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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 09/11/2006
BUDGET MONITORING - SEPTEMBER 2006



Summary & Purpose
This report provides details of the expenditure and income position to the end of September 2006 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 E
Waverley Borough Council

EXECUTIVE - 9TH NOVEMBER 2006

Title:

BUDGET MONITORING - SEPTEMBER 2006
[Wards Affected: All]

Summary and purpose:

This report provides details of the expenditure and income position to the end of September 2006 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 September 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 September 2006 forecasts an underspend for the year of 400,940. This compares with the underspend of 338,310 projected at the previous Budget monitoring report to the end of July, which included additional interest, extra income from Waste Recycling and savings on Homelessness. Further additional interest of 36,000 arising from improved cash-flow and forecast additional car park income of 20,000 contribute to the increased underspend to the end of September.

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 expenditure in the year against the Recreational Open Space grounds maintenance budget.

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


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 Recreational Open Space grounds maintenance budget will be closely monitored during the year. Routine works are being undertaken but few additional works requisitions have been made. Staff shortages, issues with the new contract together with the onset of the winter season may impact on expenditure levels at year-end. The figure of 400,940 does not make any allowance for a potential underspend in this area.

Inflation Provision

6. The Budget includes an Inflation Provision of 308,000; for the period to the end of September 2006 124,510 of this has been allocated.

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 249,300; it is likely that the savings target 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
266,500
Restructure Costs

9. The one-off costs to be met from the Revenue Reserve Fund have now all been paid and these are in line with the estimated figure as approved of 87,000. In order to meet the supplementary estimate of 67,000, net ongoing savings in 2006-07 of at least 20,000 are required. To achieve this, other payments arising from the restructure must be restricted to 64,000. Payments authorised so far projected to the year-end amount to 55,000, leaving 9,000 available for possible further expenditure during 2006-07.

Paid To 30th September
To Year End
’000
’000
Forecast payments to staff
21
51
Payments to Facilitator
3
Legal Fees
1
Balance
9
Total
64

Use of Balances

10. The Budget for 2006-07 includes a contribution of 100,000 from the General Fund working balance. 11. 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 78,130. 12. 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.
13. 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 is Car Park Income. The next monitoring report will revisit progress on planning fee income.

Car Park Income

14. Officers monitor Car Park income on a monthly basis. Attached at Annexe 2 is a table showing Car Park income in detail. For 2006-07 actual income is shown, together with budgeted income for the year and actual income for the previous year. To give an indication of likely income for the whole year, income received to date has been projected forward having regard to previous years levels to give a forecast income position for 2006-07.

15. During the first five months of the year, income from pay and display was affected by the partial closure of Crown Court for resurfacing work in April and subsequently by the growth in on-street parking abuse. However, with the commencement of on-street enforcement in September, income from pay and display has improved significantly and is expected to remain at this higher level for the remainder of the year. Consequently, a surplus of 40,000 from pay and display income is now projected, offset by a projected shortfall of 20,000 from season tickets, resulting in an overall surplus of 20,000.

16. Monitoring of Efficiency Gains

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


000’s
2006/07
Projected Actual for year


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

000’s
Projected
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
520
1,090
2,133
3,170
Housing Revenue Account

17. Budget Monitoring for the period 1st April 2006 to 30th September 2006 has identified an underspend of 178,300.

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

Rent Income/Rebates

19. 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

20. 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

21. 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

22. 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.

23. The annexe shows the original Programme, slippage to be added from 2005-06 and payments to 30th September, with projected expenditure to the year-end. Where appropriate, comments are shown against individual schemes. Expenditure to 30th September is only 1,046,000 representing around 20% 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 1.3m to 2007-08 is planned. This includes Weyhill Car Park 450,000; Godalming Leisure Centre 537,000; Farnham Maltings 173,000; PDG 40,000; Housing Needs Survey 40,000; Cemeteries Risk Assessment 20,000; and some Information Technology expenditure.

Capital Programme Summary
’000
Approved Capital Programme5,617
Forecast Spend4,222
Forecast Slippage1,285
Estimated Savings 110
5,617

Housing Revenue Account

24. The Housing capital monitoring group meets on a regular basis looking at all areas of housing-related capital. An underspend of 30,000 on refurbishments of homeless hostels is likely. A more comprehensive review is to be undertaken of refurbishment/remodelling required at existing accommodation for the homeless other than Chapel Court.

Revenues Cash Collection

National Non-Domestic Rates

25. The net cash collected in the financial year to 30th September 2006 was 18,269,022. When compared with a net collectable debit at 31 July 2006 of 31,000,064, this represents a collection rate of 58.93%. The comparable collection rate in the previous financial year was 57.85%.


Council Tax

26. The net cash collected in the financial year to 30th September 2006 was 40,097,644. When compared with a net collectable debit at 31 July 2006 of 67,810,029, this represents a collection rate of 59.13%. The comparable collection rate in the previous financial year was 58.50%.

Conclusion

27. For the General Fund, at this point in the year, a projected overall underspend for the year of 400,940 from the approved Budget is forecast: the main elements of this are additional interest; extra income from Waste Recycling; and savings on Homelessness due to planned reductions in the use of private properties.

28. 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 expenditure in the year against the Recreational Open Space grounds maintenance budget.

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

30. 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 September 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/2006/07/177