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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 27/06/2006
ANNUAL ACCOUNTS 2005/06
CAPITAL PROGRAMME OUTTURN (GENERAL FUND, HOUSING REVENUE ACCOUNT AND
LA SOCIAL HOUSING GRANT)



Summary & Purpose
This report presents the outturn for the Council’s 2005/06 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 2005/06 programme to the 2006/07 programme.

APPENDIX E.2
Waverley Borough Council

EXECUTIVe – 27TH jUNE 2006
_________________________________________________________________________
Title:
ANNUAL ACCOUNTS 2005/06
CAPITAL PROGRAMME 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 2005/06 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 2005/06 programme to the 2006/07 programme.

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Environmental implications:

There are no direct environmental implications as a result of the recommendation of this report. However, the outturn includes services that have very significant positive environmental benefits.

Social / community implications:

There are no direct social/community implications as a result of the recommendation of this report. However, the outturn includes services that do have very significant positive social/community benefits.

E-Government implications:

The outturn contains budgets to enable the delivery of Waverley’s E-Government Strategy.

Resource and legal implications:

There are no direct legal implications as a result of the recommendation of this report. Resource implications are contained throughout the report.
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Introduction

1. This report presents the outturn for the Council’s 2005/06 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 2005/06 Programme to the 2006/07 Programme.

2. Details of the 2005/06 Capital Programme Outturn, together with the proposed slippage of budgets from 2005/06 to 2006/07 are detailed at Annexe 1. The financing proposals are summarised in the report.


General Fund Capital Programme

3. The original approved Programme for 2005/06 was 3,313,000; to which was added slippage from 2004/05 and supplementary approvals during the year of 50,730 for the Playground Replacement Programme, 200,000 for Recycling Containers and 1,075,000 for purchase of the former Health-centre Site.

4. The total budget at the year-end was 4,979,330. Actual expenditure in the year was 3,759,646, with slippage requests totalling 1,078,528.

5. The above figures include assets totalling 144,216 bought from within existing approved revenue budgets such as equipment, but which are now required to be treated as capital expenditure for accounting purposes. These have therefore been included within the Capital Programme, but funded from equivalent revenue contributions with no overall effect on the Revenue accounts.

Housing Revenue Account Capital Programme 6. Total capital expenditure in the year was 7,359,895 against an overall capital budget of 7,262,030. The commitment to spend 3.8 million on decent homes work in the year was achieved together with a very large programme of disabled adaptations. The contract for the major refurbishment of the Cedar Lodge hostel for the homeless is on target and completing in April/May 2006. 7. Waverley’s element of the Kilnfields regeneration was completed during the year with all tenants now in their new homes. Agreed variations have resulted in an overspend of the budget allowed for 2005/06 with the final account still to be negotiated and agreed. However, Waverley’s element of the scheme, including the provision of two ‘excellent’ rated eco-homes, will have been achieved for a net cost of less than 3 million and within the budget reported to Members in 2002.

8. The programme was funded from the Major Repairs Allowance of just under 3.5 million, Capital Receipts of just under 3.3 million and Revenue Contributions of some 600,000.

Financing

9. The financial resources available were as follows:-

(a) Usable capital receipts; (c) other external funding;
(d) the Major Repairs Allowance; and
(e) 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.

10. The Council's total Capital Programme expenditure amounted to 11,876,531 and it is proposed to finance this as follows:-

Use of Capital Receipts
5,177,030
Use of Revenue Reserve Fund
1,233,508
Use of Capital Fund
67,808
Use of Vehicle Renewals Fund
23,891
Specific Grants and Contributions
555,388
Partnership Funding Provision
333,307
Major Repairs Allocation
3,657,492
Revenue Contribution from HRA
595,950
Revenue Contributions from General Fund
232,157
11,876,531

Use of Capital Receipts

11. After allowing for the funding of schemes from other sources, there remained a balance of 3,083,953 Housing Revenue Account schemes to be funded from Housing Capital Receipts. Housing Capital Receipts have also been used to finance Social Housing Grant (DIYSO) at 756,990 and the purchase of the former Health-centre Site at Farnham at 1,075,000. General Fund Capital Receipts have been used to finance House Renovation Grants (153,678), the East Street and Riverside projects (107,409).

Minimum Revenue Provision

12. Local authorities are required to make a Minimum Revenue Provision for credit liabilities each year, i.e. repay outstanding external debt at a level that is based on a formula. This is mandatory for General Fund debt and voluntary for HRA debt.

13. For the financial year 2005/06 the Waverley Minimum Revenue Provision is:-

General Fund
0
Housing Revenue Account *
71,678
* Voluntary MRP based on 2% of the outstanding balance of the HRA notional debt.
Slippage

14. Total slippage of 1,078,528 has occurred on specific General Fund schemes and there are, therefore, recommendations for this to be added to the Capital Programme for 2006/07. This figure includes a total of 244,000 of Partnership Funding and other grants, the timing of which is outside of Waverley’s control. Significant slippage of 339,000 has also occurred in the area of Electronic Government for Customer Services, although the Council is still on target to meet Government requirements. 112,000 of the slippage relates to Waste Recycling Containers, for which a total of 300,000 has been approved spanning the two financial years. 15. Slippage of the balance of the Social Housing Grant (SHG) programme is requested as there were several DIYSO applications in preparation at the end of the financial year.

Recommendation

It is recommended that:-

1. the financing proposals for the 2005/06 financial year summarised in paragraph 10 be approved;

2. slippage totalling 1,078,528 as detailed in Annexe 1, from the 2005/06 General Fund Capital Programme to the 2006/07 General Fund Capital Programme be approved; and

3. slippage totalling 243,000 as detailed in Annexe 1, from the 2005/06 to the 2006/07 Social Housing Grant Capital Programme be approved.

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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/exec/2006-07/062