Executive	15 June 2022
Report of the Chief Finance Officer

Capital Programme Outturn 2022/23 and Revisions to the 2023/24-2027/28 Programme

        Report Summary

1. The purpose of this report is to set out the capital programme outturn position including any under or over spends, overall funding of the programme and an update as to the impact on future years of the programme.

2. The report contains details of the capital investment made during 2022/23 and how this has supported delivery of the Council Plan.  Key areas of investment are listed below with further details contained in the body of the report.

· £10.3m on the expansion and improvement of school facilities across the city

· £14.7m on construction of new council housing

· £12.4m on the modernisation of and ongoing repairs to council homes

· £7.5m on highways

· £2.6m on the purchase of new waste vehicles

· £2m York Outer Ring Road dualling

3. Some of the direct outcomes from this investment include:

· Additional teaching space and extension of dining room use at Manor & Millthorpe School

· New block at Fulford school

· The Lowfield scheme is nearing completion with 117/140 of the properties now occupied.

· Contracts entered and construction commenced to provide Passivhaus properties at Burnholme and Duncombe Barracks

· 8 second hand properties purchased to provide shared ownership properties part funded from DLUHC grant as part of devolution deal

· 744 households benefited from tenants choice, the standing water, heating and voids programme

· 327 Concrete Street lighting columns replaced

· Bus stop and shelter improvements across the city, and improvements to Park & Ride sites.

· Upgrades to traffic signals at four locations across the city, including localised resurfacing where required.

· Completion of The Groves Low Traffic Neighbourhood scheme with the installation of permanent measures, following a trial scheme in previous years.

· Installation of dropped kerbs across the city and in the city centre, and installation of a new crossing point in Copmanthorpe.

· Measures to improve safety across the city, including improvements at Green Lane Clifton, and upgrades to Vehicle Activated Signs as required.

· Completion of the Hyper Hubs at Monks Cross and Poppleton Bar, which are now both open to the public

4. The report shows an outturn of £79.321m compared to an approved budget of £127.393m, an overall reduction of £48.072m.

5. The net variation of -£48.072m is made up as follows:

· Requests to re-profile budgets of a net -£49.179m of schemes from 2021/22 to future years (currently approved budgets in the capital programme but requires moving to or from future years in line with a changing timetable of delivery for individual schemes)

· Adjustments to schemes increasing expenditure by a net £1.107m, mainly due to additional grant funding being received.

6. The level of re profiling reflects the scale of the capital programme, and in particular that it contains a number of major and complex projects. The overall capital programme continues to operate within budget, due to careful management of expenditure against the budget.

7. The main areas of re-profiling included within the £49.179m include:

· £4.434m – Home Upgrade Grant

· £4.385m – Duncombe Barracks

· £3.748m – WYTF Station Frontage

· £3.401m - Zebra

· £3.134m – Shared Ownership Scheme

· £2.504m – LA Homes – Hospital Fields/ Ordnance Lane

· £2.249m – York Outer Ring Road dualling

· £1.819m – LA Homes – Burnholme

· £1.326m – Highways – Ward Committees

· £1.169m – York Central Infrastructure

· £1.087m – Local Transport Plan

Recommendations

8. The Executive is requested to

· Note the 2022/23 capital outturn position of £79.321m and approve the requests for re-profiling totalling £49.179m from the 202/23 programme to future years.

· Note the adjustments to schemes increasing expenditure in 2022/23 by a net £1.107m

· Recommend to Full Council the restated 2023/24 to 2027/28 programme of £533.321m as summarised in Table 3 and detailed in Annex A

9. Reason: to enable the effective management and monitoring of the Council’s capital programme

Summary of Key Issues

10. Table 1 outlines the variances reported against each portfolio area.

Department	Current Approved Budget £m	Outturn £m	Increase/ decrease £m	Reprofile £m	Total Variance £m	Paragraph Ref
Children’s services	14.956	13.762	0.036	(1.230)	(1.194)	11 – 28
Adult Social Care	1.166	0.886	0.069	(0.349)	(0.280)	29 – 30
Housing & Community Safety	49.064	31.387	0.504	(18.181)	(17.677)	31 - 59
Transport, Highways & Environment	49.620	25.261	0.174	(24.533)	(24.359)	60 – 73
Regen, Economy & Property Services	6.185	3.877	0.400	(2.708)	(2.308)	74 – 78
Community Stadium & Other Major Projects	0.777	0.506	-	(0.271)	(0.271)	79
ICT	2.985	1.820	-	(1.165)	(1.165)	88 - 92
Customer & Corporate Services	1.489	0.050	(0.076)	(1.363)	(1.439)	87
Communities, Culture & Public Realm	1.101	1.699	-	(0.598)	(0.598)	80 - 86
Climate Change	0.050	0.073	-	(0.023)	(0.023)
Total	127.393	79.321	1.107	(49.179)	(48.072)

Table 1 – Summary of capital outturn by department

Children’s services

11. Total expenditure within the Children’s Services and Education Capital Programme for 2022/23 was £14,312k against a latest approved budget of £14,956k. The majority of this expenditure was incurred under five major scheme headings where there was significant work and progress in 2022/23.  These schemes were:  the expansion of Fulford School (£4,793k); Schools Condition and Maintenance Works (£2,435k); expansion schemes at Manor (£1,023k) and Millthorpe (£1,768k) schools, and significant remodelling work at Danesgate (£1,916k).

12. The major expansion at Fulford School is being funded by the local authority to deal with secondary place pressures.  The scheme has been organised by South York Academy Trust at their school.  The overall project is nearing completion, with the new block handed over to the school by the contractor at the end of April, and now occupied and in use.  Final project works are ongoing but are expected to be complete in early summer.

13. Financially, the scheme is ahead of the currently assumed profile in the programme, therefore an amount of £1,359k of the 2023/24 budget requires bringing forward to 2022/23 to fund expenditure incurred.

14. The scheme at Manor School for the provision of additional teaching accommodation and additional circulation and dining space was successfully completed during 2022/23.  The scheme has delivered the main objectives set out in the original report, including the creation of an additional classroom, the roofing of the rotunda to enable this to be opened up to alleviate the dining and circulation pressures being experienced, and allowing the space to also be used for other activities.  An additional staircase has been created to meet Health and Safety and fire safety issues.  An amount of £27k requires reprofiling into 2023/24.        

15. The scheme at Millthorpe School was also successfully completed in the financial year. Again, all the main objectives of the scheme have been achieved.  Two new classrooms have been created out of an ICT suite and a toilet block.  Dining space has been expanded and this can also be used for intervention and other activities outside of dining times.  Toilets have also been upgraded.  An amount of £82k requires reprofiling into 2023/24.

16. The scheme at Danesgate to make significant adaptations and re-modelling to improve the layout of the buildings for young people with Social, Emotional and Mental Health (SEMH) needs was completed over the summer of 2022. An amount of £79k requires reprofiling into 2023/24.

17. No further expenditure was incurred within the remaining unallocated Basic Need budget so the budget of £220k requires reprofiling into 2023/24.

18. Phase 2 of the Applefields School expansion was carried out over the summer and completed in September 2022.  A small amount of reprofiling is required to 2023/24 (£37k).

19. A significant amount of work has been carried out to the maintained school estate under the various School Condition and Maintenance headings in the programme in 2022/23.

20. One of the larger schemes completed during 2022/23 was the significant programme of work at Clifton Green Primary, including a third phase of roofing replacement and pipework.  This work was completed in time for the start of the new academic year beginning September 2022.

21. Other major schemes which were carried out during the financial year include:  a major programme of roof work and boiler and flue replacement at Yearsley Grove Primary School; roof work and kitchen refurbishment at Elvington Primary School; roof works at Copmanthorpe and Wigginton Primary Schools and toilet and roof works at Huntington School.  Smaller schemes were carried out at Dringhouses Primary (door and window renovations) Headlands Primary (second phase of roofing works) and Stockton on the Forest Primary (boundary fencing improvements).

22. Expenditure in 2022//23 totalled £2,435k, resulting in net reprofiling of £1,461k into 2023/24.  This will fund outstanding payments and retentions with any remainder available to fund further works in 2023/24 and future years.

23. The project to provide a second site for the Enhanced Resource Provision (ERP) based at Haxby Road Primary on the site of Lakeside School is well advanced.  Two new classrooms have been created with a new build onto the side of the existing building, together with break out rooms, a sensory room, toilets and a kitchenette.  The project is currently at the internal fit out stage.  As the scheme is spending ahead of the original profile, an amount of £159k of the 2023/24 budget requires bringing forward into 2022/23 to fund expenditure incurred in the financial year. 

24. Under the general SEND investment scheme, expenditure of £101k was incurred in 2022/23, mainly on contributions to external providers for building adaptations to enable enhanced support for young people with SEND.  The remaining £42k requires slipping into 2023/24 and will be used to contribute to capital works in schools to support the aims of the Safety Valve agreement.

25. Further accessibility improvement work was carried out at All Saints School, the school which had the most critical issues in the city related to accessibility, at a cost of £172k.  The remaining £52k requires reprofiling into 2023/24 and added to the available budget for allocation.

26. The Centre of Excellence project is fully complete with final payments made in 2022/23.

27. The Children in Care Residential Commissioning scheme budget for 2022/23 was used to fund adaptations at Wenlock Terrace at a cost of £373k.  In addition, a virement of £49k is requested to fund additional work in the Adaptations to Foster Carers Homes scheme. The remaining £30k requires reprofiling into 2023/24.

28. Works totalling £99k were approved from the Adaptations to Foster Carers Homes scheme in 2022/23, with the additional cost to be funded by a virement from the Residential Commissioning scheme

Adult Social Care

29. The Ashfield site is now in use, the pavilion and pitches have been completed and the contracts signed off this year.  There is still work to be done to upgrade the access road to the site to bring it up to standard to be adopted by Highways.  This work is expected to start early in 2023/24.

30. The disability equipment budget has been used to purchase items such as ceiling track hoists, stair climbers, ramps and specialist seating to help customers remain in their homes.  In total 76 customers (including 12 children) have been provided with equipment in 2022/23

Housing & Community Safety

31. The major repairs & modernisation of local authority homes programme has total capital expenditure of £9.658m in 2022/23 against a budget of £9.190m. This was an overspend of £468k. This included expenditure of £275k on preconstruction design on significant major repair schemes at Bell Farm and Glen Lodge the scope of which has been approved by Executive in July 2022. There remains a revised overspend of £193k funded from the Major Repairs Allowance.

32. There are four major programme streams within this budget which accounts for c75% of the overall spend area detailed below

	Budget £’000	Actual £’000	Variance £’000	Property No
Standing Water (Damp)	1,810	1,869	+59	32
Voids	1,336	1,861	+525	64
Heating Systems	1,003	1,132	+129	476
Tenants Choice	2,805	2,427	-378	172

33. The table above shows that approximately 744 have seen significant repairs and modernisation through the above programmes.

34. There have been significant inflationary increases across building service works particularly in relation to materials and sub-contractor costs and the budgets going forward have increased to reflect these pressures.

35. The Housing Delivery Programme continues at pace with the majority of the scheme at Lowfield completed by 31^st March 2023. There remains a final phase for release which is expected

36. There are four major programme streams within this budget which accounts for c75% of the overall spend area detailed below

	Budget £’000	Actual £’000	Variance £’000	Property No
Standing Water (Damp)	1,810	1,869	+59	32
Voids	1,336	1,861	+525	64
Heating Systems	1,003	1,132	+129	476
Tenants Choice	2,805	2,427	-378	172

37. The table above shows that approximately 744 have seen significant repairs and modernisation through the above programmes.

38. Expenditure totalling £135k was incurred at Glen Lodge as part of the major repairs scheme. Extensive fabric and M&E condition surveys were commissioned with a view to minimising unforeseen risk to CYC.  M&E consultants have been engaged to produce designs for RIBA Stages 1-3.  The remaining seven residents who lived in the original building were relocated to flats in the new wing. Work to procure a construction partner is underway.

39. At Bell Farm expenditure totalling £140k has been incurred as part of the modernisation and removal of asbestos pods at the properties. The scheme is progressing well with the architect team now working on final designs towards a RIBA stage 3 tender design report mid-June.  Tender for a construction partner is underway.  The design work sees removal of poor quality pods to the rear of the buildings removed and rebuilt with high quality sustainable extensions as well as works to retrofit the homes to add additional insulation and renewables, lowing energy bills for future residents. The project was successful in obtaining over £600k of Social Housing Decarbonisation Funding to part fund these enhancements.

40. The two schemes above are subject to full budget approval from Executive later in the year. In 2023/24 the costs were funded from Housing capital receipts.

41. There have been significant inflationary increases across building service works particularly in relation to materials and sub-contractor costs and the budgets going forward have increased to reflect these pressures.

42. Lowfield Green is due to complete in late June 2023. To date 117 of 140 new homes have been completed and occupied. The site boasts over an acre of public space in the heart of the development which is well used by both the new and existing communities. The pocket park area is due to complete in June 2023 adding additional recreational space on the site. The 6 self-build plots are largely finished and the sale of the Yorspace site has completed. Feedback from residents through post-occupancy surveys has been overwhelmingly positive. 

43. Construction at Duncombe Barracks is now in full swing, with all three blocks of homes under construction. April saw the start of the timberframe structure being built with the crane in operation lifting timber panels into place. Caddick have hosted a number of visits from York College students giving them the opportunity to learn about Passivhaus. Caddick have a T-level placement student and construction management trainee both based on the project. CYC have developed an excellent relationship with St Luke’s Church who are adjacent to the site.

44. Construction at Burnholme started on site in November 2022 to deliver 83 new Passivhaus homes. The work on site is going well with substructure works progressing ahead of programme. The workmanship on site is very high, providing an exemplar in sustainable construction.

45. The Ordnance Lane / Hospital Fields Road site gained full planning permission in Summer 2022 for 85 homes and 8 commercial spaces. Following an Executive decision in February 2023 the Housing Delivery Team are currently tendering for an enabling contractor in order to utilise £2.4m grant funding from the OPE to remove abnormals from the site and prepare it for development.

46. The Housing Delivery Team are currently undertaking a procurement exercise for a multidisciplinary team to carry out design works on the Willow House site incorporating opportunities for wider area regeneration along with new build on the previous care home site.

47. The Second Hand Shared Ownership Programme has seen continued demand throughout the year. The Homes England funded programme has seen 3 legal completions this year and the innovative Shared Ownership with retrofit programme is processing the legal completion of 14 homes.

48. The council were also in receipt of £1.998m funding as part of the devolution deal. During the year 8 properties at a cost of £2.08m were purchased using the grant and HRA resources. A similar number are due to be purchased in 2023/24.

49. The former Tang Hall library building has now been demolished following a delay to safely remove the discovered asbestos. The site has been hoarded off and an official offer has been made by CosyHome, the community group buying the site, which is currently going through the conveyancing procedure. It is expected that the group will exchange and complete on the land by November 2023. The costs incurred of £55k have been funded by Brownfield Land Release Fund.

50. At Chaloners Road The 15 garages have now been demolished and the site has been hoarded off to make it safe. Design work will start immanently with the aim to submit the outline planning application by the end of July 2023. The costs incurred if £33k have been funded by Brownfield Land Release Fund.

51. During the past year the adaptations teams within the Healthy and Sustainable Homes team have carried out around 1,800 adaptations to properties in York, in both Council housing via the Assistance to Older and Disabled People budget and Private Sector housing via the Disabled Facility Grant, to help people to continue to live independently in their homes.

52. This includes carrying out around 1,350 minor adaptations such as the installation of grab rails, banisters, and 450 major adaptations such as level access showers, wet rooms, and the installation of stairlifts, through floor lifts etc.

53. In one of our cases involving a young man displaying some incredibly complex behaviours we were able to make adaptations to a bedroom in the property to create a separate bathroom for the young man’s own use. The changes that his mum reported in her son’s and the family’s life were just amazing.

54. Spending on Disabled Facilities Grants totalled £1,960k funded from Government Grant and Council Prudential Borrowing and was in line with budget.

55. Spending on Council Housing adaptations was £796k compared to the budget of £600k in the last financial year as a result of increases in costs, partly arising from inflation and also due to issues finding suitable companies to deliver the service, and also as a result of an increasing demand for the service. The additional cost of £196k has been funded from an additional revenue contribution from the HRA.

56. Overall demand for adaptation works to properties to help people stay independent remains strong, with increasing demand for service and budget arising from an increasing elderly population and increasing costs for works associated with adaptations due to inflation.

57. Delivery of the Home Upgrade Grant is being undertaken by the Healthy and Sustainable Homes Team and our delivery partner EON, and incorporates a number of different energy efficiency improvement schemes including Local authority Delivery phase 1B (LAD1B), Local authority Delivery phase 2 (LAD2), Local authority Delivery phase 3 (LAD3), and the Home Upgrade Grant phase 1 (HUG1). These schemes involve a number of other partners, varying by scheme, including Craven DC, Harrogate BC, Selby DC and some housing associations.

58. During the past year the LAD1B and LAD2 schemes were completed and signed off in September, carrying out works to 167 properties including a range of measures such as 80 loft insulations, 38 cavity wall insulations, 21 room in roof insulations, 34 solar photovoltaic installations, and 7 air source heat pumps.

59. Works on the LAD3 and HUG1 schemes are underway, with 107 measures completed to date including solar photovoltaic installations, loft insulations, air source heat pumps, hybrid air source heat pumps, underfloor insulation, and smart heating controls. Due to the delays in appointing a delivery partner, and issues identifying suitable measures to be carried out to properties, an extension to the schemes to the end of September 2023 was granted by Department for Energy Security and of Net Zero in March/April 2023. This will enable the remaining approved 228 measures for the schemes to be delivered to improve the energy efficiency of many homes in York.

Transport, Highways & Environment

60. Capital expenditure on various schemes within Transport, Highways & Environment totalled £xm in 2022/23.

Transport

61. A number of transport schemes have been completed in 2022/23, and feasibility and design work has been carried out to develop schemes for implementation in 2023/24. Completed schemes include:

· Bus stop and shelter improvements across the city, and improvements to Park & Ride sites.

· Funding provided for the purchase and installation of ‘Tap on’ readers on the First York bus fleet.

· Purchase of two new minibuses for the Dial & Ride bus service.

· Upgrades to traffic signals at four locations across the city, including localised resurfacing where required.

· Completion of The Groves Low Traffic Neighbourhood scheme with the installation of permanent measures, following a trial scheme in previous years.

· Improvements to signage for the Community Stadium on the outer ring road.

· Completion of the Coppergate One-Way scheme, following approval to make the trial one-way closure permanent.

· Improvements to Coppergate Car Park including CCTV and exit barrier upgrades.

· Amendments to the cycle barriers on Hob Moor to improve accessibility. 

· Installation of dropped kerbs across the city and in the city centre, and installation of a new crossing point in Copmanthorpe.

· Measures to improve safety across the city, including improvements at Green Lane Clifton, and upgrades to Vehicle Activated Signs as required.

· Footway improvements at Heslington Hall to replace a narrow section of footway.

62. A revised Active Travel Programme has been developed following initial feasibility work on the proposed schemes, and feasibility and design work is being progressed to prepare schemes for implementation, with the Skeldergate and St George’s Field Crossing schemes approved for delivery in 2023/24. Feasibility and design work has also been carried out on other schemes in the programme to develop schemes for implementation in 2023/24.

63. The council made a successful bid to the government for funding for York's Bus Service Improvement Plan (BSIP), and has been awarded funding for a programme of improvements to bus services and bus infrastructure, which will be progressed in 2023/24.

64. Progress has also been made on a number of Major Schemes throughout the year, with the completion of the Hyper Hubs at Monks Cross and Poppleton Bar, which are now both open to the public, the start of works on site for the Tadcaster Road Transport Improvements scheme, installation of electric vehicle charging equipment at the council’s Hazel Court site in preparation for the increasing fleet of electric vehicles, the completion of the data platform and real-time model for the STEP project, and the final grant payments to bus companies for work to improve emissions from bus fleets for the city centre Clean Air Zone.

65. The planning application for dualling the York Outer Ring Road (A1237) was submitted in 2022/23 and is proceeding through the determination period, and the project team are working on other elements of the scheme including developing the business case and completing the detailed design for the scheme.

66. Work on the York Station Gateway scheme continued through 2022/23 with the utility diversion works being carried out, and the main highway works are expected to start on site in late summer 2023.

67. Following the completion of the design for the City Centre Access & Security scheme and the completion of required utility diversions, work to install the permanent Hostile Vehicle Mitigation measures started in April 2023.

68. Work is continuing to progress the design work and develop a revised business case for the new rail station at Haxby following the approval of a preferred site for the station, and feasibility work has continued to consider potential transport measures for the Castle Gateway area linked to the wider development proposals for the area.

69. Following the completion of the Bootham Crossing scheme in early 2022/23, work has continued to develop the next phase of the scheme (new cycle ramp at St Mary’s) for implementation in 2023/24.

70. The council was awarded grant funding from the government’s Zero Emission Bus Regional Area (ZEBRA) fund to support the purchase of 44 fully electric buses, and has been working with bus operators to progress this scheme. It was expected that the grant funding would be allocated in 2022/23 for the purchase of buses and charging infrastructure upgrades at the First York depot, but due to delays, this will now be progressed in 2023/24

Highways

71. In 2022/23 a  total 327  Concrete Street lighting columns were replaced in Acomb/Holgate/Micklegate and Rural west wards as part of the capital concrete column replacement program. As part of this program we have also continued to swap old lantern technologies , approximately 125 on this program in total (not previously changed), which have a high energy cost as opposed to LED. Usually conversion to LED is approximately a 60% energy saving on each asset per year.

72. An additional replacement program of 66 Steel columns (in difficult locations)was also undertaken, this due to structural testing failures on Steel Columns from annual cyclical testing, and  as part of the structural testing maintenance regime. These new columns will also have been converted to LED if not previously changed.

73. The bar walls works programme for 2022/23 saw both the Anglian Tower and Tower 2 projects completed. Final works at Anglian Tower included the fabrication and installation of metal gates and grills and the completion of an archaeological report detailing the findings of the adjacent stone step renewal. Final works at Tower 2 involved agreeing the design and installation of interpretation boards. Also completed in 22/23 were Tower 35 restoration and investigations, structural repairs to the wall immediately north of Micklegate Bar and the commencement of reroofing works at the Red Tower

Regeneration, Economy & Property services

74. The Guildhall project completed in April 2022 and the University /York Science Park Ltd have now been operating the serviced office and business club / events venue, for 12 months. The offices suites are fully let with businesses already extending their tenancies.  The quality of the completed project has been demonstrated by the relatively few snags and defects, which have been rectified promptly by the works contractor Vinci.  As a result the first tranche of retention was released in November with the final elements due in May 2023.  The project remains on track to deliver the £500k out-turn saving reported in the February budget.

75. The Guildhall hosted over 30 events in the period 1 Jan to 31 Mar including: Residents Weekend and the Viking Festival – with over 3,000 visitors to these events in total.  More recently Fashion Week has showcased the venue’s iconic main hall and overall flexibility.  Feedback from the University, business tenants and visitors is very positive.  The project has also demonstrated that historic buildings can be sustainable; the river source heat pump powered heating system is achieving carbon savings of around 4 tonnes per year when compared with equivalent gas usage, thanks to the council’s investment in this green energy source as part of the project

76. Delivery of the Castle Gateway project continues to be impacted by a number of factors: construction cost inflation; higher interest rates ; economic uncertainty and unsuccessful Levelling up Funding bids. Wates were appointed as the contractor for Castle Mills to undertake the detailed design of the new apartments, bridge and riverside park, and to provide a fixed price for the construction phase in the summer of 2021. Unfortunately it was necessary to terminate this contract in June 2022 when a construction cost had not been provided because of design issues causing delays, which impacted pricing.  Following the contract termination Wates have been paid for work completed and the design outcomes are being reviewed.

77. The design for new public realm and events space at Castle and Eye of York was submitted for planning in 2022 following extensive public and stakeholder engagement.  The determination of the application is still pending where some amendments will be needed to address consultation comments.  The intention is to have a delivery ready project to transform this area of the City as funding becomes available.

78. The importance of St George’s Field as a parking location has been confirmed by a review of council car parking.  Proposals for improving parking provision here and as replacement car parking for the Castle and Eye of York are undergoing further review.

Community Stadium & other projects

79. The final retention payments have now been made to the contractor for the stadium development. There was a spend of £506k during the year compared to the budget of £777k. There remain some residual works around the Highways in the surrounding environs which the council are responsible for funding and they should be completed in 2023/24 within the overall budget. 

Communities and Culture

80. Preliminary investigation works at the York Acorn Sports and Social Club have been undertaken to progress the Westfield MUGA scheme and the necessary additional funds needed are being sought in order to be able to build the multi-use games area.

81. Progress has been made across the various library capital schemes. The self-issue machines have now been purchased and are in use across all the libraries.

82. The new library at Haxby opened on 5 May 2023 and has been very successful.

83. Clifton Library – The plans for the new library at Clifton have been through planning and it is now under construction, with an anticipated opening by Autumn 2024

84. Consultation is currently ongoing with residents regarding the Acomb library which will feed into how the library will be expanded to meet customer demand.

85. The three library projects are all combined now and reported under a single FLIP (Future Libraries Investment Programme) under the corporate project management structure.

86. Phase 1 of the works under Energise roof are complete which has eliminated 90% of the problems.  Ongoing investigations are taking place to locate the final leaks.

Customer and Corporate Services

87. Phase 2 of the registry office works encountered a long delay in getting permission to reinforce the floor at Bootham. Approval was given and the work undertaken during March 23.  The Registry Office now has a new repository with modern racking for registers.  The balance of the budget will be used during 2023 to improve the toilet facilities.

Customer and Corporate Services - IT

88. The ICT development plan has a capital expenditure totalling £1.820m in 2022/23. The work of the ICT service supports and enables the council, partners and also the city on many different levels. Examples this year include:

Digital Council

89. Whilst impacted by Industry wide supply chain issues, still the most significant financial investment in year was attributable to the staged roll out of the councils new Voice and Data Managed Services contract. Much has changed since our last contract, including an increase in our dependence on wireless connectivity within our buildings, which has now become an essential part of everyday working life and required a significant uplift in availability, throughput and security. A rolling programme of upgrades has been successfully undertaken through the year as the investment in core underlying network infrastructure is implemented. Ongoing work has also continued to ensure that ICT services remain available, secure and supportable, and this has included but is not restricted to,  investment in our storage, Citrix platforms and ensuring that our operating systems and corporate and directorate systems were updated appropriately and with minimal impact on our customers.

90. The Council continued to invest responsibly and appropriately in cyber security to ensure ICT services responded to the ever changing and complex threat landscape. This included investment in Trend deep security protection which provides advanced server security for our mixed estate of physical, virtual and cloud servers, the replacement of the system that scans attachments that are delivered through email for security issues, the introduction of the automatic implementation of Intrusion Protection (IPS) recommendations and upgrades to the corporate firewalls to ensure they remained up to date and fit for purpose. Microsofts “Always On” secure connection to replace the current secure but aging Direct Access connectivity that customers currently enjoy has been developed and tested against our very complex environment and we plan to begin to roll this out during the late summer and autumn 23.

91. A number of systems have been implemented, replaced, upgraded or continued to be further developed this year, these include :

· The completion of Phase 1 of the CRM

· The further development of the new housing application which replaces a number of legacy systems across Housing and Building services and provides a workflow based single system to manage work.

· Improvements to the Information Asset Register to support the ROPA (Record of Processing Activity) regulation under the direction of our Information Governance team

· Modern.gov system updates

· Replacement of the learning Network

· Active Directory Management automation

· Cloudflare DDoS protection and security filtering service enhancements

· PReSConnect printing was implemented allowing the decommission of the previous aging Gandlake print facility

· SX3 Revs and Bens contract renewal which will include the replacement of Gov Tech with Citizen’s Access

· Provision of a Digital Signature system

· Expanded use of Assistive Technology and robotics to enable our customers to live independently and safely for longer

· Removal of Internet Explorer and replacement with Chrome and/or Microsoft Edge

· Roll out of single sign on to appropriate applications

· Implemented the Opayo gateway (replacement for Mastercard)

· Launch of the Yorkshire and Humber Shared Care Record which provides a wealth of information to Adult Social Care colleagues

· The new Highways system that is scheduled to go live this summer

· York Stadium Fibre connectivity

· Implementation of Inform robotics in the Customer Centre

· Implementation of Delve to replace Intranet Profiles.

· Decommission of Attend Anywhere and launch of MS Bookings

Digital Staff

92. The majority of our work under this theme has been our involvement on the Working as One programme where ICT have provided significant support and resource commitment into the establishment and progression of this fast paced and evolving council priority.  Our involvement has included:

· Ongoing provision and refresh of standardised ICT kit aligned to draft worker styles including the specification, sourcing, configuring, delivery and support of the equipment necessary to allow the delivery of secure hybrid working ensuring staff the right equipment at the right time to meet the demands of their role.

· Engagement in floor plate design and the planning for, sourcing and installation of essential ICT kit to allow for the return to West Office of the reduced CYC staff complement and new partners. This included ensuring that the required levels of secure access and effective working were enabled and maintained for the new and evolving occupancy mix of the building.

· The purchase and implementation of the Matrix Booking system to support the return to the office.

· Our ongoing commitment to the testing and roll out of the M365 applications, in particular this year this included further investment in Teams to incorporate incoming and external telephony services as we work toward the decommissioning of Skype.  

· Identification and deployment of applications previously only available in Citrix over to laptops and desktops.

· Ongoing improvement works relating to ICT service provision for staff at Hazel Court.

.

Digital City

93. Some of the key activities during the year included:

· Continued to work with the Housing Management Team to ensure our new development sites are performing as expected and are future proof in terms of their digital connectivity and IoT/smart city building blocks, and have expanded our Smart Lighting deployment within the City.

· Continuing to work with telecommunication providers to explore the opportunities and action the improvement and expansion of the Cities digital connectivity layers including fibre infill areas and also the completion of the recent £2m+ private sector investment into upgrading existing fibre network within the City as part of the preparation work ahead of the main building programmes restarting that will extend the access to ultra-fast and future proof broadband by another 14,000+ premises within the City.

· 2022/2023 has seen a significant increase in both choice and affordability of internet service providers ( ISP’s) within the City including low cost essential broadband packages.

· We have been working very closely with TalkTalk over the last year while they make major changes to their original UFO (Ultra Fibre Optic) offering. This was an initial joint venture between TalkTalk and Sky offering the first trials of full fibre broadband in the UK back in 2015 and with the equipment becoming obsolete and needing to be upgraded and replaced, TalkTalk and now withdrawing the UFO service by 29th May 2023. This could impact up to 8,000 connections in the city and we have been working hard to ensure the messaging and communication of this is handled carefully and in a manner that ensures the least disruption to their customers broadband services.

· The City Centre digital connectivity expansion programme is now in full swing, partially funded through the Digital Enterprise programme and also commercial investment (through a range of ISP’s) and will have the capability to provide full fibre broadband to approx. 6,000  premises within the next year.

· Working with other partners within the Superfast West Yorkshire & York programme to evaluate the options within the gain-share process from previous phases of the BDUK rural programme with a view to further expand access to improved broadband within our rural areas and communities.

· DCMS funded rural programmes in the villages of Elvington and Wheldrake are now 90% complete, wayleaves challenges are hoped to be overcome to fulfil the remaining 10%. Uptake across both villages has been fantastic and is continually increasing as the community engagement continues and more contracts come to their end allowing more residents and businesses to gain access to the full fibre network

· Stockton on the Forest full fibre broadband programme started in the summer of 2022 and whilst progress slowed due to a network re-design, that ensured the fibre footprint covered as many premises as possible while remaining cost effective, the majority of the civils works is now complete and the build work has commenced. Up to 500 premises will be able to access this new network with installations set to commence mid-May.

· Project Gigabit is the Government’s flagship £5billion programme to enable hard to reach communities to access gigabit capable broadband. This targets homes and businesses not included in commercial plans to deliver fast and reliable broadband that will level-up most rural and remote communities as well as tackling pockets of poor connectivity in urban areas. York are in Lot 8 which is currently in procurement phase for approx. £66million.

Fundingthe 2022/23 Capital Programme

94. The 2022/23 capital programme of £79.321m has been funded from £28.676m external funding and £50.645m of internal funding. The internal funding includes resources such as revenue contributions, Supported Capital Expenditure, capital receipts and reserves.

95. The overall funding position continues to be closely monitored to ensure the overall capital programme remains affordable and is sustainable over the 5 year approved duration.

Update on the 2023/24 – 2027/28 Capital Programme

96. The restated capital programme for 2023/24 to 2027/28 split by portfolio is shown in table 3. The individual scheme level profiles can be seen in Annex 1.

Gross Capital Programme	2023/24 £m	2024/25 £m	2025/26 £m	2026/27 £m	2027/28 £m	Total £m
Children’s services	24.154	2.520	1.900	0.920	-	29.494
Adult Social Care	1.099	0.682	0.705	0.728	0.752	3.966
Housing & Community Safety	72.758	40.576	35.181	27.701	14.638	190.854
Transport, Highways & Environment	125.601	56.257	16.602	16.282	17.698	232.444
Regen, Economy & Property Services	47.909	1.250	0.275	0.275	0.275	49.984
Public Health
Community Stadium	0.271	-	-	-	-	0.271
FM & Buildings	-	-	-	-	-	-
ICT	3.722	2.820	3.170	2.820	2.820	15.352
Customer & Corporate Services	2.290	0.200	0.200	0.200	0.200	3.090
Communities & Culture	5.383	0.726	-	-	-	6.109
Climate Change	1.461	0.250	0.250	-	-	1.961
Revised Programme	284.648	105.281	58.283	48.926	36.383	533.321

Table 3 – Restated Capital Programme 2023/24 to 2027/28

97. Table 4 shows the projected call on Council resources going forward.

	2023/24 £m	2024/25 £m	2025/26 £m	2026/27 £m	2027/28 £m	Total £m
Gross Capital Programme	284.648	105.281	58.283	48.926	36.383	533.321
Funded by:
External Funding	122.984	45.594	13.200	9.612	6.495	197.885
Council  Controlled  Resources	161.664	59.687	45.083	39.314	29.888	335.636
Total  Funding	284.648	105.281	58.283	48.926	36.383	533.321

Table 4 – 2023/24 –2027/28 Capital Programme Financing

98. The Council controlled figure is comprised of a number of resources that the Council has ultimate control over.  These include Right to Buy receipts, revenue contributions, supported (government awarded) borrowing, prudential (Council funded) borrowing, reserves (including Venture Fund) and capital receipts.

99. In financing the overall capital programme the Chief Finance Officer will use the optimum mix of funding sources available to achieve the best financial position for the Council. Therefore an option for any new capital receipts would be to use these to replace assumed borrowing, thereby reducing the Councils’ borrowing levels and associated revenue costs.

Consultation

100. Not applicable

Options

101. Not applicable

Council Plan

102. The information contained in this report demonstrates progress in achieving the priorities set out in the Council Plan.

Implications

103. This report has the following implications:

· Financial -  are contained throughout the main body of the report

· Human Resources (HR) – There are no HR implications as a result of this report

· One Planet Council/ Equalities – The capital programme seeks to address key equalities issues that affect the Council and the public.  Schemes that address equalities include the Disabilities Support Grant, the Schools Access Initiative, the Community Equipment Loans Store (CELS) and the Disabilities Discrimination Act (DDA) Access Improvements. All individual schemes will be subject to Equalities Impact Assessments

· Legal Implications - Whilst this report itself does not have any legal implications, the schemes within the capital programme will themselves will be in receipt of legal advice where necessary

· Crime and Disorder - There are no crime and disorder implications as a result of this report.

·  Information Technology – The information technology implications are contained within the main body of the report,

·  Property - The property implications of this paper are included in the main body of the report which covers the funding of the capital programme from capital receipts.

· Other – There are no other implications

Risk Management

104. There are a number of risks inherent in the delivery of a large scale capital programme. To mitigate against these risks the capital programme is regularly monitored as part of the corporate monitoring process, and the project management framework. This is supplemented by internal and external audit reviews of major projects.

Contact Details

Authors:	Officer Responsible for the report:
Emma Audrain Technical Accountant Corporate Finance emma.audrain@york.gov.uk	Debbie Mitchell Chief Finance Officer
	Report Approved	√	Date	31^st May 2023
Wards Affected:  All
For further information please contact the authors of the report
Specialist Implications:
Legal – Not Applicable
Property – Not Applicable
Information Technology – Not Applicable

Annexes

Annex A – Capital Programme by year 2022/23 – 2027/28