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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 04/03/2008
BUDGET MONITORING JANUARY 2008



Summary & Purpose
This report provides details of the expenditure and income position to the end of January 2008 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 B
Waverley Borough Council

EXECUTIVE - 4TH MARCH 2008

Title:

BUDGET MONITORING JANUARY 2008
[Portfolio Holder for Finance: Cllr M H W Band]
[Wards Affected: All]

Summary and purpose:

This report provides details of the expenditure and income position to the end of January 2008 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.

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 of January 2008 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 expenditure is also given.

General Fund

1. The position to the end of January forecasts an underspend at the year-end of 769,590. This is an increase from the November monitoring which forecast an underspend of 542,010.

2. The main elements of this are additional interest; additional Land Charges income; other areas of additional income; an underspend on the Grounds Maintenance budget; offset by additional expenditure on Legal and other Planning Fees.

3. The increased underspend is unlikely to have any significant effect on the 2008-2009 Budget. 400,000 relates to additional interest in 2007-2008 and the scenario for next year is different, with balances reducing and interest rates forecast to decline further.

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

5. The Budget includes an Inflation Provision of 480,000. This covers all of the known major cost increases. To date some 301,000 of the provision has been allocated, this includes the allocation for the year on all the main contracts. This use is in line with the amounts provided for within the Inflation Provision. However, an underspend of some 50,000 is anticipated and included in the underspend reported above.

Target Reductions

6. The table below shows the target reduction included in the Budget for 2007-08 together with the level of achievement to date.

Target
Status
Staffing savings target - General Fund
300,000
Amount achieved to 31st January is 265,000. It is likely that the target will be fully achieved by the year-end.

Supplementary Estimates

7. The approved Supplementary Estimates are shown below:-
ServiceAmount
Undershaw Hotel
65,000
Executive 9th January 2007
Dunsfold Park legal costs
80,000
Executive 4th September 2007
Website Manager
18,000
Executive 10th July 2007
Charges for Planning services
52,000
Executive 10th July 2007
215,000
Use of Balances

8. The Budget for 2007-08 includes a contribution of 450,000 from the General Fund working balance. 9. The underspend, together with the Supplementary Estimates identified at paragraph 7 and the revenue carry forward from 2006-07 to 2007-08 of 144,210, gives a forecast contribution from balances at 31.3.08 of 39,620. 10. The use of the Revenue Reserve Fund will be as budgeted at 150,000. 11. Local Authority Business Growth Incentive (LABGI) Grant, in respect of 2006-07, of 913,000 was received in February 2007 and a further 97,000 was announced and received in August 2007. The 97,000 received this year will be transferred to the Revenue Reserve Fund in line with Council policy; the 913,000 having been transferred there during 2006-07. 12. The updated position regarding the level of the General Fund Working Balance including projections in line with the Financial Strategy, as amended by Council on 19th February 2008, is shown at Annexe 2. This shows an improvement of 555,000 from the budget as originally set and an improvement of 227,000 from the Forecast in the previous Budget Monitoring report to the 30th November.

Housing Revenue Account

13. The major variations identified are attached at Annexe 3, showing an underspend of 100,600. This is before vacancy savings, which will be in the region of 100,000, resulting in an overall underspend of 200,600.

Use of Balances

14. The Budget for 2007-08 includes a contribution of 80,910 from the Housing Revenue Account working balance. The underspend, together with the revenue carry forward from 2006-07 to 2007-08 of 90,000, gives a forecast contribution to balances at the year-end of 29,690 as follows:


Cyclical Maintenance

15. There is likely to be an underspend of 150,000 on the external decorating/external envelope work due to poor contractor performance that is now being resolved. Carry forward of this amount into 2008-09 is requested in order that all the proposed work is carried out.

Capital Programme

16. The detailed monitoring report for the General Fund Capital Programme is attached at Annexe 4.

17. Expenditure to the end of January is some 2.1million, compared with a total approved Programme of 7.16million. However, as reported to the Executive previously, some 2.8million of expenditure has been rescheduled to 2008-2009. In the main, this arises from the Leisure Strategy with the main refurbishment programme rescheduled to follow the new contract commencing July 2008. Additional slippage concerning some Information Technology projects and Partnership Funding Grants is now forecast, bringing total slippage to just over 3million. As the notes to Annexe 4 indicate, a substantial part of the remaining Programme is scheduled to be delivered during the final two months of the year.

Housing Revenue Account

18. The latest position on health and safety and decent homes work currently shows expenditure of some 4million from a total programme of 7.3million. There may be potential for an overspend of 250,000. However, in some areas there is still a large volume of work to be completed and this volume can be managed to bring the programme in on budget.

19. The 50,000 budget for refurbishment of homeless hostels will not be spent as no programme of work has been identified.

Revenues Cash Collection

National Non-Domestic Rates

20. The net cash collected in the financial year to 31st January 2008 was 30,436,155. When compared with a net collectable debit at 31st January 2008 of 31,765,168, this represents a collection rate of 95.82%. The comparable collection rate in the previous financial year was 95.25%.

Council Tax

21. The net cash collected in the financial year to 31st January 2008 was 68,301,935. When compared with a net collectable debit at 31st January 2008 of 71,064,855, this represents a collection rate of 96.11%. The comparable collection rate in the previous financial year was 95.86%.
Conclusion

22. The continued improvement to the monitoring position is in line with the trend reported in the Budget Monitoring reports throughout the year. This is the final Budget Monitoring report for 2007/2008 and does reflect the projected position to the year-end.

23. However, previous experience indicates that the outturn reported with the final accounts for the year is likely to show an underspend of a moderately higher magnitude.

Recommendation

It is recommended that the current monitoring position for the General Fund Revenue Account, Housing Revenue Account and Capital Programme be noted.

Background Papers (DoR)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

CONTACT OFFICER:

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


Comms/exec/2007-08/261