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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 05/04/2005
BUDGET MONITORING FEBRUARY 2005


Summary & Purpose
This report provides details of the expenditure and income position to the end of February 2005 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


5
APPENDIX [U]
WAVERLEY BOROUGH COUNCIL

EXECUTIVE – 5TH APRIL 2005
_________________________________________________________________________
Title:
BUDGET MONITORING FEBRUARY 2005
[Wards Affected: All]
_________________________________________________________________________
Summary and purpose:

This report provides details of the expenditure and income position to the end of February 2005 compared to budget for the General Fund and the Housing Revenue Account.
_________________________________________________________________________
Quality of life implications – social, environmental & economic (sustainable development):

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

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 February 2005 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.

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General Fund

1. Budget Monitoring for the period 1st April 2004 to 28th February 2005 projects the expected outturn for the year to show an underspend of some £300,000. There are also prior-year adjustments of some £200,000. This is after allowing for the Departmental Housekeeping targets, which should be achieved by the year-end.

2. It should be noted that although the underspend will result in a significant improvement in the working balance for 2004-05, most of the savings are one-off in nature and the resultant effect on the 2005/06 Budget is expected to be an improvement of less than £100,000.

3. The main variations from Budget are shown below:-

£
Additional Expenditure
Development Control
72,000
Additional Legal Expenses for Inquiries
Environmental Cleaning
21,100
Responsive repairs and contract work
The Edge Sports Centre
30,500
Potential increased Business Rates liability
Audit Fees
13,000
Additional work on audit of grant claims
Loss of income
Treasury Management & Bank Charges
16,400
Credit card handling charge – volumes varied since budget prepared
Miscellaneous Properties
48,800
Loss of rental income for Montrose House & Housing tenants fewer properties
Cost of Collection
17,000
Reduction in summonses
Land Charges
165,000
Reduction in the number of searches
Car Parks
14,000
Shortfall in income for year
Easement income
18,000
Can no longer charge for easements
Building Control
10,000
Reduction in Building Control income
Overspends
425,800
Savings
Licensing
-48,000
Delay in implementation of Licensing Act
Homelessness
-100,000
Saving on leased properties and Homelessness Bill expenditure less than anticipated
Officer Manpower
-152,000
Additional savings in excess of target of £240,000 provided for in the Budget
Additional Income
Interest on Balances
-180,000
Additional interest generated
Waverley Training Services
-76,500
Additional income from reimbursements
Development Control
-30,000
Additional planning fee income
Industrial Sites
-51,400
Backdated rent review Sainsburys, Farnham
Waste Recycling
-96,000
Extra recycling income £33,000, Defra grant £63,000
-733,900
Other
-8,900
Anticipated Underspend
-£317,000
Prior Year Adjustment
Housing Benefit
-108,600
Housing Benefit Subsidy claim 2003-04
Car Parks
-100,000
Business Rates revaluation refund
To Balances
-£525,600
Inflation Provision

4. The Budget includes an Inflation Provision of £640,000 including the January 2004 pay award, this was now been fully allocated in the year.


Supplementary Estimates

5. 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

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

7. Included within the Budget for 2004/05 were various target reductions which were achieved. As at the end of February, Officer Manpower had achieved a saving in excess of the £240,000 target included within the Budget by some £152,000.

Use of Balances

8. The use of balances is budgeted at £60,000 from the General Fund working balance and £250,000 from the Revenue Reserve Fund. A potential year-end underspend of £317,000 means that the Supplementary Estimates and slippage of £41,100 from 2003/04 can be financed from the General Fund working balance. Any remaining underspend and the prior-year adjustments will be a contribution to the General Fund working balance.

Housing Revenue Account

9. Budget Monitoring for the period 1st April 2004 to 31st February 2005 has identified a net underspend of £145,000.

The main elements of this are:

£
Additional Expenditure
Supervision & Management
69,000
Council Tax liability on void properties
Options Appraisal
50,000
119,000
Additional Income
Supervision & Management
-29,000
Additional income from service charges
Rents
-32,000
Additional rental income
-61,000
Other
-8,000
Net Overspend
49,000
Prior Year Adjustment
HRA subsidy
-195,000
Additional subsidy from ¾
To Balances
-£145,000
Inflation Provision

10. 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

11. 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

12. The use of balances is budgeted at £291,000 from the Housing Revenue Account Working Balances. After allowing for the Supplementary Estimates it is anticipated that a contribution will be made to balances at year-end.

Conclusion

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

Recommendation

It is recommended that the report be received, being the financial position to 28th February 2005.

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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.
________________________________________________________________________

CONTACT OFFICER:

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



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