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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 06/04/2004
Budget Monitoring - February 2004



Summary & Purpose
This report provides details of the anticipated outturn position at the year end based on the actual expenditure and income position at the end of February 2004.

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
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APPENDIX O
WAVERLEY BOROUGH COUNCIL

EXECUTIVE 6TH APRIL 2004

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Title:

BUDGET MONITORING – FEBRUARY 2004
[Wards Affected: All]
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Summary and purpose:

This report provides details of the anticipated outturn position at the year end based on the actual expenditure and income position at the end of February 2004.

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E-Government implications:

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

Resource and legal implications:

This report monitors the progress of income and expenditure to the end of February 2004 for the General Fund and the Housing Revenue Account, showing the latest position regarding the budgeted target reductions and projecting the likely year-end position.

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General Fund

1. The February budget monitoring exercise has identified a potential net overspend of 164,000 at the year-end compared with the approved budget. This includes the 120,000 target reduction built into the budget and is a marginal improvement from the probable position identified in the previous budget monitoring report.

2. The budget monitoring report identifies the following main elements of the overspend as:

Target reduction – overspend 120,000 (target reduction built into budget not achieved);
Waverley Training Services – overspend 62,000 (an improved position since originally identified);
Miscellaneous Properties – overspend 50,000 (Montrose House loss of rent income);
Land Charges income – overspend 100,000 (reduced income from fees);
Development control – overspend 104,000 (reduced income from fees and increased Inquiry and appeal costs);
Car Parks – underspend (100,000) [increased income from increased charges 1/12/03];
Land Drainage capital scheme not going ahead – underspend (56,000) [revenue saving resulting from not going ahead].

3. Target reductions of 240,000 are included in the Officer Manpower budget. It is expected that the target will be achieved at the year-end and a further planned saving of 21,000 will be achieved.

Inflation Provision

4. 312,830 has been allocated at the end of February from the inflation provision of 320,000.

Supplementary Estimates

5. The approved supplementary estimates are shown below:
Partnership Funding Officer
36,000
Executive 10/12/02
Partnership Funding – Revenue Budget
2,500
Executive 10/12/02
Licensing Admin 400 Hours
12,000
Executive 23/06/03
Emergency Planning – rest centre training
5,000
Executive 01/04/03
Waste Recycling
20,000
Council 15/04/03
WRVS – Meals on Wheels
3,500
Executive 21/07/03
Waste Recycling – Hard-to-Reach properties
19,000
Executive 01/09/03
Audit Commission Fees
57,700
Executive 02/12/03
Insurance Premium
66,390
Executive 02/12/03
Total
222,090
Use of balances

6. The use of balances, budgeted at 329,000, will increase to 551,090 as a result of the supplementary estimates above and, as a result of the projected 164,000 overspend, may be further increased to 715,090. This would result in a working balance of some 824,000.

Housing Revenue Account

7. The budget monitoring process has identified a net deterioration compared with budget of some 293,000. This is principally as a result of reductions in rental income of 250,000 from dwellings and 50,000 from garages. Increased sales of properties under the right to buy scheme and high levels of voids earlier in the year are the main contributory factors. There has been no further deterioration since the previous budget monitoring report

Conclusion

General Fund

8. There has been no significant change from the potential year-end position identified in the previous budget monitoring report. This will cause a position some 164,000 worse than budget but Members are reminded that at one stage the likely position was an overspend in excess of 500,000. Clearly the actions taken previously have had a marked degree of success and have contributed to the improved position although, at this stage, the predicted overspend remains significant. However, action is still being taken to minimise the overspend, in particular to ensure that expenditure falling in the last weeks of the financial year is essential expenditure.

Housing Revenue Account

9. Current indications are that income will fall short of budget by some 293,000 as set out in this report. This position remains largely unchanged from the previous budget monitoring exercise.

Recommendation

It is recommended that the Executive agrees that the probable outturn position be noted.

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Background Papers (DoF)

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

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CONTACT OFFICER:

Name: Mr B Long Telephone: 01483 523253

E-mail: blong@waverley.gov.uk

Comms/Executive/2003-04/525