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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 08/01/2008
BUDGET MONITORING - NOVEMBER 2007



Summary & Purpose
This report provides details of the expenditure and income position to the end of November 2007 compared with budget for the General Fund and the Housing Revenue Account. It also gives an update on the Capital Programme for the General Fund and Housing Revenue Account.

APPENDIX C
Waverley Borough Council

EXECUTIVE - 8TH JANUARY 2008

Title:
BUDGET MONITORING - NOVEMBER 2007
[Wards Affected: All]

Summary and purpose:

This report provides details of the expenditure and income position to the end of November 2007 compared with budget for the General Fund and the Housing Revenue Account. It also gives an update on the Capital Programme for the General Fund and Housing Revenue Account.

Environmental implications:

There are no direct environmental implications relating to this report.

Social / community implications:

There are no direct social/community implications relating to this report.

E-Government implications:

There are no direct E-Government implications relating to this report.

Resource and legal implications:

This report shows the budget monitoring position to the end of November 2007 for the General Fund and the Housing Revenue Account. It monitors the progress of revenue expenditure and income and projects the likely year-end position. The position on capital expenditure is also given.

General Fund

1. The position to the end of November forecasts an underspend at the year-end of 542,010. This is an increase from the September monitoring which forecast an underspend of 409,420.

2. The main elements of this underspend are additional interest; additional Land Charges income; other areas of additional income; an underspend on the Grounds Maintenance budget; offset by additional expenditure on Legal and other Planning Fees.

3. The main projected variations from the Budget are shown in the table at Annexe 1.

Inflation Provision

4. The Budget includes an Inflation Provision of 480,000. This covers all of the known major cost increases. To date some 301,000 of the provision has been allocated, this includes the allocation for the year on all the main contracts. This use is in line with the amounts provided for within the Inflation Provision.

Target Reductions

5. The table below shows the target reduction included in the Budget for 2007-08 together with the level of achievement to date.

Target
Status
Staffing savings target - General Fund
300,000
Amount achieved to 30th November is 230,000. It is likely that the target will be fully achieved by the year-end.

Supplementary Estimates

6. The approved Supplementary Estimates are shown below:-
ServiceAmount
Undershaw Hotel
65,000
Executive 9th January 2007
Dunsfold Park legal costs
80,000
Executive 4th September 2007
Website Manager
18,000
Executive 10th July 2007
Charges for Planning services
52,000
Executive 10th July 2007
215,000
Use of Balances

7. The Budget for 2007-08 includes a contribution of 450,000 from the General Fund working balance. 8. The underspend, together with the Supplementary Estimates identified at paragraph 6 and the revenue carry forward from 2006-07 to 2007-08 of 144,210, gives a forecast contribution from balances at the year end of 267,200. 9. The use of the Revenue Reserve Fund is budgeted at 150,000 and this will still be required. 10. Local Authority Business Growth Incentives (LABGI) Grant, in respect of 2006-07, of 913,000 was received in February 2007 and a further 97,000 was announced and received in September 2007. The 97,000 received this year will be transferred to the Revenue Reserve Fund in line with Council policy; the 913,000 having been transferred there during 2006-07. 11. The updated position regarding the level of the General Fund Working Balance including projections in line with the Financial Strategy is shown at Annexe 2. This shows an improvement of 327,000 from the budget as originally set and an improvement of 133,000 from the Forecast in the previous Budget Monitoring report to the 30th September.

Housing Revenue Account

12. The major variations identified are attached at Annexe 3, an overspend of 50,200 has been identified. This is before vacancy savings, which will be in the region of 100,000, resulting in an overall underspend of 49,800.

Use of Balances

13. The Budget for 2007-08 includes a contribution of 80,910 from the Housing Revenue Account working balance. The underspend, together with the revenue carry forward from 2006-07 to 2007-08 of 90,000, gives a forecast contribution from balances at the year end of 121,110 as follows:
Capital Programme

14. The detailed monitoring report for the General Fund Capital Programme is attached at Annexe 4.

15. Expenditure to the end of November is some 1.5million, compared with a total approved Programme of 6.84million. However, as reported to the Executive previously, the monitoring process has identified that some 2.75million of expenditure will now be rescheduled to 2008-2009. In the main, this arises from the Leisure Strategy with the main refurbishment programme rescheduled to follow the new contract commencing July 2008. As the notes to Annexe 4 indicate, a substantial part of the remaining Programme is scheduled to be delivered during the next few months.
Housing Revenue Account

16. The latest position on health and safety and decent homes work currently shows spend of some 4million from a total programme of 7.3million. This results in the potential for an overspend of 250,000. However, in some areas there is still a large volume of work to be completed and this volume can be managed to bring the programme in on budget.

17. The 50,000 budget for refurbishment of homeless hostels will not be spent as no programme of work has been identified.

Revenues Cash Collection

National Non-Domestic Rates

18. The net cash collected in the financial year to 30th November 2007 was 24,736,145. When compared with a net collectable debit at 30th November 2007 of 31,814,838, this represents a collection rate of 77.75%. The comparable collection rate in the previous financial year was 77.17%.

Council Tax

19. The net cash collected in the financial year to 30th November 2007 was 55,364,625. When compared with a net collectable debit at 30th November 2007 of 71,132,656, this represents a collection rate of 77.83%. The comparable collection rate in the previous financial year was 77.81%.

Conclusion

20. Corporate Management Team will continue to monitor the position to the end of the financial year and take action where appropriate to contain expenditure within budgets.

Recommendation

It is recommended that the current monitoring position for the General Fund Revenue Account, Housing Revenue Account and Capital Programme be noted.

Background Papers (DoR)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

CONTACT OFFICER:

Name: Brian Long Telephone: 01483 523253
E-mail: blong@waverley.gov.uk




Comms/exec/2007-08/209