition
Appendix 2
MANSFIELD DISTRICT COUNCIL
Prudential Indicators for 2013/2014
External debt
indicators
and
capital
expenditure
Target
£’000
Actual
£’000
Capital Expenditure
Non-HRA
16,004
15,071
HRA
5,926
5,069
Total
21,930
20,140
Non-HRA
-1.78%
-1.90%
HRA
13.60%
12.65%
95,050
94,845
105,380
105,386
10,330
10,541
-410
-406
HRA
0
0
Total
-410
-406
Non-HRA
15,740
15,806
HRA
89,640
89,580
Total
105,380
105,386
Ratio of financing costs to net revenue stream
Under / (Over) Borrowing position
Gross debt at 31 March
Capital Financing Requirement
Under / (Over) Borrowed
In year Capital Financing Requirement
Non-HRA
Capital Financing Requirement as at 31 March
MANSFIELD DISTRICT COUNCIL
Revised
Treasury Management indicators
Actual
Target
£’000
£’000
Authorised limit for external debt
Borrowing
135,000
94,814
17
17
135,017
94,831
127,000
94,814
17
17
127,017
94,831
100%
100%
20%
0%
Upper limit for total principal sums invested for over 364
days
£10 million
Other long term liabilities
Total
Operational Boundary for external debt
Borrowing
Other long term liabilities
Total
Upper limit for fixed interest rate exposure
Net principle re fixed rate borrowing/
investments
Upper limit for variable rate exposure
Net principle re variable rate borrowing/
investments
Maturity structure of fixed rate borrowing during 2013/2014
Upper
limit
Lower
limit
Target
Target
Actual
Under 12 months
20%
0%
5.33
12 months and within 24 months
20%
0%
4.81
24 months and within 5 years
50%
0%
11.68
5 years and within 10 years
60%
0%
31.38
10 years and above
80%
0%
46.80