STOCKPORT METROPOLITAN BOROUGH COUNCIL

Agenda item 13

STOCKPORT METROPOLITAN BOROUGH COUNCIL

REPORT TO EXECUTIVE MEETING - SUMMARY SHEET

Subject: Provisional Capital Outturn 2008/09

Report to Executive Meeting Date: 8 June 2009

Report of: (a) Executive Councillor (Finance)

Key Decision: (b) NO/ YES (please circle)

(Forward Plan

General Exception

Special Urgency)

Tick box

Summary

The purpose of this report is to update the Executive with regard to progress in achieving the outputs and outcomes of the 2008/09 capital programme and to seek approval for amendments to the three year programme to reflect changes in available funding.

The final approved capital programme for 2008/09 was £76.864m and the outturn for the year is £72.327m, resulting in a final in year surplus of resources over expenditure which will be switched between years. The majority of the surplus is associated with schemes which are delegated to schools and are, therefore, out of the Councils direct control.

Amendments to reflect programming changes between 2009/10 and 2010/11 are proposed. These changes relate to the Children and Young People (CYP), Communities and Transportation Portfolios, where £3.066m, £5m and £0.500m respectively will be accelerated from 2010/11. The capital programme is a vital local catalyst and it is envisaged this acceleration will further stimulate the local economy.

Monitoring reports throughout the financial year have highlighted the impact the economic downturn is having on achieving capital receipts which underpin elements of the programme. As part of the recent budget setting process action was taken to reduce the level of capital receipts included in the three year capital programme to a more achievable target. Receipts required to finance the programme in 2008/09 are broadly in line with actual receipts received.

There are two schemes in the Regeneration Portfolio that have overspent their approved resources and the reasons for this are included in Appendix Three. The Executive is asked to approve additional prudential borrowing of £0.376m for these schemes, and that the revenue cost of this borrowing is contained within the Regeneration portfolio cash limit.

Comments/Views of the Executive Councillor: (c)

The Capital Programme in 2008/09 was very wide ranging and delivered significant improvements in a number of our priority service areas. On the whole the overall management and delivery of the programme has been highly effective, making the best use of the resources available and delivering a large number of schemes on target.

2009/10 is going to be a significant year for capital projects and investment in the Councils infrastructure with a planned programme of over £100m.

Recommendation(s) of Executive Councillor: (d)

The Executive is asked to

Approve the changes to the capital programme shown in Appendix One.
Approve the resourcing of the capital programme set out in Appendix Two.
Note the progress on capital schemes as set out in Appendix Three.
Approve the additional prudential borrowing for the Regeneration Portfolio.
Note the Prudential Indictors set out in Appendix Four
Delegate the approval of any final changes to the capital outturn, resourcing and prudential indicators to the Corporate Director, Business Services in consultation with the Executive Councillor, Finance.

Relevant Scrutiny Committee (if decision called in):

(e) The report is relevant in parts to all scrutiny committees.

Background Papers (if report for publication): (f)

The Council Budget, Council Meeting 28 February 2008.

Contact person for accessing Officer: Louise Grainger

background papers and discussing the report Tel: 0161 474 4028

`Urgent Business': (g) YES / NO (please circle)

EXECUTIVE MEETING - 8 JUNE 2009

AGENDA ITEM No 13

Provisional Capital Outturn 2008/09

Report of the Corporate Director, Business Services

Introduction

The purpose of this report is to update the Executive with regard to the progress in achieving the priority outputs and outcomes of the 2008/09 capital programme and to seek approval for amendments to the three year programme to reflect the outturn position, notification of additional funding and other changes to the programme between years.

There is generally a good degree of flexibility in using the resources associated with the capital programme between financial years and the programme is set within a three year time frame. The flexibility of the resources recognises that capital projects are usually complex and whilst resources are time limited and often linked to specific schemes it is often difficult to forecast the exact physical and financial profile of some individual projects and therefore split the overall capital programme accurately into strict financial years.

Capital Programme 2008/09 to 2010/11

The following table summarises the outturn position for 2008/09 and shows the programme for 2008/09 through to 2010/11.

Expenditure
as at
31 March	Portfolio	2008/09	2008/09	2009/10	2010/11
2009		Programme	Variation	Programme	Programme
£000		£000	£000	£000	£000

401	Adults and Health	579	(178)	1,493	360
14,352	Children & Young People	18,291	(3,939)	35,278	21,408
33,170	Communities	32,908	262	40,328	25,659
427	Customer Focus	660	(233)	462	0
501	Environment	501	0	4,356	1,835
4,758	Finance	4,800	(42)	2,815	2,000
2,013	Leisure	2,293	(280)	1,478	440
2,557	Regeneration	2,481	76	1,164	0
14,148	Transportation	14,351	(203)	13,583	13,266

72,327	TOTAL	76,864	*(4,537)	100,957	64,968

(*£0.962m on Council controlled schemes and £3.575m on CYP Individual School controlled schemes).

The three year capital programme above incorporates changes approved by Council on 26^th February and also includes further changes to reflect amendments to resource notifications underpinning the programme.

The 2009/10 programme above incorporates the changes which flow from the carry forward of variations in the 2008/09 programme and resources.

Significant elements of the 2010/11 programme have been brought forward into 2009/10. Central Government requested that the Council should consider acceleration of its 2010/11 programme into 2009/10 and agreed to release funding earlier if projects could be delivered earlier. Strategic Capital Group considered various options proposed by programme managers and has identified projects which can be accelerated. The changes relate to CYP, £3.066m, Communities, £5.0m and Transportation, £0.500m. The capital programme is a vital catalyst and contributor to the local economy. It is envisaged that such significant acceleration of the programme will help to further stimulate the recovery of the local economy.

Appendix One sets out the changes to each year of the three year programme, full details of the variations and amendments by portfolio are included in Appendix Three.

Portfolio Programme Key Outcomes

Key outcomes and performance measures achieved through capital expenditure for each portfolio's programme are included in Appendix Three. Highlights from each programme are shown below.

The Adults and Health Portfolio achieved expenditure of £0.401m compared to a programme of £0.579m. Work has commenced on a wide range of schemes that will continue into 2009/10 and the unused resources will be carried forward. In particular there are various schemes associated with the Mental Health Service which are being carried out in partnership with the PCT.

The Children and Young People Portfolio achieved expenditure of £14.352m compared to a programme of £18.291m. The significant variation is explained below.

The CYP programme is split into two elements, that directly controlled by the Council, £11.675m and that delegated and controlled by individual schools through the Individual Schools Scheme, £7.252m. Performance on the Council controlled schemes is in line with the programme whereas the element controlled by schools shows that a significant amount of anticipated expenditure has not taken place in 2008/09.

This is due to the fact that schools are allowed to “save up” their resource allocations. Funding by individual schools can be accumulated for up to 3 years to allow them to undertake a larger project than a single year's funding would facilitate. The programme now needs to be adjusted to reflect the approaches being taken by individual schools.

The Communities Portfolio achieved expenditure of £33.170m compared to a programme of £32.908m. This is a significant achievement and highlights are included below;

The Communities Portfolio HRA programme continued its effective performance in delivering schemes to reduce the number of non-decent homes within the Borough, including kitchen and bathroom refurbishment for over 2,000 properties. Additional works of £0.256m have been completed earlier than planned, which helped in reaching the target of 17% non-decent homes by the end of March 2009.

The Communities Portfolio Strategic Housing programme also performed well and delivered many key priority outcomes. For example 268 grant funded adaptation schemes were completed in privately owned and housing association properties. A key milestone for the Renewal Programme is the completion of over 100 block improvements in the Shaw Heath Renewal Area and the well publicised and acclaimed `outdoor gym' in Shaw Heath Park

Other achievements in the Communities Portfolio include the acquisition of First House from Brinnington Community Trust, to enable ongoing service delivery to the community. A wide range of crime prevention measures have been introduced and work on the Brinnington Shops scheme is nearing completion.

The Customer Focus Portfolio achieved expenditure of £0.427m compared to a programme of £0.660m. Purchase of software licences as part of the Share point / Unified Communication Platform scheme, is a key element of the Information Management Strategy which aspires to one version of data which is easily and consistently available to all the relevant users. This will work in conjunction with the intranet, current email and telephone systems to bring a single view of both data and staff resources. The Work Life Balance scheme continues to deliver a range of benefits to the Council and staff whilst supporting delivery of the Accommodation Strategy.

Expenditure of £0.501m in the Environment Portfolio all relates to procurement of recycling bins to support the new waste collection strategy which will be implemented over the next 3 years. At the end of the rollout period over 100,000 properties will have separate collection for dry recyclables, food and garden, and residual.

Within the Finance Portfolio expenditure was £4.758m compared to £4.800m. The key milestone being the completion of the refurbishment of Stopford House office areas. Implementation of the LAMP system continued throughout 2008/09 and final sign off is anticipated in May 2009.

Leisure Portfolio expenditure was £2.013m compared to a programme of £2.293m. The majority of the expenditure relates to the Pavilions at the William Scholes and Bradshaw Hall Playing Fields. Both of these schemes were partially funded by grants from the Football Foundation and will provide valuable improved sporting facilities in the area.

Within the Regeneration Portfolio expenditure of £2.557m compares to a programme of £2.481m resulting in an overachievement of some £0.076m. Within the overachievement of the programme are overspends on two projects.

The St Peters Square scheme and Market Refurbishment together have a funding deficit of £0.376m. Detailed commentary on how these projects developed and why they have overspent against their programme allocation is included in the Regeneration Portfolio narrative in appendix Three.

The Executive is asked to approve additional prudential borrowing to cover these deficits and the revenue cost of that borrowing will be found from the Regeneration portfolio cash limits in subsequent years.

Within the Transportation Portfolio expenditure of £14.148m compared to a programme of £14.351m successfully delivered number of large and varied schemes with significant priority outcomes. Additional external funds have been applied in the final quarter to match the additional expenditure.

Resourcing the 2008/09 Capital Programme

All variations to the 2008/09 programme are contained within the original resources allocated to projects with the exception of the deficits within the Regeneration Portfolio as outlined in paragraph 3.9 above.

Appendix Two shows the resources that will be used to fund the 2008/09 capital programme.

Financial monitoring reports throughout the financial year have highlighted the impact that the economic downturn is having on achieving capital receipts which underpin the programme. As part of the recent budget setting process action was taken to reduce the level of capital receipts included in the 2008/11 capital programme to a more achievable target of £2.066m. As a result the actual receipts required to finance the programme in 2008/09 are broadly in line with the actual receipts received.

Prudential Indicators

The Prudential Code sets out the indicators that must be used to demonstrate that capital investment plans are affordable, prudent and sustainable. These prudential indicators are designed to support strategic financial planning and local decision making. As part of the annual budget setting process the prudential indicators are set for the forthcoming year and the following two years. The estimated and actual indicators for 2008/09 are set out in Appendix Four.

Statement of Accounts 2008/09

The Statement of Accounts for 2008/09 is being prepared and will be presented to the Audit Committee for approval on 23 June 2009. The process of finalising the Statement of Accounts typically gives rise to late adjustments which may impact on the provisional capital outturn and resourcing position outlined in this report.

In these circumstances, it is proposed that the approval of changes to the outturn, resourcing and prudential indicators is delegated to the Corporate Director, Business Services in conjunction with the Executive Councillor (Finance).

Conclusion

The capital programme outturn for the year is £72.327m. This is a significant level of capital expenditure and in the areas where the Council does control that expenditure (excluding Individual Schools Schemes) it just falls short of fully committing the final programme which is an achievement worthy of note.

The 2009/10 programme has been adjusted to reflect the over and under programming that has occurred across the portfolio programmes in 2008/09.

Measures have been taken to address the deficits in the Regeneration Portfolio and measures will be taken across the Council to further improve project management skills and capital programme management during 2009/10 which is going to be the most significant year for the Capital Programme to date.

Recommendations

The Executive is asked to:

Approve the changes to the capital programme shown in Appendix One.
Approve the resourcing of the capital programme set out in Appendix Two.
Note the progress on capital schemes as set out in Appendix Three.
Approve the additional prudential borrowing for the Regeneration Portfolio.
Note the Prudential Indictors set out in Appendix Four.
Delegate the approval of any final changes to the capital outturn, resourcing and prudential indicators to the Corporate Director, Business Services in conjunction with the Executive Councillor (Finance).

Appendix One

CAPITAL PROGRAMME 2008/09- 2010/11

CHANGES TO THE PROGRAMME SINCE REPORT TO COUNCIL MEETING (28^thFebruary 2008)

2008/09	Original	As at	Additional	Virement	Revised
	Programme	31 Dec	/ Reduced	/ Rephased	Programme
Portfolio		2008	Programme

	£000	£000	£000	£000	£000

Adults & Health	1,023	579			579
CYP	14,556	17,833	458		18,291
Communities	31,436	32,524	384		32,908
Customer Focus	330	660			660
Environment	386	501			501
Finance	7,227	4,718	82		4,800
Leisure	1,727	2,142	151		2,293
Regeneration	1,555	2,286	95	100	2,481
Transportation	13,841	12,719	1,632		14,351

Total	72,081	73,962	2,802	100	76,864


2009/10	Original	As at	Additional	Virement	Revised
	Programme	31 Dec	/ Reduced	/ Rephased	Programme
Portfolio		2008	Programme

	£000	£000	£000	£000	£000

Adults & Health	415	1,315		178	1,493
CYP	19,643	27,810	463	7,005	35,278
Communities	31,789	33,307	2,283	4,738	40,328
Customer Focus	0	229		233	462
Environment	12	4,356		0	4,356
Finance	2,534	3,993	(1,220)	42	2,815
Leisure	209	1,179	19	280	1,478
Regeneration	825	864		300	1,164
Transportation	12,268	12,980		603	13,583

Total	67,695	86,033	1,545	13,379	100,957



2010/11	Original	As at	Additional	Virement	Revised
	Programme	31 Dec	/ Reduced	/ Rephased	Programme
Portfolio		2008	Programme

	£000	£000	£000	£000	£000


Adults & Health	270	360			360
CYP	26,316	24,440	34	(3,066)	21,408
Communities	32,450	30,659		(5,000)	25,659
Customer Focus	0	0			0
Environment	12	1,835			1,835
Finance	960	2,460	(460)		2,000
Leisure	40	440			440
Regeneration	0				0
Transportation	13,819	13,766		(500)	13,266

Total	73,867	73,960	(426)	(8,566)	64,968

Appendix Two

RESOURCING THE 2008/09 - 2010/11 CAPITAL PROGRAMME


	2008/09	2009/10	2010/11
Resources	£000	£000	£000

Supported Borrowing
Ringfenced	20,905	32,141	14,622
Non Ringfenced	9,043	29,625	4,966
Capital Grants	18,624	14,892	25,617
Unsupported Borrowing	11,170	14,136	7,075
External Contributions	3,499	0	426
Capital Receipts	1,769	1,552	3,796
Commuted Sums	992	450	0
Revenue Contributions (RCCO)	6,325	8,161	8,466

TOTAL	72,327	100,957	64,968

Appendix Three

Adults Capital Programme Progress as at 31^st March 2009

Overview of Progress to 31^st March 2009

The table below highlights the key schemes in the programme

Expenditure
as at
31 March		2008/09	2008/09	2009/10	2010/11
2009	Scheme	Programme	Variation	Programme	Programme
£000		£000	£000	£000	£000

20	Asset Management Plan	120	(100)	238
327	Mental Health Schemes	291	36	337	123
0	IT Software (Care First)	35	(35)	35
48	Dignity in Care	53	(5)	5
0	IT Infrastructure	80	(80)	165	90
	Social Care		0	294	147
6	York House & Ashlea Offices		6	419

401	TOTAL	579	(178)	1,493	360



		2008/09	Variation	2009/10	2010/11
	Resources	£000		£000	£000

	Supported Borrowing
	Ringfenced	173	(54)	181
	Non Ringfenced	238	(10)	148
	Capital Grants	133	(85)	710	360
	Unsupported Borrowing	35	(35)	35
	External Contributions		0	0
	Capital Receipts		0	0
	Commuted Sums		0	0
	Revenue Contributions (RCCO)		6	419

	TOTAL	579	(178)	1,493	360

Programme Amendments

Scheme	2008/09 £'000	2009/10 £'000	2010/11 £'000	Funding Source	Reason
Asset Management Plan		100		Supported Borrowing	Rephased from 2008/09
Mental Health Schemes		(36)		Supported Borrowing	Programme reduced to reflect expenditure in 2008/09
IT Software (Care First)		35		Unsupported Borrowing	Rephased from 2008/09
Dignity in Care		5		Capital Grant	Rephased from 2008/09
IT Infrastructure		80		Capital Grant	Rephased from 2008/09
York House & Ashlea Offices		(6)		RCCO	Programme reduced to reflect expenditure in 2008/09
Total	0	178	0

Progress on Specific Schemes

The following comments explain the reasons for variations in the programme and the `Milestones' achieved through the capital programme in 2008/09.

Asset Management Plan and Social Care

A contribution of £0.120m is being made from this programme to cover the cost of work to toilets and other facilities on the 4^th floor of Stopford House. £0.021m of costs were incurred in 2008/09 and the rest will now be rephased to 2009/10.

Mental Health Schemes

This programme summarises various projects carried out in partnership with the PCT and Pennine Care. The Quarter Three report included some rephasing into 2009/10, but in fact spending in 2008/09 was slightly higher than expected. This was contained within the overall programme.

£0.007m was included for early stages of the Redcroft scheme for conservatory & structural improvements but actual spend was £0.001m due to hold-ups at the planning approval stage. The rest will be rephased to 2009/10.

£0.235m was included for the Progress House/Stockport Day Centre conversion of a loft space to create more space, new equipment, improved ventilation, and facilities for a food production enterprise to assist employment & skill development. Much of the structural work has now been done, but spending in 2008/09 was only £0.207m. The rest will be rephased into 2009/10.

A Narrow Boat has been commissioned as a floating community resource, addressing wellbeing & mental health promotion with excluded community groups. A contract for £0.165m has been signed with a third sector organisation and at Quarter Three the expectation was this expenditure would occur in 2009/10. Actual expenditure £0.015m for the first payment was made in 2008/09.

£0.025m was included for the Wellbeing Centre/Graylaw House to cover improvements to air-conditioning; this was completed in 2008/09 at a cost of £0.014m.

£0.025m was included for website development and purchase of computers for mental health providers. This was completed in 2008/09 at a cost of £0.020m.

In addition, £0.069m was spent in the final quarter of the year on two schemes that had not been previously identified, to take-up slippage on other schemes. £0.025m for crisis accommodation and £0.044m for building costs associated with the lease of the Wellbeing Centre/Graylaw House.

The total expenditure was £0.314m in 2008/09. The unspent resources will be carried forward in the rephasing of the capital programme.

IT Software

£0.035m was identified for additional requirements for the CareFirst social care information system, particularly to develop the non-residential element. This provision wasn't required in 2008/09 and will be rephased to 2009/10.

Dignity in Care Grant

£0.053m was remaining from this grant in 2008/09 to assist private sector residential care home providers to improve resident's lives by investing in facilities. Several homes were allocated money in 2008/09 and £0.048m of the grant was used, the remainder will be rephased to 2009/10 for one particular provider who couldn't carry out the work in 2008/09.

IT Infrastructure

An £0.080m capital grant was received to invest in upgraded IT facilities for adult social care services. This grant wasn't required in 2008/09 and will be rephased to 2009/10.

York House and Ashlea office bases

Significant spending is required on these two buildings, which are used as office bases though with some provision for service users to meet staff, and £0.425m was included in the 2009/10 programme funded from RCCO. In the event, £0.007m was spent for various preparatory works in 2008/09 but the rest will be incurred in 2009/10 as planned.

C&YP Capital Programme Progress as at 31^st March 2009

Overview of Progress to 31^st March 2009

The table below highlights the key blocks of schemes in the programme

Expenditure
as at
31 March		2008/09	2008/09	2009/10	2010/11
2009	Scheme	Programme	Variation	Programme	Programme
£000		£000	£000	£000	£000

3,538	Early Years	3,396	142	3,363	1,765
2,509	Primary Sector	2,782	(273)	13,041	10,001
2,112	Secondary Sector	2,117	(5)	3,744	2,963
282	Special Sector	236	46	1,638	1,274
1,674	Cross Sector	1,509	165	1,785	2,398
248	Special Educational Needs	690	(442)	1,217	504
312	Other Schemes	309	3	135	0
10,675	Council Controlled Schemes	11,039	(364)	24,923	18,905
3,677	Individual School Schemes	7,252	(3,575)	10,355	2,503

14,352	TOTAL	18,291	(3,939)	35,278	21,408



		2008/09			2010/11
	Resources	£000			£000

	Supported Borrowing
	Ringfenced
	Non Ringfenced	4,073	1,089	5,761	1,611
	Capital Grants	11,766	(3,922)	26,561	15,135
	Unsupported Borrowing	1,825	(1,610)	2,273	0
	External Contributions	407	644	323	426
	Capital Receipts	0	0	0	3,796
	Commuted Sums	0	0	0
	Revenue Contributions (RCCO)	220	(140)	360	440

	TOTAL	18,291	(3,939)	35,278	21,408

Programme Amendments

When the 2009/10 and 2010/11 programmes were last reported, the total value of the programmes stood at £27.810m and £24.440m respectively. The value of the programmes have now changed and as at 31^st March 2009 stand at £35.278m in 2009/10 and £21.408 in 2010/11. The reasons for these changes are analysed below:

Scheme	2008/09 £'000	2009/10 £'000	2010/11 £'000	Funding Source	Reason
Early Years		(142)			Programme reduced to reflect expenditure in 2008/09
Primary Sector		24 (187) 273	34 438	External Contributions Various Sources Various Sources	Additional contributions from schools Virement between sectors Rephased from 2008/09
Secondary Sector	400	130 145 767 5	(130)	Grant External Contributions Various Sources Grant Various	Funding brought fwd from 2010/11 Additional contributions from schools Virement between sectors Additional Grant Rephased from 2008/09
Special Sector		(46)			Programme reduced to reflect expenditure in 2008/09
Cross Sector		856 (630) (165)	(856) (438)	Grant Various Sources	Funding brought fwd from 2010/11 Virement between sectors Programme reduction to reflect expenditure in 2008/09
SEN		156 100 442		Grant Grant Various	New grant Virement between sectors Rephased from 2008/09
Other	58	138 (3)		Grant Unsupported Borrowing Grant	New grant New School Borrowing Programme reduced to reflect expenditure in 2008/09
Individual Schools		2,080 (50) 3,575	(2,080)	Grant Grant Grant	Funding brought fwd from 2010/11 Virement between sectors Rephased from 2008/09
Total	458	7,468	(3,032)

The capital programme controlled by the Council underachieved by just over 3%. This was largely as a result of delayed starts in respect of a few key schemes. In particular addressing legal issues has meant that the start of construction work on the new Reddish North Primary School has been delayed and also there has been a delay in the remodelling scheme at Norbury Hall Primary School.

The majority of the Individual School Schemes relate to projects that schools organise themselves and pay for out of their Devolved Formula Capital Grant (DFC). Under the rules that relate to DFC there is not requirement for a school to spend this grant in the year that it is received as schools are allowed to “save up” this funding for up to 3 years to allow a schools to undertake a larger project than a single year's funding would allow.

Progress on Specific Schemes

Early Years

All Phase 2 Children centres have now been commissioned.

Primary Sector

The following schemes were completed in 2008/09:

All Saints CE Primary School (Marple) - Boiler
Hazel Grove Primary School - Rewire
Hursthead Infants School - Rewire
Hursthead Junior School - Rewire
Ladybrook Primary School - Boiler
Ludworth Primary School - Extension
Mersey Vale Primary School - Air Handling Units Replacement
Norbury Hall Primary School - Boiler
Norris Bank Primary School - Rewire
St Paul's CE Primary School - Roof Refurbishment
Torkington Primary School - Rewire
Whitehill Primary School - Boiler

In addition, the roof refurbishment scheme at Adswood Primary School was substantially completed.

Secondary Sector

The following schemes were completed in 2008/09:

Bramhall High School - Replacement Fan Convector Heaters
Cheadle Hulme High School - Flat Roof Refurbishment Phase 1
Marple Hall High School - Replacement of Fan Convectors
Offerton High School - Alteration to Accommodate the Music Service
Offerton High School - Drainage and Pipework Improvements
Priestnall High School - Fire Alarm
Stockport School - Boiler
Werneth High School - Rewire Phase 1

In addition, Werneth High School received £0.100m to help develop their specialism.

Special Sector

The following schemes were completed in 2008/09:

Moat House - Pram Store
Valley Special School - New Kitchen

Cross Sector

£1.371m was spent on IT facilities in schools

Special Educational Needs (SEN)

Access adaptation work was completed at the following schools: Cheadle Hulme High School, Marple Hall High School and Werneth High School. In addition in excess of £0.1m was spent on specific pupil projects to assist pupils with SEN to access the mainstream curriculum.

Individual Schools

The following extended school schemes were completed in 2008/09:

Hazel Grove Primary School - Extension
Ladybrook Primary School - Parents Room
Lum Head Primary School - Parents Room
St Paul's CE Primary School - Parents Room

2009/10

In order to help to stimulate the local economy, the Government allowed the Council to bring forward into 2009/10 £3.654m of grants originally allocated for 2010/11. This amount was included in the previous report to Members. Since then the Government has allowed the Council to bring forward an additional £0.986m of grant and in addition has advanced 40% of the school's 2010/11 Devolved Formula Capital Grant into 2009/10. This amounts to £2.080m.

Additional resources have been made available in 2009/10 to ensure that the enhanced programme is delivered on target.

Communities Capital Programme Progress as at 31^st March 2009

Overview of Progress to 31^st March 2009

The table below highlights the key schemes in the programme.

Expenditure
as at
31 March		2008/09	2008/09	2009/10	2010/11
2009	Scheme	Programme	Variation	Programme	Programme
£000		£000	£000	£000	£000

28,436	HRA	28,147	289	34,533	23,402

	Strategic Housing
1,476	Disabled Facilities Grant	1,337	139	914	1,053
659	Affordable Housing	660	(1)	1,061
1,102	Renewal	1,256	(154)	2,452	1,075
135	Safer Neighbourhood Allegating	119	16	(16)
3,372		3,372	0	4,411	2,128

	Other
978	Brinnington Shops	1,010	(32)	32
0	Loan to Stockport Homes		0	1,028
157	LAA	157	0	129	129
5	Coroners		5	195
222	First House	222	0	0
1,362		1,389	(27)	1,384	129

33,170	TOTAL	32,908	262	40,328	25,659



		2008/09	Variation	2009/10	2010/11
	Resources	£000	£000	£000	£000

	Supported Borrowing
	Ringfenced	20,786	0	26,199	14,622
	Non Ringfenced	754	0	754	754
	Capital Grants	2,220	5	2,875	1,457
	Unsupported Borrowing	1,308	257	1,841	800
	External Contributions	840	0	0
	Capital Receipts	1,041	0	790
	Commuted Sums		0	0
	Revenue Contributions (RCCO)	5,959	0	7,869	8,026

	TOTAL	32,908	262	40,328	25,659

Programme Amendments

Scheme	2008/09 £'000	2009/10 £'000	2010/11 £'000	Funding Source	Reason
HRA	359			Grant	Use of grant for Birch Court
HRA	35			CYP Grant	Use of grant for Sleddale Close
HRA		5,000	(5,000)	Supported Borrowing	Resources Accelerated
HRA		(289)		RCCO	Programme reduced to reflect expenditure in 2008/09
Disabled Facilities Grant	160			Grant	Additional Grant allocation
Renewal	180			External Contribution	Resources for specific schemes
Renewal	(393)	1,223		Grant	Revised grant allocation
Renewal		1,060			Amendment made as part of the Executive programme
Brinnington Shops	21			Grant	Additional Grant
Brinnington Shops		32		Unsupported Borrowing	Rephased from 2008/09
Coroners		(5)		Grant	Programme reduced to reflect expenditure in 2008/09
First House	22			RCCO
Total	384	7,021	(5,000)

Progress on Specific Schemes

HRA

Expenditure	£
Kitchen and Bathroom Replacements	11,806
Heating Replacements and storage heaters	5,574
Roofing	657
Lift Replacement	132
Rewires	349
Sustainability Works	776
Concierge	480
Property Conversions	1,176
Overcladding and Roofing of Non-Traditional Properties	1,564
Painting	197
DDA Works	509
Carecall	237
Fees	2,730
Miscellaneous works	1,737
Major repairs and contingency	512
Total	28,436

Milestones reached.

During the financial year 2008/09, Stockport Homes Limited continued to concentrate on reducing the number of non-decent homes in the borough. Included in this work are approx 2,000 properties which have had kitchen and bathroom refurbishment works. This worked helped in reaching the target of 17% non-decent homes by the end of March 2009.

Perhaps the greatest milestone reached in 2008/09 is the completion of the conversion of the Birch Court, Marple from a sheltered scheme to an Extra Care Housing scheme. This project proved challenging and required joint working between SHL and SMBC to result in the success it has become.

Another success is the completion of the concierge control room at the Bredbury Technical Services depot. This project has been to upgrade the CCTV and Concierge system at Lancashire Hill. These systems are now controlled from Bredbury in a state of the art control centre. Full completion of this project is expected around September 2009.

Customer satisfaction remains high. Performance against a target of 91%, Stockport Homes Limited reached a year end figure of 93% customer satisfaction for investment works in 2008/09. This figure was based on a response rate of 61%.

Strategic Housing

Disabled Facilities: During the year, 268 grant funded schemes were completed in privately owned and housing association properties. Each scheme has result in one or more major adaptations, (such as the installation of a stairlift or level access shower), being installed for the benefit of a disabled person.

Affordable Housing: These monies, in recent years, have been utilised to match fund bids to the Homes and Communities Agency (formerly the Housing Corporation) to maximise the monies available for new affordable housing schemes. During 2008/09, payments were made as follows:

a) To Guinness Northern Counties Housing Association for completion of the award winning prestigious Mealhouse Brow development

b) To Equity Housing Group, as a stage payment for the Marbury Road scheme, consisting of a mix of disabled adapted bungalows and 4 bed houses for rent, and 2 bed shared ownership houses.

c) To Johnnie Johnson Housing Trust for the completion of a 4 person group home for residents with learning disabilities on London Road

Renewal: These monies are subdivided to fund a range of schemes, including limited targeted grant assistance, for example for the elderly through security and `staying put' works, and environmental and block improvements in the Shaw Heath renewal area. Achievements have included the completion of over 100 properties improved through block schemes, and the well publicised and acclaimed `outdoor gym' in Shaw Heath Park

Alleygating: Although allocated in this year, part of the works and spend were within the previous financial year. The Phase One schemes have now been successfully completed, and work is well underway with the Phase Two programme. Initially feasibility work has also been undertaken on an area basis within Edgeley, which has been suffering particularly from criminal activities associated with the rear alleyways.

Brinnington Shops

Work has continued on the public open space, with completion expected in May. These areas consist of paths, tree & shrub planting, seating & litter bins and lighting but more recently the completion of the arena/central meeting space and all defects to the water feature area and the car parking between First House and Retail block area and the 53 shared ownership homes is anticipated.

LAA / Safer Stronger Communities

New and upgraded IT equipment was required for the Anti Social Behaviour Action Team so they could use the new case management software. The new software is now in use and enables more efficient and coordinated management of anti social behaviour issues.

A £0.010m contribution was made to a high visibility police patrol car which assists with anti social behaviour issues and improves public perceptions of police presence in the community.

The grant of £0.068m given to Victim Support enables recently burgled homes to have physical improvements made to prevent repeat incidences. This combats an identified problem where burgled properties are targeted again after a period of time. Owners of properties receiving the target hardening are less likely to become repeat victims.

£0.049m was spent on Automatic Number Plate Recognition cameras which are used the police to monitor traffic on major routes through Stockport. The cameras assist the police in combating terrorism/violent extremism and other crime and community safety issues. The cameras were not purchased until towards the end of the financial year so the impact of this new equipment is yet to be evaluated.

The acquisition of a Theseus database is a long term solution to improving Drug Intervention Programme compliance with national and local targets. The case management system enables much closer scrutiny of data input by drug workers and treatment progression by clients. The nature of the data input means that the full effect of the new database will not be seen until Quarter 2 of 2009/10 at the earliest.

First House

The acquisition of First House from Brinnington Community First Trust will enable services to continue to be delivered to the community including the library, learning zone and Stockport Advice

Coroners

Expenditure incurred relates to the development of proposals for the refurbishment of Mount Tabor which was expected to start in April 2009. Unfortunately the work that this relates to has suggested a significant increase in potential costs and these are now being re-examined.

Customer Focus Capital Programme Progress as at 31^st March 2009

Overview of Progress to 31^st March 2009

The table below highlights the key schemes in the programme.

Expenditure
as at
31 March		2008/09	2008/09	2009/10	2010/11
2009	Scheme	Programme	Variation	Programme	Programme
£000		£000	£000	£000	£000

177	New Ways of Working	228	(51)	101
68	Contact Centre	210	(142)	211
150	Sharepoint / Unified Communication Platform	170	(20)	130
32	ICT	52	(20)	20

427	TOTAL	660	(233)	462	0



		2008/09	Variation	2009/10	2010/11
	Resources	£000	£000	£000	£000

	Supported Borrowing
	Ringfenced
	Non Ringfenced
	Capital Grants
	Unsupported Borrowing	337	(82)	132
	External Contributions
	Capital Receipts	131	(131)	200
	Commuted Sums
	Revenue Contributions (RCCO)	192	(20)	130

	TOTAL	660	(233)	462	0

Programme Amendments

Scheme	2008/09 £'000	2009/10 £'000	2010/11 £'000	Funding Source	Reason
New Ways of Working		51		Corporate Resources	Rephased from 2008/09
Contact Centre		142		Corporate Resources	Rephased from 2008/09
Sharepoint / Unified Communication Platform		20		RCCO	Rephased from 2008/09
ICT		20		Corporate Resources	Rephased from 2008/09
Total	0	233	0

Progress on Specific Schemes

New Ways of Working

Expenditure at 31 March 2009 is £0.177m compared to a programme of £0.228m. Agreement had been given to rephase £50k against the Marple Oasis ICT enabling works (cabling, additional wifi and VoIP) which are due to be completed later than anticipated due to some unforeseen planning and operational issues and are now on track for completion the first quarter 2009/10. It has also been agreed that this remaining under spend (deferred EED mobile working solution) will also be rephrased.

Key Milestones Achieved 2008/09

Home working community now extended to circa 920 employees.

VoIP has continued to be rolled out following the successful pilot in EED Traffic services. The technology is now used by home workers across the Legal, EED Development Control and Revenues & Benefits service areas. This both supports and facilitates communication across key back office functions and citizen facing service delivery / contact.

New thin client technology (Wyse terminals) with remote real time capability through Orange High Speed data Packet Access (HSDPA) to back office systems successfully piloted and rolled out to circa 200 users across Adult Social Care. Over 150 additional employees within this service have been set up to work from home including around 50 frontline social workers and occupational therapists. This has facilitated greater use of hot desking / flexible working arrangements and a staff to desk ratio on a 2:1 basis on the relocation to the re-furbished 4^th floor Stopford house accommodation.

The establishment of a Marple Oasis - generic drop-in space (reconfiguration of Marple Memorial Park Office) was originally due to have been completed by March 2009. These works are on schedule to be finished during the first quarter of 2009/10 when staff who have relocated from Regal house together with other peripatetic workers will have full access

Additional hardware provision made to the EED M60, Regeneration & Tourisms teams to enable greater working flexibility and release accommodation on lower ground floor Stopford.

WLB funding provision was made to supplement the Capital Investment Grant for the Children's Social Care Team to support the migration to more flexible / mobile working for 100 - 150 frontline social workers. Hardware was trialled by the team during Quarter Two to support investment decision in line with grant timescales. A separate `invest to save' bid is now being drawn up to look at securing funds through the Corporate Capital Group to improving the mobility of these workers through the enablement of the 3G / HSDPA capability of the hardware.

Mobile working pilot involving 15 users within EED EH&TS using HDSPA technology successfully deployed. Mobile working to be extended to an additional 40 users across the service once the pilot outcomes have been fully evaluated.

Accommodation

Ponsonby House vacated in line with the wider corporate accommodation project plan and staff relocated to Stopford.

Release of an additional floor Regal House. Release of the remaining floor in Regal is dependent upon the final decision re: the location of the staff restaurant. This will also inform the relocation of the remaining A&C teams (Strategic Housing and Community Safety) who are currently continuing to work out of Victoria House.

Co-location of the Business Services & C&YP scanning functions to the lower ground floor Stopford House negating the requirement for capital expenditure at other estate locations under consideration. The co-location of these functions is a key initial phase in the wider Information Management Strategy NWOW strand.

New Ponsonby House user group established. Utilisation studies sponsored by the WLB programme will help inform the accommodation design and complement the accommodation efficiencies enabled by the WLB programme investment.

Employee Sickness Absence

Sickness absence across the home working control groups during 2008 (up to Quarter Three) is continuing to outturn significantly lower than the wider service area and directorate teams and remains in line with the reported achievements detailed in the Work Life Balance End stage Report (June 2008) and reports to Scrutiny (November 2008).

Contact Centre

The rolling programme is continuing to replace all PC's. Also a new Workforce Management System has been implemented to match staffing requirements against demand for service.

Sharepoint/ Unified Communications Platform

This is a key part of Information Management Strategy and is all about one version of data which is easily and consistently available to all the relevant users. This will work in conjunction with the intranet, current email and telephone systems to bring a single view of both data and staff resources.

Expenditure in 2008/09 was to procure the Microsoft licences to enable the implementation of the scheme. The licences were procured at a time when the council was under the Enterprise Agreement in order for us to secure a significant discount over buying a collection of individual licences. The licensing structure requires separate licences for each server which hosts part of the solution as well as a separate client access licence for each PC.

ICT

This is a general scheme where expenditure is to contribute to a project where the server environment will be virtualised. The intention is to try and reduce the number of servers from an excess of 200 to around 50. This will greatly reduce electricity and cooling requirements to both contribute to the council's green priority area and reduce running costs.

Environment Capital Programme Progress at 31^st March 2009

Overview of Progress to 31^st March 2009

Expenditure
as at
31 March		2008/09	2008/09	2009/10	2010/11
2009	Scheme	Programme	Variation	Programme	Programme
£000		£000	£000	£000	£000

0	Rosehill Household Waste Recycling Facility			398	12
501	Waste Collection	501	0	3,958	1,823


501	TOTAL	501	0	4,356	1,835



		2008/09	Variation	2009/10	2010/11
	Resources	£000	£000	£000	£000

	Supported Borrowing
	Ringfenced
	Non Ringfenced
	Capital Grants
	Unsupported Borrowing	501	0	4,356	1,835
	External Contributions
	Capital Receipts
	Commuted Sums
	Revenue Contributions (RCCO)

	TOTAL	501	0	4,356	1,835

Programme Amendments

No amendments

Progress on Specific Schemes

Waste Collection

A full review of the cash limited budget for Waste Collection has been carried out in view of the new waste collection strategy which will be implemented over the next 3 years. The cost associated with prudential borrowing for procurement of the 3 bins, blue, brown and black is included in the cash limit and profiled across the rollout period. At the end of the rollout period over 100,000 properties will have separate collection for dry recyclables, food and garden and residual.

Finance Capital Programme Progress as at 31^st March 2009

Overview of Progress to 31^st March 2009

The table below highlights the key schemes in the programme.

Expenditure
as at
31 March		2008/09	2008/09	2009/10	2010/11
2009	Scheme	Programme	Variation	Programme	Programme
£000		£000	£000	£000	£000

2,019	Stopford House	2,486	(467)	764
1,261	Asset Management Plan	867	394	1,126
0	PIF Unallocated		0	625	500
1,478	LAMP	1,447	31	(31)
0	ERP Phase II		0	331	1,500


4,758	TOTAL	4,800	(42)	2,815	2,000



		2008/09	Variation	2009/10	2010/11
	Resources	£000	£000	£000	£000

	Supported Borrowing
	Ringfenced
	Non Ringfenced
	Capital Grants	29	0	385
	Unsupported Borrowing	4,718	(42)	2,430	2,000
	External Contributions	3	0	0
	Capital Receipts		0	0
	Commuted Sums		0	0
	Revenue Contributions (RCCO)	50	0	0

	TOTAL	4,800	(42)	2,815	2,000

Programme Amendments

Scheme	2008/09 £'000	2009/10 £'000	2010/11 £'000	Funding Source	Reason
AMP	29			Grant	Additional energy grant received to contribute to energy saving schemes
AMP	3			External Contribution	Contributions from schools to repay energy conservation schemes
AMP		(394)			Programme reduced to reflect expenditure in 2008/09
Stopford House		467			Rephased from 2008/09
Unallocated		(1,220)	(460)	Capital Receipts	Deleted as part of the Executive programme.
LAMP		(31)			AMP programme reduced to reflect expenditure in 2008/09
LAMP	50			RCCO	EED Contribution to the LAMP Scheme
Total	82	(1,262)	(460)

Progress on Specific Schemes

Stopford House

The refurbishment of Stopford House 2^nd Floor South End was completed on 13^th December 2008 and the 4^th Floor completed on 13^th March 2009. This now completes the office refurbishment of Stopford House (excluding the existing canteen area)

The tenders for the refurbishment of the toilet areas have now been evaluated and negotiations are in place with the successful contractor to determine overall programming. It is anticipated that a start on site will be achieved at the end of May 2009.

Stopford House Lift North End replacement is now complete and is in defects liability period.

Asset Maintenance Plan

All condition surveys are now completed for Year 1 of the planned 5 Year programme.

Bramall Hall Fire Alarm Installation works are now complete.

Bredbury Library Fire Alarm Installation works are now complete.

Works to create the `Oasis' at Marple Council Offices is now well under way with the order for furniture being placed in readiness for handover. Remedial works, however, are now necessary due to rain ingress following the theft of lead from the roof. Planning approval has been obtained for the follow up works for the entrance upgrade.

The DDA works at Etherow and Bramall are now underway and have a completion date of 6^th April 2009.

LAMP

The LAMP scheme is very near to completion, with the Land Charges element of the project expected to be signed off in May 2009.

Leisure Capital Programme Progress as at 31^st March 2009

Overview of Progress to 31^st March 2009

The table below highlights the key schemes in the programme.

Expenditure
as at
31 March		2008/09	2008/09	2009/10	2010/11
2009	Scheme	Programme	Variation	Programme	Programme
£000		£000	£000	£000	£000

804	Pavillion at William Scholes Playing Field	957	(153)	172
504	Bradshaw Hall Playing Fields	504	0	19
253	Schemes to be funded from NNDR Savings	400	(147)	547	400
0	Bramhall Hall		0	300
7	Refurbishment of Walls Bramhall Park		7	93
36	Cemeteries Infrastructure	15	21	29
6	Libraries ICT	11	(5)	5
40	Schemes in Parks	40	0	40	40
58	Security In Parks	58	0	0	0
291	PIF	291	0	75
14	Other	17	(3)	3
0	Offerton Community Play Facilities			195

2,013	TOTAL	2,293	(280)	1,478	440



		2008/09	Variation	2009/10	2010/11
	Resources	£000	£000	£000	£000

	Supported Borrowing
	Ringfenced
	Non Ringfenced	15	0	0
	Capital Grants	968	(82)	176
	Unsupported Borrowing	602	39	1,046	440
	External Contributions		0	0
	Capital Receipts	264	(166)	166
	Commuted Sums	386	(71)	90
	Revenue Contributions (RCCO)	58	0	0

	TOTAL	2,293	(280)	1,478	440

Programme Amendments

Scheme	2008/09 £'000	2009/10 £'000	2010/11 £'000	Funding Source	Reason
Pavillion at William Scholes Playing Field		153		Capital Grant /corporate resources	Rephased from 2008/09
Bradshaw Hall Playing Fields	93	19		Capital Grant	Additional grant
Schemes to be funded from NNDR Savings		147		Unsupported Borrowing	Rephased from 2008/09
Refurbishment of Walls Bramhall Park		(7)		Unsupported Borrowing	Programme reduced to reflect expenditure in 2008/09
Cemeteries Infrastructure		(21)		Corporate Resources	Programme reduced to reflect expenditure in 2008/09
Security in Parks	58			RCCO	Revenue contribution to specific scheme
Libraries ICT		5		Corporate Resources	Rephased from 2008/09
Other		3		Corporate Resources	Rephased from 2008/09
Total	151	299	0

Progress on Specific Schemes

Pavilion at William Scholes Playing Fields

Construction of the new pavilion at William Scholes Playing field commenced on site in August 2008. The scheme brief involved building a new multi use six changing room pavilion, ancillary facilities and car parking in addition to the demolition of the existing pavilion.

Of the capital costs to implement the scheme, the Football Foundation agreed to grant aid the scheme £0.489m.

The project has been delivered within programme and on time. The completed building was handed over to the Council in March 2009 and has been used by footballers, athletes and cricketers. Positive feedback has been received from the users of the new pavilion and an official opening is scheduled for Summer 2009

NNDR Savings including refurbishment at Target Fitness + Cheadle

Refurbishment work at Target Fitness + Cheadle which commenced in 2008/09 has been completed and was officially open in August 2008.

The refurbishment has resulted in new village changing accommodation serving the pools at the facility; a crèche, soft play area for children and improved reception facilities. The improvements have been welcomed by centre users.

Bradshaw Hall Playing Fields

Construction of the facilities at Bradshaw Hall playing fields is completed and final handover from the architects is anticipated by the end of May. Some minor works including landscaping are to be completed in 2009/10.

The revised cost for the scheme is £0.523m. As the Football Foundation have confirmed that the total grant award is £0.266m the programme has been adjusted accordingly.

Refurbishment of Walls at Bramhall Park

The expenditure incurred in 2008/9, earlier than anticipated relates to preparatory work that needed to be carried out ahead of the bird nesting season, which runs from the end of February to the end of July. The remainder of the work will be undertaken in 2009/10 as planned.

Cemeteries Infrastructure

The majority of the funding has been used to construct new burial sections and headstone foundations, primarily in Mill Lane Cemetery and to ensure burial provision for the Muslim and Jewish communities. .

Libraries ICT

All `Peoples Network Computers' have been replaced as planned and the scheme is now complete.

Schemes in Parks

The new multi use games area in St Thomas Park; project now complete

Security in Parks

This expenditure relates to the acquisition of vehicle and mobile CCTV equipment.

PIF

The PIF funded project to relieve poor drainage in Woodbank Park is fully complete and all agreed projects regarding installation of new play facilities now complete.

Regeneration Capital Programme Progress as at 31^st March 2009

Overview of Progress to 31^st March 2009


Expenditure
as at
31 March		2008/09	2008/09	2009/10	2010/11
2009	Scheme	Programme	Variation	Programme	Programme
£000		£000	£000	£000	£000

236	St Peters Square Phase 1 & 2	77	*159
243	St Peters Square Phase 3	0	243	257
47	Town Centre (Rivers)	27	20	19
6	Gateway Facelifting	131	(125)	125
1,558	Covered Market	1,341	*217	0
22	Town Centre Land Prep	28	(6)	6
275	THI Hillgate	684	(409)	409
95	Loan to Stockport Incubator CIC	95	0	0
0	Support for Plaza HLF Bid		0	300
73	District Centres	96	(23)	48
2	Stockport Story Fit Out	2	0	0

2,557	TOTAL	2,481	76	1,164	0
	*Unfunded overspends		376
	Re-phasing to 2009/10		(300)


		2008/09	Variation	2009/10	2010/11
	Resources	£000	£000	£000	£000

	Supported Borrowing
	Ringfenced
	Non Ringfenced	100	0
	Capital Grants	1,465	(316)	355
	Unsupported Borrowing	786	16	413
	External Contributions			0
	Capital Receipts	130	0	396
	Commuted Sums
	Revenue Contributions (RCCO)

	TOTAL	2,481	(300)	1,164	0

Programme Amendments

Scheme	2008/09 £'000	2009/10 £'000	2010/11 £'000	Funding Source	Reason
Loan to Stockport Incubator CIC	95			Unsupported Borrowing	Short term loan provide to overcome temporary cashflow problems.
St Peters Square Phase 1 & 2	100			Supported Borrowing	Contribution from Transport Portfolio
St Peters Square Phase 1 & 2	108			Corporate Resources	Transferred from Adswood Local Centre scheme
St Peters Square Phase 3		(243)		Corporate Resources
Town Centre (Rivers)		(20)
Gateway Facelifting		125		Corporate Resources
Town Centre Land Prep		6		Corporate Resources
THI Hillgate		409		Capital grant
District Centres		23		Corporate Resources
Adswood Local Centre	(108)			Corporate Resources	Transferred to St Peters Square scheme
Total	195	300	0

Progress on Specific Schemes

St Peters Square / Town Centre

The St Peters Square Scheme is divided into three phases with Phases 1 and 2 completed in 2008/09 and Phase 3 due for completion in 2009/10.

Phase 1 & 2

There is an overall overspend of £0.367m for Phase 1 and 2 of the project. Part of this overspend has now been covered by resources which have been transferred from Adswood Local Centre £0.108m (see below) and from unallocated 2009/10 resources within the Transportation Portfolio £0.100m. This leaves a net unfunded variation of £0.159m and it is recommended that additional unsupported borrowing of £0.159m is approved, with the additional revenue costs to be met from the portfolio cash limit.

Detailed analysis has revealed the following reasons for the £0.367m overspend:

	£000
Additional Work
Row Paving and Lighting	51
Additional CCTV link & Ducting to Stopford House	83
Fees for Engineering work not included in the original estimate, estimate on construction costs only	63
Miscellaneous additional works, landscaping, skate stoppers & pop up power units	25
Total additional work	222

Increased Costs including unforeseen ground conditions, additional site accommodation & storage.	145

Total	367

Phase 3

Expenditure in 2008/09 included £0.236m for works relating to Phase 2. The 2009/10 programme of £0.500m will be adjusted to reflect this expenditure. At the next meeting of the project board, the expenditure incurred to date and estimates for the outstanding works are to be considered in detail.

The Adswood Local Centre

This capital allocation related to a variety of highway, security, environmental and building projects carried out several years ago within the Adswood local centre. All works planned have been completed and funded by a variety of sources leaving a surplus of resources which can be utilised to fund the St Peters project deficit.

Town Centre (Rivers)

The milestones for the Rivers scheme included the identifying and agreeing areas of work and completion of schemes by March 2009.

Outputs achieved were improvements in riverside access and some environmental improvements including:

Improvements at the start of the River Mersey Canoe trail at Ford Street
Facelift improvements in Knightsbridge
Facelift improvements at Newbridge Lane (tree work and planting)
Production of Penny Lane ecology report
Archaeological Desk Top study
Mersey Vale Nature Park tree planting

Gateway Facelifting

Hat Works - Design work in relation to the lighting scheme for the chimney was undertaken.

St Peter's Churchyard - An enhancement scheme for the churchyard was designed by December 2008 and the work has now been completed.

Markets/Underbanks Entrance Features - The initial concepts for this scheme were prepared March 2009.

Covered Market

Expenditure as at 31^st March 2009 was £1.558m compared to a programme of £1.341m, an overspend of £0.217m.

The reasons for the overspend include:

	£000
Additional Works to the Contract
Painting Roller Shutters	34
Market Traders fit out of stalls	20
Automatic Door Closures (DDA Compliance)	12
Additional Health & Safety Works	10
Preliminary survey work & services work e.g. gas connection/ drainage survey	5
Total additional work	81

Additional unanticipated works including discovery and treatment of the archaeology and additional repair work required throughout the programme due to greater than anticipated decay and deterioration of the timber work.	136

Total	217

It is proposed that Executive approve that this overspend is funded by unsupported borrowing, with additional revenue costs to be met from the portfolio cash limit.

The invoices for the final payment to the contractor and final professional fees are still outstanding and payment will be required in 2009/10. An update of the final contract sum will be provided in the Quarter One monitoring report.

THI Hillgate

The scheme was completed in September 2008 with the exception of the Peaches project, which is due to complete in September 2009.

Loan to Stockport Business Incubator CIC

Stockport Business Incubator CIC was established in 2008 and is charged with the provision and management of business incubator units in order to help stimulate the local business community and to develop high growth, innovative new businesses. The CIC, which is 50% owned by the Council, requested a loan of £0.095m from the Council in order to overcome a temporary cash flow problem. The loan request was for a maximum period of three months, until the repayment of its first VAT claim by HMRC which had been delayed due to administrative errors relating to this being a new company. The VAT payment was received in late February 2009 and the loan subsequently repaid in full, with interest, to the Council.

District Centres

The expenditure relates to installation of 335 traditional festive displays in 8 Centres and 8 Key Local Centres. The capital expenditure was required to meet the additional and unexpected requirements of the changes in Electrical Installation legislation resulting in the need to invest in additional safety equipment.

Transportation Capital Programme Progress at 31^st March 2009

Overview of Progress to 31^st March 2009

The table below highlights the key schemes in the programme

Expenditure
as at
31 March		2008/09	2008/09	2009/10	2010/11
2009	Scheme	Programme	Variation	Programme	Programme
£000		£000	£000	£000	£000

2,074	LTP Integrated Transport	2,074	0
5,017	SEMMMS Integrated Transport Element	5,017	0
50	PIF	50	0
1,713	Structures	1,713	0
502	Dan Bank Slope Stabilisation	502	0
2,264	Highways Maintenance	2,264	0	500	500
2,176	Invest to Save	2,176	0	2,500	1,500
48	Merseyway Car Park	48	0	1,000
304	Other/unallocated	507	(203)	9,583	11,266

14,148	TOTAL	14,351	(203)	13,583	13,266



		2008/09	Variation	2009/10	2010/11
	Resources	£000	£000	£000	£000

	Supported Borrowing
	Ringfenced
	Non Ringfenced	2,784	0	2,162	2,601
	Capital Grants	6,843	(400)	8,118	8,665
	Unsupported Borrowing	1,942	197	3,303	2,000
	External Contributions	1,605	0	0
	Capital Receipts	500	0
	Commuted Sums	677	0	0
	Revenue Contributions (RCCO)

	TOTAL	14,351	(203)	13,583	13,266

Amendments to the Programme

Scheme	2008/09 £'000	2009/10 £'000	2010/11 £'000	Funding Source	Reason
Various		203		Various	Rephased from 2008/09
Various	905 677 50			External Contributions Commuted Sums Unsupported Borrowing	Additional resources to finance specific schemes
Invest to Save		500	(500)	Capital Grant Unsupported Borrowing	Acceleration of scheme. CYP grant to be used in 2009/10 and to be replaced by Unsupported Borrowing in 2010/11
Integrated Transport	100 (100)	(100)			Transfer from 9/10 to 8/9 and to the Regeneration Portfolio.
Total	1,632	603	(500)

Progress on Specific Schemes

Bridges / Structures

Dan Bank - Phase 1 Slope Stabilisation

Year 1 of programme completed. Ecological and environmental studies and design option appraisal work. Full allocation spent.

Other Bridgeworks

Old Hall farm - Scheme complete
Hollywood Bridge - Scheme complete
Brookfield House Culvert - Scheme complete
Springswood Culvert - Main scheme moved to 2009/10, design work and SI work in 2008/09.
Merseyway Concrete repairs - Works in November 2008 / March 2009

Retaining Wall - Year 1 works

Design and construction work on 5 Retaining Walls
Design work on 7 walls

Highways Maintenance

We have successfully delivered all schemes.

Integrated Transport

The programme is on track, schemes are being completed on time. A number of schemes are due to continue past year end.

ITCs

Work is continuing on the Hyde and Didsbury corridors. It has been completed on the Reddish corridor and at the Gatley crossroads.

SEMMMS

Marple, Hollins Lane / Chadwick Street

Chadwick street car park phase has been completed

Woodley Precinct

An additional phase was successfully brought forward to commence construction to one of the car parks near to the Medical Centre, which included some resurfacing to the access roads.

Hazel Grove

Work on both of the car parks is complete.

Cycling and Walking Schemes

Have been delivered across the council in accordance with the programme and work is continuing on the connect II project.

Local Safety Schemes

Local safety programme has been delivered.

Hillgate and Market Place

Both schemes were completed.

Milestones since last report

Bridges / Structures

Old Hall Farm Bridge complete
Hollywood Bridge complete
Brookfield House culvert complete
Great Egerton Street Bridge - Phase 1 programme completed
Roman Bridge scheme completed.
5 Retaining wall reconstruction schemes undertaken
Steps programme completed.
Slope inventory completed.

Highways Maintenance

The schemes delivered during the year are as follows:-

I2S Footway Programme

Footway improvements 34no

Footway slurry seal 8no

Carriageway Preventative Programme

C/way surface dressing 19no

C/way micro asphalt 6no

Carriageway Structural Programme

C/way resurfacing 18no

Integrated Transport

General Scheme Progress

The progress of schemes through the feasibility stages and on to design has been very good and many of the schemes have now gone through detailed design and released on time to commence construction. There has been a big emphasis on works in the final quarter, but these have all been delivered or catered for in the following year's programme with re-phasing of schemes and funding.

Bridges / Structures

Five year retaining wall programme is waiting to be approved which would allow 55 retaining wall reconstruction / strengthening schemes to be delivered

Appendix 4

Prudential Indicators

Prudential Indicator	2008/09 Estimate	2008/09 Actual
Capital Expenditure	£'000	£'000
Non - HRA	42,910	43,981
HRA	29,111	28,436
TOTAL	72,021	72,327

Ratio of financing costs to net revenue stream	%	%
Non - HRA	6.92	6.46
HRA	7.74	7.74

Capital Financing Requirement as at 31 March 2009	£'000	£'000
Non - HRA	222,562	230,141
HRA	105,924	101,264
TOTAL	328,486	331,405

Incremental impact of new capital investment decisions on council tax	£ p	£ p
Non - HRA	0.17	0.17
Incremental impact of new capital investment decisions on HRA rents	£ p	£ p
HRA	0.00	0.00

EXPLANATION OF TERMS

Supported Capital Expenditure Revenue - Non Ring Fenced

The Government will include within the Formulae Spending Share for Capital Financing, the capital financing costs of the borrowing for this element of the capital programme. The Council can spend the money on any capital scheme. However, experience shows that particularly in Housing, Education and Transport, if expenditure significantly departs from the guidelines, the individual Government Department reduces future funding if expenditure is lower than the guideline.

Supported Capital Expenditure Revenue - Ringfenced (or specific)

The Government will include in the Formulae Spending Share for Capital Financing, the capital costs of the borrowing for this element of the capital programme. This borrowing is given for specific services and cannot be transferred to another service.

Supported Expenditure Capital

The government have identified particular areas where the support for capital expenditure will be made by way of a capital grant. Currently where grants are made they can only be used for the purposes for which they are given and are therefore ringfenced.

Other Capital Grants

The Council receives grants from many sources for capital purposes. These include English Heritage and National Lottery Funds. These can only be used within the parameters set by the grants making organisation.

Capital Receipts

Sale of Council Houses and Repayment of Mortgage Advances - 75% of the receipts have to be paid over to the Government, 25% are retained by the Council as General Fund Receipts and can be used by any service.
Sale of HRA Land - 50% of the sale of council housing land can be utilised for any project. The balance is paid over to the Government.
Sale of general council land - 100% of the sales of other land can be utilised on any projects.

Revenue Contributions

The Council can make contributions to fund capital from its revenue budget. Specific revenue contribution can be made from earmarked reserves, the Council's share of the Standards Fund and the major repairs allowance received through Housing Subsidy.

Commuted Sums

Cash contributions received from developers that must be utilised for a specific capital purpose.

AGENDA ITEM 13