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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 07/02/2005
Budget Monitoring



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



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 December 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.

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General Fund


1. Budget Monitoring for the period 1st April to 31st December 2004 projects the expected outturn for the year to show an underspend of some 55,000. 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.
Environmental Cleaning – additional costs for responsive repairs and contract work amounting to 21,100.
The Edge Sports Centre – an increased Business Rates liability of 30,500 has arisen and the consequences of this will need to be resolved.
Homelessness – a net saving of 100,000 has been identified. Most of this is attributable to an underspend on rent for leased properties. The budget allowed for the take on of new leased properties which has not been necessary. Other savings relate to the cost of the Homelessness Bill being less than anticipated.
Officer Manpower – the Budget provides for a target reduction of 240,000. Current projections identify additional savings in excess of this of some 85,000.
Miscellaneous Properties – rental income for Montrose, loss to date 30,500.
Land Charges – a reduction in the number of searches resulting in a loss in income of 125,000 (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


Target Reductions

5. 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

6. 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. If the underspend of 55,000 is achieved, the use of the Revenue Reserve Fund will be approximately 450,000.

Housing Revenue Account

7. Budget Monitoring for the period 1st April 2004 to 31st December 2004 has identified a net overspend of 82,000.

The main elements of this are:

Additional Expenditure

Council Tax liability on void properties - 69,000
Options Appraisal - 50,000
Additional income from service charges - 29,000

Inflation Provision

8. 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

9. 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

10. 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

11. 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 31st December 2004.

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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/exec/04-05/398