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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 05/09/2006
BUDGET MONITORING JULY 2006



Summary & Purpose
This report provides details of the expenditure and income position to the end of July 2006 compared with the 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 - 5TH SEPTEMBER 2006
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Title:
BUDGET MONITORING JULY 2006
[Wards Affected: N//A]
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Summary and purpose:

This report provides details of the expenditure and income position to the end of July 2006 compared with the 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.
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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 July 2006 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 spend is also given.

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General Fund

1. Budget Monitoring for the period 1st April 2006 to 31st July 2006 forecasts an underspend for the year of 338,310. This includes additional interest, extra income from Waste Recycling and savings on Homelessness due to planned reductions in the use of private properties.

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

3. The outturn report for 2005-06 considered by Members in June 2006 highlighted outturn variances which were expected at that time to continue into 2006-07. These are listed in Annexe 1 with commentary on the current estimated position.



Housing Benefits

4. The 2006-07 budget already allows for the new subsidy arrangements for Housing Benefits with additional income built in of 190,000 and no further improvement should be anticipated.

Target Areas

5. For 2006-07, each monitoring report will focus on a Target Area with the aim of giving more detailed analysis and understanding of the featured area. For this report the Target Area is Planning Income.

Planning Income

6. Attached at Annexe 2 is a table showing planning income for the current and previous years. For 2006-07 actual income is shown alongside budgeted income for the year. To give an indication of likely income for the whole year, income received to date has been projected forward having regard to previous years levels to give a forecast income position for 2006-07. As at the end of July that forecast is 728,403 compared with the budget of 680,000. Therefore, additional income of 50,000 has been included within the total projected underspend for the year identified to the end of July.

7. As shown by the annexe, planning income is difficult to predict and any large schemes could significantly increase the income received for the year. The figure of 50,000 does not take account of several large applications which are expected later this year. A report elsewhere on the agenda provides details of proposals to utilise the additional income for extra staff resources.

8. Planning income will continue to be monitored closely and any significant changes to the position identified above will be reported in future monitoring reports.

Supplementary Estimates

9. The approved Supplementary Estimates are shown below:-
ServiceAmount
Balance of Pay Increase
43,000
Council 9th May 2006
Restructure Saving
-20,000
Council 9th May 2006
Restructure Costs
87,000
Council 9th May 2006
Godalming Leisure Centre
136,500
Council 9th May 2006
246,500
Inflation Provision

10. The Budget includes an Inflation Provision of 308,000, for the period to the end of July 2006 123,880 of this has been allocated.



11. Target Reductions
Target
Status
Officer Manpower
300,000
The current identified shortfall is 145,190, it is hopeful that the shortfall will be achieved by the year-end
Planning Staff budget reduction
45,000
Unlikely to be achieved – see separate report
Procurement savings
10,000
Work being undertaken

Use of Balances

12. The Budget for 2006-07 includes a contribution from the General Fund working balance of 100,000.

Housing Revenue Account

13. Budget Monitoring for the period 1st April 2006 to 31st July 2006 has identified an underspend of 76,000.

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

Rent Rebates

15. Annexe 3 forecasts additional Rent Rebates expenditure of 215,000. Early indications are that rent rebate payments will be higher than the original estimate. The effect of this, in conjunction with a slightly higher than estimated average rent, is to increase the penalty that the Housing Revenue Account incurs due to the average rent being higher than the Government’s limit rent. An increased amount in respect of rent rebate subsidy must be paid to the General Fund.

Inflation Provision

16. As at the end of July the call on the Inflation Provision is 810.

17. Target Reductions
Target
Status
Savings Target
212,000
Staff savings of 28,500 achieved to date
Use of Balances

18. At the end of July the position on the Housing Revenue Account shows a net underspend of 76,000, this will contribute towards the savings target.

Capital Programme


19. A detailed Capital Monitoring Report for the first half-year will be presented to the Executive on 7th November 2006.

20. The Management Team has received reports from the cross-departmental groups responsible for monitoring the Capital Programme. Within the General Fund Programme, there are no variances to report at this stage with the exception of the Weyhill Car Park scheme, which will now slip into 2007-08. This is because of the need to co-ordinate the scheme with proposals from Surrey County Council regarding the community centre. The car park works are to be financed from prudential borrowing met from income from charges and so the timing of the scheme has no budgetary impact.

Housing Revenue Account

21. The Housing capital monitoring group meets on a regular basis looking at all areas of housing-related capital. At this early stage it is not anticipated that there will be any significant variances in the year. Of the 940,000 allocated to Social Housing Grant, 505,000 has already been committed to the development at the Godalming College Site.

Revenues Cash Collection

National Non-Domestic Rates

22. The net cash collected in the financial year to 31 July 2006 was 12,609,087. When compared with a net collectable debit at 31 July 2006 of 30,952,212, this represents a collection rate of 40.74%. The comparable collection rate in the previous financial year was 39.57%.

Council Tax

23. The net cash collected in the financial year to 31 July 2006 was 27,173,058. When compared with a net collectable debit at 31 July 2006 of 67,761,169, this represents a collection rate of 40.10%. The comparable collection rate in the previous financial year was 39.59%.

Conclusion

For the General Fund, at this point in the year, a projected overall underspend for the year of 338,310 from the approved Budget is forecast: the main elements of this are additional interest; extra income from Waste Recycling; and savings on Homelessness due to planned reductions in the use of private properties.

Potential further factors that may impact on the underspend include the actual implementation costs of alternate weekly refuse collection and the full effect of this on income from Waste Recycling; possible further changes to interest rates; and decisions to be taken regarding Planning income and expenditure.

The position for the Housing Revenue Account at the end of July shows a projected net underspend for the year of 76,000, this will contribute towards the savings target in the year.

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 and Housing Revenue Account to the 31st July 2006 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: Brian Long Telephone: 01483 523253

E-mail: blong@waverley.gov.uk



comms\executive\2006-07\124.doc