Item: 6 Page: 107 Business Services & Infrastructure Services REPORT TO ABERDEENSHIRE COUNCIL – 27 JUNE 2019 NON-HRA CAPITAL BUDGET 2018/19 FINAL OUTTURN REPORT 1. Recommendations 1.1 The Council is recommended to approve:- 1 The unaudited outturn position for 2018/19 referred to at paragraph 2.1, giving new totals for expenditure and income of £84,999,000 and £34,017,000 respectively; and 2 The proposed changes to the capital budget for 2019/20 as referred to at paragraph 2.6. 2. Overall Capital Expenditure and Outturn 2.1 In 2018/19 the Council’s revised budgeted capital expenditure forecast amounted to £96,587,000. Actual expenditure was £84,999,000, or £11,588,000 (11.99%) lower than anticipated. Analysis of this position is detailed in appendices 1 and 2. 2.2 The variance between budgeted and forecast expenditure can be analysed as follows: Delays to planned expenditure £ (24,717,000) Accelerations to projects £ 2,382,000 New expenditure £ 884,000 Grant Funded expenditure £ 4,044,000 Capital from Current Revenue (CFCR) £ 390,000 Revenue Funded from Borrowing £ 5,429,000 Total Variance £( 11,588,000) 2.3 Variations are detailed in Appendices 1 and 2. Appendix 1 summarises the position by Service and Appendix 2 shows, in the column headed “Variance 2018/19”, the position for individual projects. Where there is a significant variation of £100,000 or greater, details are provided in a note in Appendix 3. 2.4 In 2018/19, capital expenditure of £84,999,000 was financed by a combination of borrowing, capital receipts, use of reserves including previously unapplied receipts, and supplemented by direct revenue financing, also known as Capital From Current Revenue (C.F.C.R). CFCR amounting to £2,623,000 is reported. In addition, expenditure identified in service revenue budgets that met the capital definition amounted to £11,519,000 and was financed from cash and borrowing instead of revenue taking into consideration the Council’s Medium-Term Finance Strategy. Further details are included in Appendix 4. 2.5 Details of the position for each Strategic Priority are given in Appendix 2 to this report. Item: 6 Page: 108 2.6 The effect of the proposed changes on 2019/20 is to increase budgeted expenditure by £21,067,000 and to increase financing by £2,689,000. Use of Cash and Prudential Borrowing in 2019/20 will increase by £18,378,000. 2.7 All Services have been consulted via the capital budget monitoring process and their comments and adjustments have been incorporated into this report including the relevant appendices and supporting papers. 2.8 The Monitoring Officer within Business Services has been consulted and is in agreement with the report. 3. Scheme of Governance 3.1 The Council is able to consider and take a decision on this item in terms of the general powers conferred by Section A of the List of Committee Powers in Part 2A of the Scheme of Governance. This report relates to revising the annual estimates of the Capital budget agreed under Section A.8.1 of Part 2A. 4. Implications and Risk 4.1 An Equalities Impact Assessment and a Town Centre Impact Assessment are not required for this report as the report deals with the monitoring of expenditure against budgets which have been approved previously, and the reprofiling of some expenditure. 4.2 The revenue budgets for financing costs in 2019/20, 2020/21, 2021/22, 2022/23 and 2023/24 are £30,340,000, £34,706,000, £34,800,000, £35,459,000 and £35,459,000 respectively. 4.3 The charges against these budgets will come from the financing costs associated with debt outstanding at 31 March 2019 plus the debt associated with capital spending in 2018/19 onwards. 4.4 There are no staffing implications arising directly from this report. 4.5 The following Risk has been identified as relevant to this matter on a Strategic Level: Balancing the Books (Directorate Risk Registers). Ritchie Johnson Stephen Archer Director of Business Services Director of Infrastructure Services Report prepared by Chris Smith and John Lovie 11 June 2019 Item: 6 Page: 109 NON-HRA CAPITAL 2018/19 FINAL OUTTURN APPENDIX 1 Original Budget Revised Final Changes Full Council 8/2/18 Budget Outturn Variance to Future 2018/19 2018/19 2018/19 2018/19 Years Note £000 £000 £000 £000 £000 TOTAL EXPENDITURE Strategic Priorities 96,244 91,637 81,159 (10,478) 19,957 Grants to Outside Bodies 2,087 2,500 1,643 (857) 857 City Region Deal 4,560 2,450 2,197 (253) 253 Optimism Bias (2,729) 0 0 0 0 Total Financing 100,162 96,587 84,999 (11,588) 21,067 FINANCING Scottish Government - General Capital Grant 37,135 18,721 18,721 0 0 - Specific Grant - Cycling and Walking 357 357 357 0 0 - SFT Funding - Inverurie Community Campus 10,803 0 0 0 0 - Early Learning Childcare (1140 Hours Projects) Capital Funding 0 900 550 (350) 350 1 Other Grants 1,457 5,982 9,054 3,072 1,771 2 - Kintore Station - Nestrans Contribution 0 110 110 0 0 Internal Financing - Capital From Current Revenue 2,278 2,233 2,623 390 0 3 - Reserves and Medium Term Financial Strategy (City Region Deal) 3,917 0 0 0 0 Sales 4,722 3,170 2,602 (568) 568 4 60,669 31,473 34,017 2,544 2,689 Cash & Prudential Borrowing 39,493 65,114 50,982 (14,132) 18,378 5 Total Financing 100,162 96,587 84,999 (11,588) 21,067 Item: 6 Page: 110 Original Budget Revised Final Changes APPENDIX 2 Full Council 8/2/18 Budget Outturn Variance to Future 2018/19 2018/19 2018/19 2018/19 Years EXPENDITURE £000 £000 £000 £000 £000 BUSINESS SERVICES Development of Industrial Portfolio & Factory Units 5,341 2,000 2,133 133 14 6 Cleaning (previously named Public Toilets) 115 90 86 (4) 4 Information Communications Technology 1,450 1,557 1,763 206 (206) 7 Legal and Governance System Software 0 72 0 (72) 72 Buchan House - Police Office Extension 467 50 94 44 (44) Depots 5,352 4,201 4,361 160 (160) 8 Health and Safety - Council Wide Objectives 500 500 525 25 (25) New Council Office (Previously on Plan as Workspace - Inverurie) 312 400 408 8 (8) Planned Maintenance - Council Wide Objectives 2,500 2,000 3,332 1,332 (1,204) 9 Workspace 2,702 994 843 (151) 151 10 Workspace - Saltoun Square Fraserburgh 0 600 614 14 (14) Carbon Reduction - Council Wide Objectives 800 996 565 (431) 431 11 Business Services Total 19,539 13,460 14,724 1,264 (989) COMMUNITIES Adult Social Work Learning Disabilities - Adaptation Centres 70 132 7 (125) 125 12 Blythewood Care Home (aka Bennachie View) 0 0 2 2 0 New Care Home (North) 250 20 0 (20) 20 Social Work - Minor Works 73 183 44 (139) 139 13 Housing Disabled/Elderly Housing Adaptations (Private Sector Housing Grant) 915 900 718 (182) 182 14 Sport & Leisure Management Banff & Macduff Sporting Facilities 0 0 15 15 0 Banchory Sports Village (Community Sports Facility, Hill of Banchory) 6,024 7,939 6,886 (1,053) 1,053 15 Communities Total 7,332 9,174 7,672 (1,502) 1,519 Item: 6 Page: 111 Original Budget Revised Final Changes APPENDIX 2 Full Council 8/2/18 Budget Outturn Variance to Future 2018/19 2018/19 2018/19 2018/19 Years EXPENDITURE £000 £000 £000 £000 £000 EDUCATION & CHILDREN'S SERVICES Westfield Community Hub 0 30 25 (5) 5 Portlethen/Hillside PS Causeymounth Road Upgrading Works 100 243 92 (151) 151 16 Early Learning Childcare (1140 Hours Projects) 0 150 550 400 (400) 17 Early Learning Childcare (Children & Young Peoples Bill) 805 2,000 2,064 64 43 ECS Enhancements 4,406 4,218 3,534 (684) 684 18 Ellon Academy 0 0 86 86 0 Improved Disabled Access ( Education) 400 711 525 (186) 215 19 Inverurie Community Campus 23,036 353 314 (39) 39 Kinellar Primary School 2,825 2,455 2,216 (239) 239 20 Kintore Primary School 0 447 39 (408) 408 21 Markethill PS Replacement 0 302 132 (170) 170 22 Mearns Academy 0 0 69 69 0 MUGA Dales Park Peterhead 0 0 3 3 0 PFI Lifecycle Replacement (CFCR) 2,233 2,233 2,239 6 0 School Meals P1-P3 0 28 53 25 28 Uryside Primary School 0 500 110 (390) 390 23 Capital Funded from Current Revenue (CFCR) 0 0 42 42 0 Scalloway Park Children's Home 0 0 24 24 0 Support for Learners 150 161 235 74 (40) Education & Children's Services Total 33,955 13,831 12,352 (1,479) 1,932 Item: 6 Page: 112 Original Budget Revised Final Changes APPENDIX 2 Full Council 8/2/18 Budget Outturn Variance to Future 2018/19 2018/19 2018/19 2018/19 Years EXPENDITURE £000 £000 £000 £000 £000 INFRASTRUCTURE SERVICES Planning Access/Environment Projects 50 185 87 (98) 134 Capital From Current Revenue (CFCR) 0 0 609 609 0 24 Museum of Banff & Silversmithing Project 0 0 14 14 0 Uryside Meadows Paths 0 0 143 143 0 25 Roads, Landscape Services, and Waste Management Harbours, Coast & Flooding 5,118 2,147 1,619 (528) 528 26 Stonehaven Flooding Scheme 0 1,738 1,225 (513) 513 27 Aberdeen Western Peripheral Route 0 18,673 4,770 (13,903) 13,903 28 Aberdeen Western Peripheral Route (Funded from Nestrans) 0 46 0 (46) 46 Bridges & Structures 2,635 2,950 2,622 (328) 347 29 Cycling and Walking 673 1,906 1,137 (769) 604 30 Drainage 0 1,000 793 (207) 207 31 Energy From Waste 0 0 622 622 (622) 32 Nestrans Contribution 1,172 1,600 925 (675) 675 33 Quarries 260 0 0 0 0 Roads Resurfacing/Reconstruction 8,750 8,841 9,698 857 6 34 Safety Initiatives 644 927 734 (193) 193 35 Storm Frank Works Funded By Grant - Bridges and Flooding 0 434 262 (172) 172 36 Street Lighting 1,400 1,854 1,678 (176) 176 37 Landfill, HWRC 1,000 1,268 2,858 1,590 222 38 Parks & Open Spaces 600 1,018 952 (66) 400 Transportation Public Transport 3,916 597 401 (196) 38 39 Kintore Station 0 110 110 0 0 Vehicles 4,179 4,922 5,111 189 (189) 40 Travellers Sites Greenbanks Travellers Site 0 358 2 (356) 356 41 Gypsy/Traveller's Transit Site 0 0 65 65 0 Burial Grounds