Archived decisions

Hampshire County Council

Executive Member, Policy & Resources Item 8

11 April 2002

Capital Repairs, Revenue Maintenance Budgets 2001/02

Report by the Director of Property, Business and Regulatory Services

Contact: Karen Murray Ext: 7876

1. Summary

1.1 The following decisions are sought:

That approval be given to:

1. The schemes listed in para 2.6 being added to the programme of capital
repairs.

2. Any uncommitted capital balances being carried forward to 2002/03.

2. Reason

2.1 To enable the allocation of resources and completion of programmes in line
with the Strategy for the Built Estate.

3. Other options considered and rejected

3.1 None.

4. Conflicts of interest declared by the decision-maker or a member for
officer consulted

4.1 Not applicable

5. Dispensation granted by the Standards Committee

5.1 Not applicable

6. Reason(s) for the matter being deal with if urgent

6.1 Not applicable

Approved by: ..................................... Date of decision: ...................

Councillor T K Thornber

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Contact: Karen Murray Extension: 7876

1. Summary

1.1 This report provides monitoring information on the use of revenue and Capital repairs and maintenance budgets in 2001/02. It seeks approval to the schemes listed in para 2.6 being added to the programme of capital repairs, and to any uncommitted balances being carried forward to 2002/03.

1.2 The allocation of resources and recommended programmes were agreed by the former Buildings, Grounds and Contracts Panel in line with the Strategy for the Built Estate.

1.3 By the date of the Executive Member meeting the financial year will have closed. The additions and amendments to the programme however require formal approval to allow contracts to be formed.

2. Repair and Maintenance 2001/02

2.1 The levels of budget commitment, after 90% of the financial year are shown below:

· Revenue 84%

· Major Repairs

(formerly Revenue items) 89%


· Traditional Capital Repairs 91%

(replacement of major components)


· New Deal for Schools 31%

2.2 The level of commitment on the revenue budget understates the pressure being experienced on these resources: the final tranche of expenditure on the engineering term maintenance contracts will account for virtually all the

remaining revenue budget. This budget will be fully committed. Managers have, for some months now, been working to tight weekly spending targets to ensure that the budget is not overspent. It is conceivable that the final accounts will show a modest overspending against the Revenue budget. Should this be the case the major repairs budget will be managed accordingly. The purpose of the proposal contained in the later report, to allocate resources from contingencies to the revenue budget is to minimise the risk of these pressures recurring in future. The increasing cost of the term engineering contracts reflects the age of the plant, increasing levels of breakdown and servicing and tender inflation, which are not met by budget growth.

2.3 The level of commitment on locally resourced major and traditional capital repairs is also high at 89% and 91% respectively. While the level of commitment against the New Deal for Schools programmes is relatively low, this is mainly because the allocations were increased by over 90% in late 2001: it is a requirement that this money should be spent by August 2002 and the programme will be implemented to ensure that this is achieved. A formal carry forward approval will be required for any uncommitted resources.
One area of low commitment is on the County Farms estate where schemes have been identified, but unable to progress owing to precautionary restrictions relating to the Foot and Mouth outbreak.

2.4 Commitments are also low on Access Improvements. This is because a programme of access audits is being implemented to ensure that the resulting programme of works is undertaken strategically on the basis of prioritised need.

2.5 The Farms and Access Improvement allocations are likely to account for a carry forward of around £540,000. A further carry forward of £250,000 will also be required for an agreed landlord's contributions to capital schemes in the Education Programme which contain major liabilities. Taking into account these three major areas, and some other relatively minor schemes, it is likely that a carry forward of some £1m will be required in addition to the NDS Condition allocation.

2.6 Formal approval is required for individual capital repair schemes (in the 2001/02 programme) in excess of £10,000 following the last report in December. It is recommended that the following be confirmed as additions to the programmes of capital and major repairs:

· Tiptoe Primary School, Lymington - Renew cess pit and associated drainage

· Lankhills School, Winchester - Structural repairs to boundary wall and renewal of railway fencing

· Hollom Hill Farm - Construction of bungalow

· Essential electrical safety work arising from tests and inspections

· Major roofing repairs

· Redecoration of Homes for Older People

· Orchard Infant School - Recladding

· 49 Cliddesden Road, Basingstoke

3. Conclusion

3.1 The revenue budgets for 2001/02 have been under considerable pressure, and as a result of very tight expenditure management it is envisaged that any overspend will not be significant. The impact of having so much delegated expenditure is also reducing flexibility on non-education projects. Expenditure on capital repair schemes is predominantly programmed, although some carry forward of resources (mainly relating to the late NDS allocations) to 2002/03 will be required.

4. Recommendations

4.1 It is recommended that:

o the schemes listed in paragraph 2.6 be added to the programme of capital repairs

o any uncommitted capital balances be carried forward to 2002/03

Section 100D - Local Government Act 1972 - Background Papers:

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1. Published works.

2. Documents which disclose exempt or confidential information as defined in the Act.

File Location

None.

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