Archived decisions
Appendix 9
Capital spending and financing 2004/05
1 Capital expenditure
1.1 Table 1 below shows that over 86% of the capital programme for 2004/05 was started in the year. It also shows the value of schemes for which approval to carry forward to 2005/06 is requested, together with the associated cash limit.
Table 1 - Capital schemes started in 2004/05 | ||
£000 |
% | |
Approved value of the capital programme for 2004/05 |
167,847 |
100.0% |
|
||
Schemes started in 2004/05 |
144,737 |
86.2% |
----------- |
--------- | |
Balance of cash limit at 31 March 2005 |
23,110 |
13.8% |
----------- |
--------- | |
Schemes for which approval to carry forward to 2005/06 |
||
is requested |
12,740 |
|
Schemes already approved for carry forward |
7,206 |
|
Balance of cash limit remaining to meet inflation costs |
3,164 |
|
----------- |
||
Cash limit to be carried forward to 2005/06 |
23,110 |
|
----------- |
||
1.2 The majority of the capital programme is controlled on a `starts' basis in which the full estimated cost of the scheme is charged against the service's capital cash limit for the year in which the scheme is started. For the first time in 2004/05, some schemes were controlled on an `expenditure' basis, whereby the amount actually spent in the year is charged against the cash limit. This method of control is more appropriate for some lump sum provisions and block votes. The total of £144.737m shown in Table 1 for the schemes started in 2004/05 is an aggregate for both `starts' and `expenditure' schemes.
1.3 An analysis by service of the figures in Table 1 is provided in the attached Annex 1.
2 Carry forward of schemes not started by 31 March 2005
2.1 The Leader agreed in April 2005 the principle of carrying forward capital schemes which were planned to start by 31 March 2005 but, for various reasons, will not start until 2005/06. This agreement was subject to the cost of such schemes being accommodated within services' approved programme limits. Details of the schemes that it is now proposed should be carried forward in accordance with that decision are included in Annex 2.
2.2 The total value of schemes to be carried forward is £23.1m. This includes £7.2m of Education schemes which have previously been approved for carry forward to 2005/06 during the course of the year.
2.3 As Table 2 shows, the proportion of the 2004/05 programme that has been started in the year, at 86.2%, is similar to the level achieved since steps were taken during 2001 to improve the delivery of the programme.
Table 2 - Percentage of capital programme started | |||||
2000/01 |
2001/02 |
2002/03 |
2003/04 |
2004/05 | |
£m |
£m |
£m |
£m |
||
Value of projects |
|||||
- started |
70.5 |
128.7 |
110.6 |
212.6 |
144.7 |
- carried forward |
34.7 |
20.4 |
22.5 |
29.2 |
23.1 |
-------- |
-------- |
-------- |
-------- |
-------- | |
Total programme |
105.2 |
149.1 |
133.1 |
241.8 |
167.8 |
-------- |
-------- |
-------- |
-------- |
-------- | |
Percentage started |
67.0% |
86.3% |
83.1% |
87.9% |
86.2% |
2.4 The programme for 2004/05 at £167.8m is lower than the total originally approved for 2004/05 of £255m primarily because the South Hampshire Rapid Transit scheme has been deleted following the Government's decision not to increase its level of support and pending the outcome of the subsequent review of the scheme. The higher level of the programme in 2003/04, shown in Table 2, reflects the inclusion of the £60m ENHANCE scheme to provide nursing care accommodation.
3 Reasons for schemes not starting by 31 March 2005
3.1 The full reasons for not starting each scheme during the year are listed in Annex 2. Some are dependent upon specific negotiations and arrangements being made with third parties. In total, approval is now sought to carry forward 91 individual schemes and block provisions, in addition to the nine Education schemes for which approval has already been given.
3.2 The schemes listed in Annex 2 can be carried forward to 2005/06 subject to the latest estimated costs of the schemes being accommodated within the overall starts limits for 2005/06.
4 Capital expenditure and financing 2004/05
4.1 Total expenditure actually incurred in 2004/05, arising from the capital programme for 2004/05 and earlier years, was £208.4m. This is £5.6m or 2.8% more than the revised estimate. The timing of capital payments is difficult to predict and in most years slippage is greater than predicted. In 2004/05, however, the adjustment for slippage made to the gross forecasts of capital expenditure in the year proved to be a little overstated. As slippage from 2004/05 to 2005/06 has been less than expected, the higher than estimated level of expenditure in 2004/05 should be matched by an equivalent reduction in expenditure in 2005/06.
4.2 The proposed method of financing this expenditure is set out in Table 3 below:
Table 3 - Capital financing 2004/05 | ||||
Adjusted |
Actuals |
Variation |
Actual | |
revised |
funding | |||
estimate |
||||
Feb 2005 |
||||
£000 |
£000 |
£000 |
% | |
Loan |
||||
- supported by revenue grant |
60,076 |
61,260 |
1,184 |
29.4 |
- unsupported borrowing |
22,760 |
21,097 |
-1,663 |
10.1 |
Government capital grants |
45,555 |
41,269 |
-4,286 |
19.8 |
Contributions from developers |
||||
and outside agencies |
37,332 |
42,098 |
4,766 |
20.2 |
Capital receipts |
13,269 |
18,469 |
5,200 |
8.9 |
Capital reserve |
3,267 |
4,788 |
1,521 |
2.3 |
Revenue reserves - trading |
||||
units, on-street parking and |
||||
insurance |
8,117 |
7,007 |
-1,110 |
3.4 |
Revenue contributions |
||||
- General corporate provision |
11,316 |
11,316 |
- |
5.4 |
- Set aside by schools |
1,134 |
1,134 |
- |
0.5 |
----------- |
----------- |
----------- |
----------- | |
202,826 |
208,438 |
5,612 |
100.0 | |
----------- |
----------- |
----------- |
----------- | |
4.3 The additional expenditure in 2004/05 has been funded by increased use of local resources, including taking £1.5m from the capital reserve a year earlier than originally planned.
5 Borrowing
5.1 Since 1 April 2004, local authorities have been permitted to borrow for capital purposes without specific approval from the Government, provided their actions meet the requirements of the Prudential Code for Capital Finance introduced by the Local Government Act 2003. Such borrowing does not attract any support from the Government towards the repayment and interest costs, which fall wholly on the County Council's own resources. Cabinet agreed criteria for the use of `prudential borrowing' in November 2003 and since then has approved the use of such borrowing for a number of capital schemes, primarily on an invest-to-save basis. A total of £21.1m will be borrowed in 2004/05 for these schemes. The County Council's position, following the 2004/05 outturn, under the prudential indicators prescribed by the Code is summarised in Appendix 6.
5.2 In addition, £61.3m of loans will be raised that will attract revenue grant support from the Government towards repayment and interest costs. The Government has also given £41.3m of capital grants towards expenditure in 2004/05.
6 Capital receipts
6.1 Capital receipts from the sale of land and property totalling £18.5m were obtained, as summarised in Annex 3. Services can retain 25% of capital receipts from the sale of their assets, with up to 100% for approved in/out schemes. Receipts from development account and county farm sales are retained for corporate use. In accordance with this policy, services' share of the capital receipts in 2004/05 now due to be allocated amounts to £107,000 as set out in Annex 4.
Annex 1 | ||||||
Analysis of capital programme 2004/05 and requests by services to carry forward capital schemes to 2004/05 | ||||||
(1) |
(2) |
(3) |
(4) |
(5) |
(6) | |
Approved |
Schemes |
Schemes |
Schemes |
Cash limit |
Cash limit | |
value of |
started |
for which |
already |
available |
carried | |
programme |
in |
approval |
approved |
for carry |
forward to | |
2004/05 |
to carry |
for carry |
forward |
2005/06 | ||
forward |
forward |
to meet |
(columns | |||
is now |
2005/06 |
3+4+5) | ||||
requested |
inflation |
|||||
£000 |
£000 |
£000 |
£000 |
£000 |
£000 | |
Education |
60,991 |
46,979 |
5,984 |
7,206 |
822 |
14,012 |
Environment |
55,777 |
52,296 |
1,318 |
- |
2,163 |
3,481 |
Policy and Resources |
42,455 |
38,836 |
3,619 |
- |
- |
3,619 |
Recreation & Heritage |
4,229 |
3,107 |
945 |
- |
177 |
1,122 |
Social Services |
4,395 |
3,519 |
874 |
- |
2 |
876 |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- | |
167,847 |
144,737 |
12,740 |
7,206 |
3,164 |
23,110 | |
---------- |
---------- |
---------- |
---------- |
---------- |
---------- | |
Annex 2 |
Capital Programme 2004/05 |
|||||
Schemes not started by 31 March 2005 |
|||||
Schemes |
Value |
Latest |
|
Reasons for Delay | |
|
£000 |
Start Date |
|
| |
|
|
|
|
| |
Education |
|
|
|
| |
|
|
|
|
| |
Havant Special |
160 |
|
To be confirmed |
|
Delays in obtaining planning permission |
Whitchurch Primary |
533 |
|
June 2005 |
|
Programme revised to start at beginning |
|
|
|
|
of 2005/06 | |
Kempshott Junior, Basingstoke |
53 |
|
To be confirmed |
|
Brief being agreed with school |
Prices Trust |
111 |
|
To be confirmed |
|
Proposals for use to be considered by the |
|
|
|
|
Executive Member for Education on | |
|
|
|
|
14 July 2005 | |
Specialist status |
|
|
|
| |
Bay House Secondary, Gosport |
100 |
|
) |
|
) |
Amery Hill Secondary, Alton |
100 |
|
) |
|
) |
Alderman Quilley Secondary, |
100 |
|
) |
|
) |
Eastleigh |
) |
) | |||
John Hanson Secondary, Andover |
100 |
|
) |
|
) |
The Petersfield Secondary |
100 |
|
) To be |
|
) Developing brief with schools, many |
Priestlands Secondary, Lymington |
100 |
|
) confirmed |
|
) of which are part of larger projects and |
Toynbee Secondary, Chandlers |
100 |
|
) |
|
) take longer to develop |
Ford |
) |
) | |||
Testwood Secondary, Totton |
100 |
|
) |
|
) |
Brune Park Secondary, Gosport |
100 |
|
) |
|
) |
Crestwood Secondary, Eastleigh |
122 |
|
) |
|
) |
Eggars Secondary, Alton |
100 |
|
) |
|
) |
Robert Mays Secondary, Odiham |
100 |
|
) |
|
) |
Frogmore Secondary, Yateley |
100 |
|
June 2005 |
|
) |
Minor works |
|
|
|
| |
Ashley Infants |
100 |
|
To be confirmed |
|
On hold. Likely to be diverted to other |
|
|
|
|
early years initiatives | |
The Butts Primary, Alton |
50 |
|
July 2005 |
|
Programme revised to start at beginning |
|
|
|
|
of 2005/06 | |
Staff Facilities - contingency |
20 |
|
Various |
|
Funding was not allocated in 2004/05 and |
|
|
|
|
will be added to the 2005/06 provision | |
|
|
|
|
for staff facilities | |
Minstead Study centre |
165 |
|
July 2005 |
|
Scope of project reviewed following cost |
|
|
|
|
increases | |
Connaught Secondary, Aldershot |
30 |
|
To be confirmed |
|
Brief to be agreed with school |
Education - continued |
|||||
|
|
|
|
| |
SEED Challenge - contingency |
|
|
|
| |
Henry Cort Secondary, Fareham |
19 |
|
July 2005 |
|
Programme revised to start at beginning |
|
|
|
|
of 2005/06 | |
Hordle Primary |
97 |
|
To be confirmed |
|
Voluntary Aided school's governors are |
|
|
|
|
managing the project which is due to | |
|
|
|
|
be completed by September 2005 | |
Mountbatten Secondary, Romsey |
135 |
|
August 2005 |
|
Programme revised to start at beginning |
|
|
|
|
of 2005/06 | |
St Bernadette Primary, Cove |
42 |
|
July 2005 |
|
Voluntary Aided school's governors are |
|
|
|
|
managing the project which is due to | |
|
|
|
|
be completed by September 2005 | |
Limington House Special, |
43 |
|
June 2005 |
|
Programme revised to start at beginning |
Basingstoke |
|
|
|
of 2005/06 | |
Education - continued |
|||||
Denmead Junior |
66 |
|
June 2005 |
|
Programme revised to start at beginning |
|
|
|
|
of 2005/06 | |
Modernisation - contingency |
125 |
|
Various |
|
Funding unallocated and carried forward |
|
|
|
|
to add to overall capital programme | |
resources | |||||
Henry Cort Secondary, Fareham |
94 |
|
July 2005 |
|
Programme revised to start at beginning |
|
|
|
|
of 2005/06 | |
Minstead Study Centre |
211 |
|
July 2005 |
|
Scope of project reviewed following cost |
|
|
|
|
increases | |
Staunton Park Community, Havant |
121 |
|
To be confirmed |
|
Pump priming provision for other |
|
|
|
|
resources | |
Early education facilities |
|||||
- permanent facilities |
17 |
|
Various |
|
) |
- replace temporary facilities |
97 |
|
Various |
|
) Funding unallocated and carried forward |
Management of falling rolls |
559 |
|
Various |
|
) to add to the provision for 2005/06 |
Management of health & safety |
245 |
|
Various |
|
) |
|
|
|
|
| |
Court Moor Secondary, Fleet |
68 |
|
To be confirmed |
|
Brief being agreed with school |
West End Infant, Aldershot |
76 |
|
To be confirmed |
|
Brief being agreed with school |
Wallop Primary |
90 |
|
To be confirmed |
|
Brief being agreed with school |
Education - continued |
|||||
Calmore Infant |
438 |
|
May 2005 |
|
Programme revised to start at beginning |
|
|
|
|
of 2005/06 | |
Youth |
|
|
|
| |
Images, Dibden |
20 |
|
To be confirmed |
|
Awaiting Landlord's approval |
New Milton Youth Centre |
40 |
|
To be confirmed |
|
Additional funds to be agreed |
Chandlers Ford Youth Centre |
34 |
|
To be confirmed |
|
Awaiting Landlord's approval |
|
|
|
|
| |
East Hampshire Special School |
248 |
|
May 2005 |
|
Programme revised to start at beginning |
Review |
|
|
|
of 2005/06 | |
Furniture and equipment |
26 |
|
Various |
|
Allocated to schools but not yet spent |
Schools Access Initiative |
529 |
|
Various |
|
Briefs to be agreed with schools |
|
|
|
|
| |
Total Education |
5,984 |
|
|
9.8% of schemes approved to start | |
|
|
|
in 2004/05 to be carried forward | ||
|
|
|
|
|
|
|
|
|
|
| |
Environment |
|
|
|
| |
|
|
|
|
| |
Structural maintenance |
|
|
| ||
- locally resourced |
578 |
|
) |
|
) |
- Government supported |
453 |
) |
) | ||
Community safety initiative |
37 |
) |
) | ||
Rural partnership schemes |
65 |
) to be added |
) Balance of provision for schemes | ||
Passenger transport information |
12 |
) to provisions |
) controlled on an expenditure basis | ||
Air quality and noise monitoring |
19 |
) in 2005/06 |
) to be carried forward to 2005/06 | ||
Local Transport Plan monitoring |
127 |
) programme |
) | ||
and initiatives |
) |
) | |||
Recreational cycling |
27 |
) |
) | ||
|
|
|
|
|
|
Total Environment |
1,318 |
|
|
|
2.4% of schemes approved to start |
|
|
|
|
|
in 2004/05 to be carried forward |
|
|
|
|
|
|
|
|
|
|
|
|
Policy and Resources |
|
|
|
| |
|
|
|
|
| |
Economic Development |
|
|
|
| |
Aldershot Enterprise Centre |
64 |
|
2005/06 |
|
Discussions with possible provider / |
|
|
|
|
partners are in hand | |
Bordon / Whitehill redevelopment |
5 |
|
May 2005 |
|
Agreement reached at end of 2004/05 |
|
|
|
|
to start early in 2005/06 | |
Defence Heritage |
|
|
|
| |
M33 Minerva |
73 |
|
2005/06 |
|
Mothballing |
Fort Gilkicker |
100 |
|
Not known |
|
Ongoing negotiation to secure disposal |
Coastal Conservation |
|
|
|
| |
Festival of the Sea display / |
13 |
|
2005/06 |
|
Display to be completed for the Festival |
consultation |
|
|
|
of the Sea 2005 | |
Coastal defence works 2003/04 |
20 |
|
2005/06 |
|
Emergency works not required in 2003/04 |
|
|
|
|
or 2004/05 | |
Land Management |
|
|
|
| |
Minor schemes |
22 |
|
2005/06 |
|
Staff shortages have delayed programme |
|
|
|
|
implementation | |
Sites and Buildings |
|
|
|
| |
Office accommodation |
203 |
|
Various |
|
Resources retained to have strategic |
|
|
|
|
impact when opportunity / need arises | |
Capital repairs |
211 |
|
2005/06 |
|
Orders not placed for three schemes |
|
|
|
|
until April 2005 | |
New Deals for Schools |
209 |
|
2005/06 |
|
Government funding requires that |
|
|
|
|
resources are spent by August 2005 | |
Advantageous land purchases |
1,060 |
|
2005/06 |
|
To be transferred to capital repairs |
|
|
|
|
in 2005/06 | |
Advance fees |
410 |
|
2005/06 |
|
Expected to be required in 2005/06 |
Businesses |
|
|
|
| |
Supplies |
10 |
|
2005/06 |
|
) Various reasons, including |
HC3S |
100 |
|
2005/06 |
|
) awaiting final decisions from |
Hampshire Transport Management |
146 |
|
June 2005 |
|
) schools |
Policy and Resources - continued |
|||||
Other |
|
|
|
| |
Health scrutiny function |
25 |
|
2005/06 |
|
Re-phasing of scheme |
IT - investment in infrastructure |
644 |
|
2005/06 |
|
Re-phasing of investment programme |
Unallocated |
304 |
|
Not known |
|
Not applicable |
|
|
|
|
| |
Total Policy and Resources |
3,619 |
|
|
8.5% of schemes approved to start | |
|
|
|
|
in 2004/05 to be carried forward | |
|
|
|
|
| |
|
|
|
|
| |
Recreation and Heritage |
|||||
|
|
|
|
| |
Countryside and Rights of Way |
121 |
|
Autumn 2005 |
|
Operational reasons and access |
improvements |
|
|
difficulties | ||
Grants to village halls |
125 |
|
Unknown |
|
Assembling funds from other sources |
Outdoor centres |
48 |
|
Autumn 2005 |
|
Assembling funds from other sources |
Minor grants |
5 |
|
Unknown |
|
Reviewing plans |
Product development |
41 |
|
Summer 2005 |
|
Delay in finalising scheme |
Partnership projects |
10 |
|
Summer 2005 |
|
Operational reasons |
Disability Discrimination Act |
45 |
|
Summer 2005 |
|
Operational reasons |
schemes |
|||||
ICT development |
49 |
|
Summer 2005 |
|
Operational reasons |
Romsey Library extension |
350 |
|
Summer 2005 |
|
Delays in planning permissions |
Museums and Archives |
81 |
|
Summer 2005 |
|
Legal delays & assembling funding from |
|
|
|
|
other sources | |
Rockbourne Roman Villa |
70 |
|
Autumn 2005 |
|
Reviewing plans |
|
|
|
|
| |
Total Recreation and Heritage |
945 |
|
|
22.3% of schemes approved to start | |
|
|
|
|
in 2004/05 to be carried forward | |
|
|
|
| ||
Social Services |
|
|
|
| |
|
|
|
|
| |
Residential and day care premises |
|
|
|
| |
- minor works |
204 |
|
Various |
|
Balance of allocation |
- furniture and equipment |
164 |
|
Various |
|
Linked with building works schemes |
Furniture and equipment in office |
160 |
|
Various |
|
Linked with building works schemes |
bases |
|||||
IT equipment |
11 |
|
Various |
|
Balance of allocation |
Non-residential charging system |
97 |
|
Ongoing |
|
Ongoing scheme |
Mental health services |
200 |
|
Various |
|
) Government support available over |
Information management |
4 |
|
Ongoing |
|
) two years |
IT for looked after children and |
34 |
|
Ongoing |
|
) |
care leavers |
|
|
|||
|
|
|
|
| |
Total Social Services |
874 |
|
|
19.9% of schemes approved to start | |
|
|
|
|
in 2004/05 to be carried forward | |
Total all services |
12,740 |
|
|
7.6% of schemes approved to start | |
|
|
|
in 2004/05 to be carried forward | ||
Add: Education schemes |
|
|
|
| |
previously approved for carry |
7,206 |
||||
forward to 2005/06 |
|
|
| ||
|
|
|
|
| |
Total schemes carried forward |
19,946 |
|
|
11.9% of schemes approved to start | |
|
|
|
|
in 2004/05 to be carried forward | |
Add: balance of cash limit carried |
|||||
forward |
3,164 |
||||
Total cash limit carried forward |
23,110 |
13.8% of schemes approved to start | |||
in 2004/05 to be carried forward | |||||
Annex 3
Summary of capital payments 2004/05
Analysis by service
£000 |
% | |
Education |
96,727 |
46.4 |
Environment |
59,018 |
28.3 |
Policy and Resources |
10,193 |
4.9 |
Recreation and Heritage |
8,287 |
4.0 |
Social Services |
34,213 |
16.4 |
----------- |
-------- | |
208,438 |
100.0 | |
----------- |
-------- | |
Analysis by type of expenditure
£000 |
% | |
Land |
2,289 |
1.1 |
Construction work |
166,585 |
79.9 |
Fees and salaries |
31,995 |
15.4 |
Furniture, equipment and vehicles |
7,569 |
3.6 |
----------- |
-------- | |
208,438 |
100.0 | |
----------- |
-------- |
Annex 4
Analysis of capital receipts 2004/05
(1) |
(2) |
(3) | |
Net |
Share from in/out |
25% share of | |
capital |
and other schemes |
qualifying | |
receipts |
previously added |
receipts now | |
to programme |
due to services | ||
£000 |
£000 |
£000 | |
Education |
6,026 |
4,389 |
- |
Environment |
263 |
- |
66 |
Policy and Resources |
|||
- Development account |
11,247 |
- |
- |
- Other |
162 |
- |
41 |
Recreation and Heritage |
771 |
771 |
- |
Social Services |
- |
- |
- |
----------- |
----------- |
----------- | |
18,469 |
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i:\. . . .\ian\docs\cabinet 27Jun05 final acs capital1.doc