Portfolio: All
Executive
18 May 2005
Financial Issues Report
City Treasurer, Chief Executive’s Office Report by:
Ward Implications: All
For Decision
Summary (and Community Implications) 1.
1.1 This report sets out new capital schemes that have been identified since the
Financial Issues Report in April and changes to the capital programme since
it was last reported.
The report also seeks approval for a loan of ?870,000 to the Theatre Royal,
funded by Prudential Borrowing. The loan will be repaid by a first call on
existing City Council Revenue support to the Theatre.
The new capital schemes will bring a wide range of community benefits.
Recommendation 2.
2.1 Approve the inclusion of new schemes and changes to existing schemes into
the capital programme as outlined in Appendix A; 2.2 Approve the buy out of the lease at High Friars, Eldon Square, for the sum of
?34,000 - to be financed by a loan from the Corporate Resource Pool, as set
out in paragraph 3.2
2.3 Approve a loan of ?870,000 to the Theatre Royal, as set out in paragraph
3.3. The loan is to be taken over up to 25 years and will be financed through
Prudential Borrowing. Repayments will be met from existing City Council
Revenue support to the Theatre.
2.4 Note the item on the allocation of Area Committee budgets at paragraph 3.4
for information only.
Financial Issues 3.
Capital Programme variations 3.1
3.1.1 Appendix A summarises a range of amendments, which if approved would
result in a net increase in the 2005-06 programme of ?9.714m. 3.1.2 The key changes are:
Education & Libraries – An amount of ?1.159m is included for the extension
to the Galafield Play and Community Facility to build a Children’s Centre with
49 full day care places. The scheme is funded by SureStart Newbiggin Hall
Local Programme and SureStart Children’s Centre programme.
YHN – Schemes totalling ?5.974m have slipped from 2004-05. This was
partly offset by re-phasing back into 2004-05 of ?0.678m. Schemes have
also slipped into 2006-07 totalling ?1.629m.
New schemes amounting to ?1.196m are to be financed from borrowing,
including ALMO resources.
Social Services – Schemes totalling ?1.220m have slipped from 2004-05.
City Service - Schemes totalling ?2.696m have slipped from 2004-05.
The slippage in the programme will not result in any loss of funding.
Eldon Square High Friars Unit 3.2
3.2.1 Capital Shopping Centres are recommending that the Partners pay a capital
premium of ?85,000 (the Council’s 40% share being ?34,000) to obtain the
surrender of a lease at High Friars. The unit would then be let for 15 years to
the adjoining tenant at a combined rental of ?260,000 per annum (?81,000
higher than the existing two base rentals of ?179,000). The council would
receive ?104,000 per annum as equity rent.
3.2.2 The council share of the capital premium would be funded by CRP Loan.
Theatre Royal development, 5-7 Market Street 3.3
3.3.1 Phase A of the development of 5-7 Market Street will consist of works to the
basement, ground and first floors in order to upgrade stage and technical
facilities, relocate the theatre’s Booking Office and expand the catering and
education facilities.
3.3.2 Total project costs are budgeted at ?4.2m. The scheme will be funded
through a portfolio of public funds, donated funds, Theatre Royal funds,
Newcastle City Council and borrowed funds.
3.3.3 In March 2005 Executive agreed a grant of ?250,000 from the Corporate
Resource Pool towards the scheme. Executive is now requested to agree to
a loan of ?870,000 for a period of up to 25 years. 3.3.4 The loan would be financed through Prudential Borrowing. Interest is to be
charged at 4.6%.
3.3.5 The loan repayments will be the first call on the annual revenue grant
provided by the City Council to the Theatre. However, there could be
flexibility to allow earlier repayment should the Theatre wish to do so.
Area Committee Budgets 2005-06 3.4
?
35,594 Gosforth/North Newcastle
36,192 Inner East
61,780 Inner West
35,184 North Central
58,900 Outer East
53,920 Outer West
Total 281,570
3.4.1 Executive is requested to note this item for information only. Further details
of balances brought forward from 2004-05 will be reported to individual Area
Committees
Corporate Implications 4.
Financial 4.1
4.1.1 The City Treasurer has been consulted and he is satisfied that all financial
implications as set out in this report have been considered.
Environmental and Sustainability 4.2
4.2.1 In designing and implementing capital schemes, individual directorates will
ensure that they are in line with the Council’s strategic objectives on the
environment and sustainability.
Risk Implications 4.3
4.3.1 Risks for individual capital projects will by managed by the responsible
Departments.
What Happens Next 5.
5.1 The capital projects outlined in the report will be implemented though normal
procurement arrangements. Spending will be reflected in future capital
programme monitoring reports.
Further Information 6.
6.1 Background Papers held by Capital and Investment Team in room 151.
Contact Officer:- Dawn Higham, Senior Accountant, extension 26676.
The appropriate Scrutiny Panel is: Scrutiny Management Committee.
APPENDIX A
Details of changes to the Capital Programme 2005/06 Future
Years
?000’s ?000’s
EDUCATION & LIBRARIES
Galafields, Newbiggin Hall, funded by Surestart 1,159 Millers Dene Family Centre, nursery extension – funded from Devolved 85 Capital. The enlarged facility will further enhance the service provision
to local parents.
CITY SERVICE
The following schemes have slipped from 2004-05: DMS Revenues and Benefits 31 Health and Safety Outer West CSC (Drum) 180 Transformation Financial Reserve 189 Generic Change Management 603 LIFT 26 Mainframe Migration Exchequer 210 Mainframe Migration Housing 186 Mainframe Migration Others 154 Mainframe Migration Revenues & Benefits 275 HR Payroll Project (Midland – old) 217 HR Payroll Project 373 IEG Websphere 75 Contact Centre 104 CRM Phase 4 51 Technical Refresh 13 West Denton CSC 9
SOCIAL SERVICES
62 Clayton Rd adaptations – re-phased to 2004-05 -7 The following schemes have all slipped from 2004-05: Childrens Services Grant 58 Clayton Rd emergency lights 1 Cowgate Area residential/intermediate care facility 125 Hartburn Walk replacement 84 Improving Information Management 332 IT Software 311 Mental Health Supported Capital Expenditure 142 Newbiggin Hall Community Development Project 56 Newcastle Carers changing facilities in Eldon Square 25 Refurbishment of shop at Byker Sands to provide day care 46 Relocation of Transport Section 26 Various asbestos bids from Good Stewardship Fund 10 Various lighting improvement bids from Good Stewardship Fund 4
YOUR HOMES NEWCASTLE
The following schemes have all slipped from 2004-05: 12 Earsdon Close, West Denton 3 Asbestos Programme 19 Asbestos Survey Communal Areas 18 Asthma Intervention Programme 18 BDH Secondary Mains Replacement 45
Belvedere House Communal Bathroom 3 Bentinck Estate Doors & Windows Ph 1 167 Bentinck Estate Doors & Windows Ph 2 1 BKW: Rye Hill West Door & Window Replacement Ph.1 of 2 24 BKW: Rye Hill West Door & Window Replacement Ph.2 of 2 22 Blakelaw 165 – Rewires 79 Byker DH Water Softening 44 Byker Estate Improved Street Signage 24 Byker Windows/Roofs Ph 1 38 Central Blakelaw Regeneration Ph 2 1 Communal Aerial Systems 25 Communal Boiler Renewal 50 Concierge/CCTV Renewal Continuing Programme 48 Cruddas Park House Valves 3 Cruddas Park Multi Storey 5 Delcam 5 Demo: 1-23b, 25-47b Apsley Crescent 32 Demo: 2-24 Lowgate, Throckley 5 Demo: 43-105 Coach Rd, 26-36 Holeyn Rd 166 Demo: Balmain Rd Garages 1 Demo: Birchvale Phase 1 64 Demo: Birchvale Phase 2 4 Demo: Cambrian Estate HMR Pathfinder 312 Demo: Coupland House/Denmark St 5 Demo: Cowgate Estate Phase 1 15 Demo: Cowgate Estate Phase 2 119 Demo: Lower Scotswood Area 4(NRF) 176 Demo: Newbiggin Hall Siporex Bungalows Replacement 24 Demo: West Denton 3st Flats, Dunblane Crescent 84 Demo: West Court 20 District & Group Heating BMS 26 Dunn Tce Feasibility Study 1 Eastbourne Court Lighting Feasibility Study 3 Energy Conservation Programme 32 Environmental: Walls/Footpaths/Roads 25 Fergusons Lane / Whickham View Programme (NRF) 24 Fire Prevention Continuing Programme 76 Firestopping 3 Storey Flats ph4 20 Focused Estate remodelling 115 Footpath Closure Spenfield Rd & Scafell Drive 1 Gill St strategy 10 Health & safety – lifts 31 Heating by-passes programme 24 HLD: 1-23b, 25-47b Apsley Crescent 1 HLD: 25-47 Hotchpudding Place 12 HLD: Birchvale ph1 20 HLD: Birchvale ph2 3 HLD: Cambrian Estate HMR Pathfinder 131 HLD: Cowgate Estate ph2 5 HLD: Lower Scotswood Area 4 (NRF) 40 HLD: Newbiggin Hall Siporex Bungalows Replacement Strategy 11 HLD: Scotswood Area 8 NRF 42
HLD: Walker Central 8 HLD: West Benwell 4 HLD: West Court 37 HLD: West Dunblane 3st flats Dunblane Crescent 40 ICLS: 43-56 Hareside Court 10 ICLS: 43-53 Tarset Place 10 ICLS Keebledale House 4 ICLS Renewal 15-28 Hareside Court 1 ICLS Security Measures Programme 3 ICLS Replacement Throckley Leazes 11 Keebledale & Allendale Security 25 Kenton Bar 1961 Act ph2 of 2 – rewires 197 Kenton Rd 2 storey flats fire prevention 4 Kings Meadows lift improvements 131 Leazes Court door & window replacement 43 Lower Scotswood demolition Area 7 141 M/S flats water heaters ph2 of 2 3 Mill House front entrance door 5 Mill House security fencing 8 Newcastle Warm Zone – Public Sector 736 Nort Kenton/Fawdon ph2 58 Office Accommodation Continuing Programme 66 Office Furniture NHO ph2 2 Office Furniture NHO ph3 36 Office Furniture - Sage 25 One off boiler replacement continuing programme 10 One-offs rewires 10 PIMSS Software Package 12 Pendower Est ph2 of 3 40 Pendower Est ph3 of 3 34 Planned boiler replacement – Elswick & Cruddas Park 36 Planned boiler replacement – Gill St Estate 36 Planned boiler replacement – Heaton/Shieldfield 37 Planned boiler replacement – NBH 57 Planned boiler replacement – Throckley Northside 20 Planned Environmental Improvements 127 Pre 1919 2003/04 re-roofing programme 56 Pre 1919 walker Heaton roofs ph3 75 Queens Court water penetration feasibility 5 Rachel Maughan feasibility study 2 Reestones Place bricking up understilts 8 Scotswood Area 8 demo 119 Scotswood ph7 of 7 – bungalow conversion 41 Security: Communal Lighting 18 Security Review Programme 100 Selby Court Lift Improvements 17 Shipley St Boilerhouse Burner Renewal 26 Smoke Detection Drive – OAP Bungalows 107 Smoke Detection Initiative – fire prevention 64 SRB: St Anthonys 1924 Est ph7 50 SRB: St Anthonys 1924 Act Est ph6B and 5C 82 St Anthonys 1924 Estate ph7 of 7 63
St Anthonys 5c East 25 St Anthonys ph 7 Sandy Crescent Imps 25 Steel Windows West Denton 2 storey flats ph2 4 Telecommunication Monitoring 4 The Sycamores Lift Improvements 118 Throckley Leazes demolition 53 Throckley Leazes Estate garages demolition 4 Void re-instatement ph1 297 Walls West Denton ph2 of 5 25 Waverley Mather Security Improvements 21 Works at Dilly Lane – communal landscaped areas 38 YHN Programme Development 91 YHN Programme Development – Legal Services 39 YHN Set Up Costs 25 Your Choice homes DDA 3 Your Choice Property Shop 20
The following schemes were re-phased into 2004-05: Blakelaw 165 – windows -310 Blakelaw deck access flats -1 Daisy Hill Improvement Programme -3 Demo: 25-47 Hotchpudding Place -2 Domestic Photovoltaic Systems Field Trial -31 Health Through Warmth Programme -1 New Mills Estate redevelopment -4 Newcastle Furniture Service - purchases -32 Office Accommodation ph3 – Heaton, Byker, Benwell, Gosforth -26 Redevelopment: Lowere Delaval Demo -2 St Anthonys 1924 Act Estate ph6C and 5A -266
The following schemes have been slipped into 2006-07: Demo: Cambrian Estate HMR Pathfinder -178 178 Demo:Newbiggin Hall Siporex Bungalows ph2 -8 8 Demo:Walker Central -16 16 Demo:West Benwell -30 30 City Build – traditional external -1,300 1,300 Planned boiler replacement – Blakelaw/Regent Farm -4 4 Scotswood Area 8 demo -93 93
Allocation of DHS – Multi Storey Flats External Package -1,000 Cruddas Park Multi Storey 106 Cruddas Park – appointment of specialist consultants 52 Wates – multi storey flats external 842
Allocation of Planned Environmental Improvements: -47 Jane Terrace Environmental & Security 10 Coppice Way Environmental Improvements 25 Byker Plans 2 The Greens Environmental Improvements 10
The following new schemes will be financed from borrowing: Cruddas Park appointment of specialists 52
Demo:Newbiggin Hall Siporex Bungalows ph3 25 Demo:Newbiggin Hall Siporex Bungalows ph4 15 Demo:Newbiggin Hall Siporex Bungalows ph5 71 City Build – acquired/one off external 1,033
The following budgets have been reduced in line with anticipated final costs:
Byker Estate Security Initiative -30 Demo: Lower Scotswood Area4 (NRF) -154 Demo: Lower Scotswood Area7 (NRF) -131 Mobile Consultation Unit -28 Tenants Services Citywide -5
NEIGHBOURHOOD SERVICES
City Hall ph1 – budget increased to reflect tender 46