Waverley Borough Council Home Page Waverley Borough Council Home Page


Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 07/12/2004
Budget Monitoring - October 2004



Summary & Purpose
This report provides details of the expenditure and income position to the end of October 2004 compared to budget for the General Fund and the Housing Revenue Account.

Quality of Life Implications
Natural Resource Use
Pollution Prevention and Control
Biodiversity and Nature
Local Environment
Social Inclusion
Safe Communities
Local Economy
Natural
Resource Use
Pollution
Prevention and Control
Biodiversity
and Nature
Local
Environment
Social
Inclusion
Safe, Healthy
and Active
Communities
Local
Economy
N/A
N/A
N/A
N/A
N/A
N/A
N/A


APPENDIX E
WAVERLEY BOROUGH COUNCIL

EXECUTIVE – 7TH DECEMBER 2004

_________________________________________________________________________

Title:
BUDGET MONITORING - OCTOBER 2004

[Wards Affected: All]
_________________________________________________________________________

Summary and purpose:

This report provides details of the expenditure and income position to the end of October 2004 compared to budget for the General Fund and the Housing Revenue Account.

_________________________________________________________________________

Quality of life implications – social, environmental & economic (sustainable development):

E-Government implications:

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

Resource and legal implications:

This report shows the budget monitoring position to the end of October 2004 for the General Fund and the Housing Revenue Account. It monitors the progress of revenue expenditure and income, shows the latest position regarding the target reductions included within the Budget and projects the likely year-end position.

_________________________________________________________________________

General Fund

1. Budget Monitoring for the period 1st April 2004 to 31st October 2004 shows that although there are significant overspends and losses of income in some areas, savings and additional income in other areas has the effect of making the overall position broadly neutral. This is after allowing for the departmental housekeeping targets, which should be achieved by the year-end.

2. The main variations from Budget are:-

Development Control – additional Legal Expenses for Inquiries of 72,000
Homelessness – net saving of 54,000, being a saving in rent payable and on the costs of the Homelessness Bill
Miscellaneous Properties – rental income for Montrose, loss to date 24,500
Car Parks – the forecast shortfall in income of 90,000 is an improved figure from last monitoring and results from the closure of the Health Centre at Dogflud Car Park and fewer season ticket sales
Land Charges – a reduction in the number of searches resulting in a loss in income of 78,000 (net) Interest on Balances – additional interest amounting to 150,000
Development Control – additional income of 50,000 is forecast
Industrial Sites – backdated rent review Sainsburys, Farnham 51,400

Inflation Provision

3. The Budget includes an inflation provision of 640,000 including the January 2004 pay award. This has now been fully allocated.

Supplementary Estimates

4. The approved Supplementary Estimates are shown below:-
Use of Planning Delivery Grant for staffing
21,000
Council 20th July 2004
Planning – enforcement prosecutions (x3)
45,000
Council 20th July 2004
Affordable Housing
18,500
Executive 12th July 2004
Top Management Review - consultancy
21,000
Executive 6th April 2004
Pay Award
70,000
Council 20th April 2004
Total
175,500

Virements

5. In accordance with the Financial Regulations, the following virements require the approval of the Executive.
Target Reductions

6. Included within the Budget are various target reductions, these are likely to be achieved by the year-end. It is anticipated that Officer Manpower will achieve a saving in excess of the 240,000 target included within the Budget.

Use of Balances

7. The use of balances is budgeted at 60,000 from the General Fund Working Balance and 250,000 from the Revenue Reserve Fund. The 2003/04 outturn means that there is no surplus General Fund Balance available for use this year. Therefore to cover the Supplementary Estimates, slippage and the budgeted figure of 60,000, the potential contribution from the Revenue Reserve Fund will need to increase to approximately 500,000.

Housing Revenue Account

8. Budget Monitoring for the period 1st April 2004 to 31st October 2004 has identified a net overspend of 32,000.

The main elements of this are:

Additional Expenditure

Council Tax liability on void properties - 69,000
Additional income from service charges - 29,000

Inflation Provision

9. The budget includes an Inflation Provision of 150,000, after allowing for the 2004 Pay Award and inflation on Back-Funded Superannuation Contributions, a balance of 21,000 remains.

Supplementary Estimates

10. The approved Supplementary Estimates are shown below:-
Pay Award
30,000
Council 20th April 2004
Options Appraisal
20,000
Executive 6th September 2004
Shadow Board working expenses
10,000
Executive 2nd November 2004
Total
60,000
Use of Balances

11. The use of balances is budgeted at 291,000 from the Housing Revenue Account Working Balances. The overspend identified to date and the Supplementary Estimates will require an increased use of balances.

Conclusion

12. The Chief Officer Group will continue to monitor the position closely and take action where appropriate to contain budgets.

Recommendation

It is recommended that

1. the report be received, being the financial position to 31st October 2004;

2. the virements be approved in accordance with paragraph 5 of the report.

________________________________________________________________________

Background Papers (DoF)

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

________________________________________________________________________

CONTACT OFFICER:

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

Comms/Executive/2004-05/308