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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 09/01/2007
BUDGET MONITORING NOVEMBER 2006



Summary & Purpose
This report provides details of the expenditure and income position to the end of November 2006 compared with 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 - 9TH JANUARY 2007

Title:

BUDGET MONITORING NOVEMBER 2006
[Wards Affected: All]
Summary and purpose:

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

General Fund

1. Budget Monitoring for the period 1st April 2006 to 30th November 2006 forecasts an underspend for the year of 527,470. This compares with the underspend of 400,940 projected at the previous Budget Monitoring report to the end of September. The main elements of the increase arise from the previously un-quantified underspend on Recreational Open Space of 87,000; further savings, totalling 25,000, on Waste Recycling; and additional Licensing income received of 22,500.

2. Potential further factors that may impact on the underspend include the actual implementation costs of alternate weekly refuse collection and the full effect of alternate weekly collection on income from Waste Recycling; possible further changes to interest rates; and the final expenditure in the year against the Recreational Open Space grounds maintenance budget. Savings may also arise on the Emergency Services budget at year-end.

3. The main projected variations from Budget are shown in the table at Annexe 1. This table also shows the estimated impact in 2007/8. The latest projected impact for 2007/8 is 720,000, which exceeds the previous figure already taken into the draft Budget by approximately 90,000. These items are included in the reductions list annexed to the Budget report.

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.

Recreational Open Space

5. The underspend identified above includes a projected saving at the year-end of 80,000 on Grounds Maintenance. This includes some 30,000 relating to tree works, arising from the establishment of a dedicated tree gang within the Borough. Unusually, savings of 12,000 have been achieved from improvements to some of the specification standards within the contract. The carry forward from 2005-06 of 15,000 remains unspent and the Security Patrol budget of 5,400 has not been required this year. Staff shortages, contractor work standards and the winter season have had an impact on expenditure levels. All routine works are being undertaken in accordance with the contract, but few additional works requisitions have been made so far this year. The figure of 80,000 does, however, allow for substantial additional works, now planned, being undertaken by the end of March.

Inflation Provision

6. The Budget includes an Inflation Provision of 308,000; for the period to the end of November 2006 some 261,000 of this has been allocated. This does cover all of the known major cost increases.

Target Reductions

7. The table below lists the target reductions included in the budget for 2006-07 together with the level of achievement to date.

Target
Status
Officer Manpower
300,000
The current identified savings are 258,100; it is likely that the shortfall will be achieved by the year-end
Planning Staff budget reduction
45,000
Will not be achieved - met by virement from additional income
Procurement savings
10,000
Work being undertaken - should be achieved

Supplementary Estimates

8. The approved Supplementary Estimates are shown below:-




ServiceAmount
Balance of Pay Increase
43,000
Executive 4th April 2006
Chief Executive Redundancy
-20,000
Council 9th May 2006
Godalming Leisure Centre
136,500
Executive 4th April 2006
Restructure
87,000
Council 9th May 2006
Cranleigh Arts Centre
20,000
Executive 10th October 2006
Local Government White Paper
20,000
Executive 9th November 2006
Leisure Procurement Strategy Implementation
51,000
Executive 5th December 2006
337,500
Use of Balances

9. The Budget for 2006-07 includes a contribution of 100,000 from the General Fund working balance. 10. The underspend, together with the Supplementary Estimates identified at Paragraph 8 and the revenue carry forward from 2005-06 to 2006-07 of 43,310, gives a forecast contribution to balances at the year end of 133,660. 11. The use of the Revenue Reserve Fund is budgeted at 250,000, with a further 330,000 by way of abatement of capital repayments made from the General Fund. The one-off costs of 87,000 for the Restructure will be met from the Revenue Reserve Fund.
12. For 2006-07, each monitoring report will focus on a Target Area with the aim of giving more of an in-depth analysis and understanding of the featured area. For this report the Target Area revisits Planning Income.

Planning Income

13. Attached at Annexe 2 is an updated table showing planning income for the current and previous years. Income received to date has been projected forward to give a forecast income position for 2006-07. As at the end of November forecast income is 739,850 compared to the budget of 680,000. Therefore, additional income of 60,000 is reported.

14. 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 60,000 does not take account of several large applications that are expected later this year. However, it is likely that some of the additional income would need to be spent on extra staffing to deal with these applications.

15. Monitoring of Efficiency Gains

2006-07 Efficiency Gain Monitor
2006/07 Actual to 30 Nov 06




000’s
2006/07
Projected Actual for year



000’s
Projected Cumulative to date
2004/05 to 2006/07


000’s
Projected cumulative over Govt. measurement period 2004/05 to 2007/08
000’s
Gershon Target
258
516
1,033
1,550
WBC Target (reported Feb 06)
502
1,004
1,983
3,020
Latest estimate
690
1,075
2,115
3,120
Housing Revenue Account

16. Budget Monitoring for the period 1st April 2006 to 30th November 2006 remains unchanged with an identified underspend of 178,300.

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

Rent Income/Rebates

18. Annexe 3 forecasts additional Rent Income of some 200,000 that Waverley will not benefit from in full due to the anticipated increase in Rent Rebates expenditure of some 150,000. An increased amount in respect of rent rebate subsidy limitation must be paid to the General Fund. Target Reductions

19. The table below shows the target reduction included in the Housing Revenue Account budget for 2006-07 together with the level of achievement to date.

Target
Status
Savings Target
212,000
Staff savings achieved to date
-28,500
Option Re-Appraisal costs
-30,000
Re-appraisal managed internally
Balance of Savings Target
153,500


Use of Balances

20. At the end of September the position on the Housing Revenue Account shows a net underspend of 178,300; this will contribute towards the savings target.

Capital Programme

21. The Management Team has received reports from the cross-departmental groups responsible for monitoring the Capital Programme. The detailed monitoring report for the General Fund Capital Programme is attached at Annexe 4.

22. The annexe shows the original Programme, slippage to be added from 2005-06 and payments to 30th November. Where appropriate, comments are shown against individual schemes. Expenditure to 30th November is only 1,464,000, representing around 25% of the approved Programme. However, a significant proportion of works are planned in the later part of the year: including Farnham Sports Centre; Playground Replacement; and DDA and security access works to the central offices. Slippage of some 1.5m to 2007-08 or later is planned. This includes Weyhill Car Park 450,000; Godalming Leisure Centre 537,000; Farnham Maltings 173,000; other Community Partnership Funding Schemes 100,000; Playground Replacement Programme 152,000; Farnham Leisure Centre 100,000; Security Access and related works to the Central Offices 43,000; PDG 40,000; Cemeteries Risk Assessment 20,000; and expenditure on Information Technology amounting to some 120,000.

Capital Programme Summary
’000
Approved Capital Programme5,697
Forecast Spend3,797
Forecast Slippage1,800
Estimated Savings 100
5,697

Housing Revenue Account

23. The Housing capital monitoring group meets on a regular basis looking at all areas of housing-related capital. Currently all large programmes are on target. The electrical contractor is going to provide additional teams to ensure that the budget is spent. New heating and rewiring contacts are due to start in the New Year.

Revenues Cash Collection

National Non-Domestic Rates

24. The net cash collected in the financial year to 30th November 2006 was 21,095,094. When compared with a net collectable debit at 30th November 2006 of 30,962,771, this represents a collection rate of 68.13%. The comparable collection rate in the previous financial year was 67.05%.


Council Tax

25. The net cash collected in the financial year to 30th November 2006 was 46,486,658. When compared with a net collectable debit at 30th November 2006 of 67,773,368, this represents a collection rate of 68.59%. The comparable collection rate in the previous financial year was 67.69%.

Conclusion

26. For the General Fund, a projected overall underspend for the year of 527,470 from the approved Budget is forecast: the main elements of this are additional interest; extra income from Waste Recycling; savings on Homelessness, due to planned reductions in the use of private properties and improved targeting of expenditure, following the success of Waverley’s strategy to reduce homelessness; reduced expenditure on Recreational Open Space Grounds Maintenance; additional Car Park income and Licensing income.

27. Potential further factors that may impact on the underspend include the actual implementation costs of alternate weekly refuse collection and the full effect of alternate weekly collection on income from Waste Recycling; possible further changes to interest rates; and the final expenditure in the year against the Recreational Open Space grounds maintenance budget. Savings may also arise on the Emergency Services budget at year-end.

28. The position for the Housing Revenue Account at the end of November shows a projected net underspend for the year of 178,300 and this will contribute towards the savings target in the year.

29. 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 Revenue Account, Housing Revenue Account and Capital Programme to 30th November 2006 be noted.

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: Brian Long Telephone: 01483 523253

E-mail: blong@waverley.gov.uk





Comms/exec/2006-07/272