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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 09/07/2002
Capital Programme 2001/02 Outturn (General Fund, Housing Revenue Account and LA Social Housing Grant)



This report presents the Outturn for the Council’s 2001/02 Capital Programme. It also seeks approval for the financing proposals, determination in respect of the Minimum Revenue Provision and a proposal to add slippage from the 2001/02 programme to the 2002/03 programme.
APPENDIX R
WAVERLEY BOROUGH COUNCIL

EXECUTIVE - 9TH JULY 2002



Title:
CAPITAL PROGRAMME 2001/02 OUTTURN
(GENERAL FUND, HOUSING REVENUE ACCOUNT AND
LA SOCIAL HOUSING GRANT)
[Wards Affected: N/A]
___________________________________________________________________

Summary and Purpose

This report presents the Outturn for the Council’s 2001/02 Capital Programme. It also seeks approval for the financing proposals, determination in respect of the Minimum Revenue Provision and a proposal to add slippage from the 2001/02 programme to the 2002/03 programme.


1. Details of the 2001/02 Capital Programme Outturn, together with the financing summary are shown as attached at Annexe 1. The resultant slippage of ongoing schemes from 2001/02 to 2002/03 is detailed at Annexe 2.

2. The financial resources available were as follows:-

(a) Usable capital receipts; (d) any revenue resources, including the Revenue Reserve Fund, the Capital Fund, the Matched-Funding Provision and the Vehicle Renewals Fund, as well as direct revenue contributions.

3. The Council's total Capital Programme expenditure amounted to 5,773,735 and it is proposed to finance this as follows:-
4. Based on the above information, the Council has to make determinations under Part IV of the Local Government and Housing Act 1989 prior to 30th September each year relating to capital expenditure (as above), the use of credit approvals, capital receipts and the amount set aside from revenue accounts as follows:-

Use of Capital Receipts

5. After allowing for the funding of schemes from other sources, there remained a balance of 620,020 Housing Revenue Account schemes to be funded from capital receipts. The 140,474 balance of expenditure on improvement grants after using specific Government grant will be financed from the Debt Redemption Reserve Account established for this purpose (an equivalent amount of usable capital receipts will need to be applied).

Minimum Revenue Provision

6. Local authorities are required to make a Minimum Revenue Provision for credit liabilities each year, i.e. repay outstanding external debt at a level which is based on a formula using 2% of the outstanding balance of Housing Revenue Account debt and 4% of General Fund debt. However, in the case of Waverley’s General Fund, the Provision for Credit Liabilities now exceeds the external debt and the Minimum Revenue Provision therefore is zero.

7. For the financial year 2001/02 the Waverley Minimum Revenue Provision is:-
8. During this period the Council set aside the following amount from revenue accounts to the provision for credit liabilities and thus complied with the legislation:

Slippage

9. Total slippage of 3,315,640 has occurred from the Revised Estimate and there are, therefore, recommendations for this to be added to the capital programme for 2002/03. The most significant slippage is in the LA SHG programme where only 50% of the Revised Estimate was achieved by 31st March 2002. By its nature, this area is particularly susceptible to external factors and once again this proved to be the case in 2001/02.

10. Overall net slippage of 725,800 is required within the General Fund, comprising total slippage of 749,300 offset by acceleration of 23,500 for five schemes where expenditure budgeted for 2002/03 has been incurred in 2001/02 and the 2002/03 programme will be reduced accordingly. Slippage of 380,000 relates to matched-funding schemes, delivery of which is not within the Council’s control. The most significant slippage to have occurred within other General Fund schemes is the grant of 150,000 towards the Farnham all-weather pitch, which is also beyond the Council’s control.


Recommendation

It is recommended that:-

1. the financing proposals for the 2001/02 financial year summarised in paragraph 3 and detailed in Annexe 1 to the report be approved;

2. the determinations in this report for the financial year 2001/2002 be approved;

3. slippage totalling 725,800 (net) as detailed in Annexe 2 from the 2001/02 General Fund Capital Programme to the 2002/03 General Fund Capital Programme be approved;

4. slippage totalling 1,526,480 as detailed in Annexe 2 from the 2001/02 to the 2002/03 Housing Revenue Account Capital Programme be approved; and

5. slippage totalling 1,063,360 as detailed in Annexe 2 from the 2001/02 to the 2002/03 LA SHG Capital Programme be approved.



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


comms/executive/2002-03/080 28906