Agenda Item No______11______
2012/13 REVISED BUDGET
Summary:
The base budget for 2012/13 was approved by Full
Council on 22 February 2012. The budget was updated
as part of the 2011/12 final accounts report for the carry
forward of funding from the year end process. The
budget has continued to be monitored throughout the
year to date and reported to Members accordingly. This
report now presents for approval the 2012/13 revised
budgets for revenue and capital.
Options considered:
Not reporting the revised budget – recommending a
revised budget during the year provides an opportunity
to critically review all budgets and to ensure spend and
income budgets reflect current service plans and
objectives. Due to the significant budget movements in
the year in particular the service restructurings following
the management restructure and the outcome of the pay
and grading review, this thorough review during the year
provides a mechanism to ensure the reported budget is
accurate and enables meaningful budget monitoring for
the remainder of the year.
Conclusions:
The revised budget shows a small underspend of
£1,398 for the current financial year and will be
transferred to the general reserve in the year.
Recommendations:
That Members agree and recommend to Full
Council:
1) The revised revenue budget for 2012/13;
2) The revised transfers to and from reserves as
detailed within Appendix D;
3) A transfer of £1,398 to the general reserve;
4) The revised capital programme and associated
financing as included at Appendix E including
the additional sum of £37,084 be made available
to fund refurbishment works to the Rocket
House, to include the full renewal and upgrade
of the lift system and £21,000 for the
replacement scanner and printer for the
Planning service, both to be funded from capital
receipts.
5) The scale of fees and charges from 1 April 2013
included at Appendix C.
6) That delegated authority for setting the fees and
charges for waste be given to Corporate
Director, Head of Environmental Health, Head
of Finance and relevant Cabinet Portfolio
Members.
Reasons for
Recommendations:
To agree a revised budget for the current financial year.
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on the write the report and which do not contain exempt information)
Budget monitoring reports for the current year;
Financial Strategy 2013/14 to 2015/16
Cabinet Member(s)
Ward(s) affected: All
Cllr Wyndham Northam
Contact Officer, telephone number and email: Karen Sly, 01263 516243;
Karen.sly@north-norfolk.gov.uk
1.
Introduction
1.1
This report presents the revised revenue and capital budgets for the financial
year 2012/13.
1.2
During the year financial monitoring reports have been presented to both
Cabinet and Overview and Scrutiny Committee which have identified
variances between the profiled budget and the actual expenditure and income
to date. The last monitoring report was presented to Cabinet on 12
November and Overview and Scrutiny on 21 November 2012, and covered
the period up to 30 September 2012 (period six).
1.3
This revised budget brings together the budget monitoring position plus any
further budget movements highlighted since the position was reported to
produce a revised budget position for the current financial year (2012/13).
2.
Revenue Account Budget 2012/13
2.1
Appendix A provides a high level summary of the overall financial position of
the Council for the current year. The revised budget is showing a small
underspend which will be transferred to reserves in the year. Where
movements have been made to budgets these are detailed within Appendix B
with the more significant variances highlighted within the report.
2.2
The various sub totals represent the standard reporting framework which is
presented in budget setting and reporting the financial outturn. The “Net Cost
of Services” represents the total costs of the services provided by the Council
including capital charges and the transactions relating to pensions as a result
of International Accounting Standards 19 (IAS 19). After making adjustments
to recognise Parish Precepts and other transactions, for example amounts to
be taken from and put into reserves in the year, the remaining total is the
amount to be covered by council tax and government grant as per the original
budget set in February 2012.
2.3
The following tables (tables 1 and 2) summarises the revised budget and the
variances at the net cost of service level, analysed across the major
expenditure/income headings. The detail within table 3 provides a
commentary on the more significant variances compared to the original
budget.
Table 1
Net cost of services
Updated
Revised
Budget
Budget 2012/13
2012/13
£
£
15,888,406
19,442,715
Variance
£
3,554,309
Non service expenditure/ income
(3,585,798)
(7,141,505)
(3,555,707)
Net budget requirement
Amount to be met from
Government Grant and Local
Taxpayers
(Surplus)/ Deficit
12,302,608
12,301,210
(1,398)
(12,302,608)
(12,302,608)
0
0
(1,398)
(1,398)
Table 2 - Subjective Analysis
Updated
Budget £
Revised
Budget £
Employees/Support Services
Premises
Transport
Supplies & Services
Transfer Payments
Income (External)
Total Direct Costs and Income
Capital Charges
IAS19 Notional Charges
REFFCUS
Total Notional Charges
Total Net Costs
9,486,260
2,662,298
342,578
9,993,782
34,547,835
(45,254,659)
11,778,094
1,814,493
(256,842)
2,552,661
4,110,312
15,888,406
10,285,761
2,692,109
317,603
10,695,185
34,547,835
(45,522,184)
13,016,309
1,799,778
(282,941)
4,909,569
6,426,406
19,442,715
Variance £
799,501
29,811
(24,975)
701,402
0
(267,525)
1,238,215
(14,715)
(26,099)
2,356,908
2,316,094
3,554,309
2.4
The variance on employee costs is largely due to a number of one-offs in the
year including the implications of the pay and grading review (see also 2.6)
and the impact of restructuring where the costs have been funded from a
transfer from earmarked reserves. The significant movement on supplies and
services is due to the budget being updated to accurately reflect where
expenditure is being funded from earmarked reserves for example in relation
to the big society fund, benefits partnership and Pathfinder ongoing projects.
Other variances include where the budgets have been updated for
expenditure being funded from additional grant income. The revenue
expenditure funded from capital under statute (REFFCUS) variance reflects
the re-profiling of the capital programme for the year.
2.5
The commentary within the following table provides details of the more
significant variations between the current budget and the revised position for
Variance
%
8.4
1.1
(7.3)
7.0
0.0
0.6
10.5
(0.8)
10.2
92.3
56
22.4
direct costs and income, detailed analysis is provided within Appendix B
covering the main service areas of the Council. Where applicable the revised
budget takes account of costs that are chargeable to the service but are
funded from a reserve in the year. Details of these are also provided within
the following commentary.
2.6
The base budget for 2012/13 included the estimated financial implications
from the management restructure and pay and grading review. At the time of
setting the budget in February 2012 these two projects were in progress and
the details of the implications at the individual services was not known and
therefore could not be allocated to services but were included at a corporate
level of reporting. In addition, it was assumed that the pay and grading review
would be implemented from April 2012 based on the pay model included
within the original consultation document. Subsequent to setting the budget
for 2012/13 Full Council in April 2012 approved a revised pay model for
implementation in October 2012. An earmarked reserve was established to
fund one-off costs associated with the review, i.e. the implications of back
pay. Where these costs are now included within the budget for 2012/13 a
compensating entry will be made from the earmarked reserve to negate the
one-off impact in the current year. The amount that has been taken from the
reserve in the year is £394,911.
The revised budget for 2012/13 has now been updated to reflect the work on
these two projects to date and the implications included within the service
budgets where applicable and therefore variances are now explained in the
following sections of the report.
Table 3 – Service Variances 2012/13 Revised Budget
Assets and Leisure
Car Parking – The income and expenditure budgets for car parking have been
reviewed and updated to reflect the latest forecasts of all car parking income.
There are a number of budget movements compared to the base budget, the
most significant are:
• Additional income for the year compared to the level originally forecast:
• Pay and display fee income (£94,472) as a result of the new pricing
structure implemented in 2012/13
• Penalty charge notices (PCN) (£52,005).
• Additional contract management costs of £49,320. This includes
£12,746 relating to the previous financial year and £36,574 for the
current financial year of which £20,803 is due to the impact of the
increase in PCN income.
• £20,000 increase in repairs and maintenance for ticket machines.
Administration Buildings – Reduction and refund of NNDR costs totalling
£51,548 for the year. This relates to the revaluation of the Cromer and
Fakenham offices following the outcome of an appeal covering three years of
NNDR charges. This has been partly offset by £11,977 for external fees that
were incurred to carry out the work for the revaluation. An ongoing saving from
NNDR has been factored into the forward financial projections. One-off repairs
and maintenance costs of £8,000 for the disaster recovery room at Fakenham
Connect have been incurred; this is due to the pending disposal of the annexe
Variance –
Growth/
(Saving)
£
(72,160)
(26,596)
Table 3 – Service Variances 2012/13 Revised Budget
Variance –
Growth/
(Saving)
£
building and also reduces the proximity risk of the disaster recovery room being
so close to the main office at Cromer.
Property Services – The budget variance largely reflects the net movement in
relation to employee costs as a result of a vacant post for part of the year and
the implications of the new management structure.
(17,197)
Sports Centres – There are a number of variances now reported within the
expenditure and income budgets. The main variances are:
• Income is lower than anticipated by £13,000, mainly due to increased
participation at Stalham Sports Hall not coming into fruition as originally
anticipated, also less outreach work is being provided due to a vacant
post, although this has been offset by a saving on employee costs in
the year.
• £6,500 professional fees relating to the North Walsham Sports Centre
business case which are to be funded from the sports hall earmarked
reserve.
• Additional employee budgets totalling £18,888 which includes a saving
of £11,158 due to a vacant post and the implications of the pay and
grading review.
41,466
Leisure Complexes – Inflationary increase on the contract management fee of
£18,752 and roof repairs on the Splash facility £6,300.
25,052
Investment Properties - An income provision for service charges had been
allowed for within the accounts for the past two years; these are no longer
recoverable and therefore results in an unfavourable variance of £15,500 in the
current year. Essential lift maintenance has been required at the Rocket House
in the year resulting in an additional budget requirement of £8,000. Further
details on the Rocket House are provided within section 6.3.5 to the report.
18,937
Community and Economic Development
General Economic Development – This budget heading has now been
updated to reflect the Learning for Everyone project and also projects
previously included within the Pathfinder scheme. These are either funded from
grant or from the respective earmarked reserves.
123,592
Coast Protection – Additional external consultants to be employed for the
year to carry out work in relation to revenue maintenance and associated work.
This is funded from a virement from the Coastal Management service.
15,000
Pathfinder – Following the carry forward of the underspend at the end of the
2011/12 financial year the budgets have been updated to reflected the ongoing
pathfinder projects and integrated coastal management costs. These are fully
funded from the earmarked reserve.
95,124
Regeneration Management – The variance is largely due to employee costs
as a result of the management restructure and pay and grading review.
40,434
Local Land Charges – The budget movement reflects the additional income
16,743
Table 3 – Service Variances 2012/13 Revised Budget
Variance –
Growth/
(Saving)
£
that was included as part of the 2012/13 budget process which is not now
anticipated, the impact of this is reduced income of £12,000 in the current year.
In addition the revised charging structure is still to be agreed for street naming
and numbering.
Environmental Strategy – The budget movement reflects a post that has
become vacant in the year for which the remaining budget will not be utilised.
(12,565)
Community and Localism – This service now includes the projects and
grants funded as part of the Big Society/Localism agenda. The costs are
largely being funded from the second homes funding that is returned to NNDC
from NCC, and the former Local Strategic Partnership earmarked reserve.
173,717
Coastal Management – Of the variance £27,211 relates to a current vacant
post, £15,000 has been vired to coast protection consultancy expenditure and
the remainder of the variance largely reflects employee costs as a result of the
pay and grading review.
(26,624)
Customer Services
IT Support Services – The budget variance includes a saving of £27,000 from
licences following from the Civica system changes. The revised budget now
includes additional employee costs of £44,413 as a result of the pay and
grading review.
Publicity – The full year saving reflects the net position following the
introduction of advertising in Outlook. Advertising income of £21,060 has now
been included in the revised budget along with costs of £6,750.
Customer Services – The overall variance reflects a net position on employee
costs of a vacant post and the implementation costs of the pay and grading
review.
Development Management
Development Management – The budget movement variance includes
increased staff recharges from other planning areas of £22,332, a
compensation payment awarded following an ombudsman enquiry of £8,500,
employee costs of £59,486 of which £14,696 relates to temporary
appointments and £39,407 relates to one-off pay and grading costs both
funded from earmarked reserves. The Department for Communities and Local
Government announced on 14 November a planning fee increase would come
into force on 22 November 2012 of 15%. The original budget already included
£50k for a fee increase although this did not come into force as originally
planned. Despite this a large number of major applications has meant that a
predicted increase of £25,000 has been included.
Landscape – Employee costs as a result of the pay and grading
implementation of £22,165 are now reflected in the revised budget. There is
also a saving shown within employee costs due to increased staff time now
charged to development management. The revised budget includes £8,000
biodiversity expenditure to be funded from the planning earmarked reserve in
the year.
16,950
(14,310)
24,873
76,635
18,267
Table 3 – Service Variances 2012/13 Revised Budget
Environmental Health
Licensing – The main reason for the variance is a reduction in income of
£20,000 from general licensing income due to closed premises. This has been
partly offset by the implications from the pay and grading review.
Variance –
Growth/
(Saving)
£
14,058
Environmental Protection – The revised budget reflects one off costs of
£26,000 in relation to Briggate Mill to be funded from reserves pending
recovery of costs once land ownership has been identified. There are also
savings totalling £9,119 anticipated for the year from a number of
miscellaneous demand led budgets.
16,879
Waste Collection and Disposal – There are a number of movements within
this service area which are detailed in Appendix B, but overall there is
expected to be an increase in direct costs of £31,083. This is due in the main to
additional costs for processing and disposal of materials, the haulage charge
paid for taking waste to a transfer station instead of direct to Landfill, and a
stepped cost to the contract for trade waste. These costs have been offset by a
variation to the contract for non-processing of street sweepings and reduced
disposal costs for trade waste following a redefinition from Defra. Income is
also expected to be down by £58,625 as refunds will be made to commercial
customers following the redefinition of waste by Defra and a loss of recycling
credit income due to non-processing of street sweepings – these losses are
partly offset by additional income from a recharge for Tipping Away.
89,708
Cleansing – The base budget included £15,000 for a cleansing survey, this is
no longer required and therefore is a saving in the year. Other budget
movements include £16,950 budget transferred to waste collection to reflect
the current staffing structure.
Financial Services
Benefits – The budget reflects the expenditure on the revenues and benefits
shared services project which is funded from the partnership earmarked
reserve established as part of the 2011/12 outturn process (£265,136). Of the
remaining variance £65,713 reflects the implementation of the pay and grading
review.
Non Distributed Costs – This service includes the pension payments in
relation to past employees. Inflation chargeable on these payments is normally
contained by reductions in the payments following the death of members. Of
the variances £9,634 is due to inflation which has not been offset by reduced
payments. The remainder reflects one-off actuarial strain costs as a result of inyear officer structural changes. This one-off cost is being funded by a transfer
from the Restructuring and Invest to Save Proposals reserve.
Central Costs – Pay and grading implications are now included at the service
level.
(35,641)
336,967
26,099
(51,866)
(40,413)
Corporate and Democratic Core – The variance reflects the saving now
anticipated to the audit fee following from the changes to the external auditing
arrangements from 2012/13 onwards.
Organisational Development
Human Resources and Payroll – Pay and grading implementation costs of
which £15,523 funded from an earmarked reserve.
Corporate
Corporate Leadership Team – Savings as a result of the management
restructuring.
22,718
(145,225)
3.
Non Service Expenditure
3.1
The original budget for 2012/13 anticipated that a net total of £269,900 would
be earned in interest. This assumed an average balance of £26m at a rate of
1.03%.
3.2
The latest budget monitoring position reported that the rate of interest
achieved for the year to date was 0.9% from an average balance available for
investment of £25.0m suggesting a reduction compared to the budgeted level.
However it is anticipated that the original budget will still be achievable
following the decision to invest in pooled property funds (October 2012).
4.
Future Budget Forecast and Fees and Charges
4.1
Members were provided with a comprehensive overview of the current
financial projections for the period 2013/14 to 2015/16 within the Financial
Strategy document for the same period as presented to Cabinet on 12
November 2012. The Local Government Finance Bill has recently become an
Act and covers the following:
• Local retention of non-domestic rates and Revenue Support Grant
• Council Tax Support Schemes
• Council Tax Discounts
Details on each of the above were outlined within the Financial Strategy
document.
4.2
At the time of writing this revised budget report there have been no further
announcements of dates for the provisional finance settlement announcement
for 2013/14. Detailed work on setting the budget for 2013/14 is underway and
will be presented in the new calendar year once the outcome of the finance
settlement is known.
4.3
Fees and charges proposals for 2013/14 have been circulated to managers
so that income budgets can be updated as part of the budget process.
Appendix C to this report provides the detail of the proposed charges for the
forward financial year from 1 April 2013. Agreement to these charges in
advance of the approval of the budget for the 2013/14 financial year enables
Officers to make preparations for the new financial year and also enable more
accurate projections for income to be factored into the budget for 2013/14.
Any further work in this area will be reported in the Budget reports in February
2013. Trade and garden waste fees are set annually, as in previous years it is
requested that delegated authority for setting these fees is given to the
Corporate Director, Head of Environmental Health, Head of Finance and the
relevant Cabinet Portfolio Members.
4.4
Where applicable the proposed increase to fees and charges is generally
around 2.5% for 2013/14 or to the nearest sensible figure after allowing for
rounding. The exceptions to this are for those fees and charges which are set
by central government, for example planning and premises licence fees and
also where a contractor manages a facility on behalf of the Council as the
Council has no discretion over these prices. A number of service fees and
charges are still to be reviewed alongside the ongoing budget process.
5.
Reserves
5.1
The Council holds a number of reserves including the general reserve and
earmarked reserves. The general reserve is held as a contingency to cushion
the impact of unexpected events or emergencies and uneven cashflows
between financial years. The level of this reserve is reviewed annually in the
light of the risks that the Council is facing as part of setting the annual budget.
A number of earmarked reserves are also held for specific purposes, these
are generally indicated by the name/description of the reserve. Again these
are reviewed regularly taking into account current commitments and also to
ensure that their level and original justification is still appropriate to the
respective service areas. Where applicable previous earmarked reserves will
be released to fund expenditure in the year or if no longer required will be
reallocated to the general reserve.
5.2
Appendix D shows the opening position on each of the reserves at 1 April
2012, the planned movement (i.e. the net of transfers in and out) of the
reserve in 2012/13 and the projected closing balance at 31 March 2013. The
planned movements of the reserves for future years will be discussed in detail
with Cabinet and Corporate Leadership Team over the coming months as part
of the detailed budget discussions for 2013/14 and future years.
5.3
The commentary within Table 3 earlier in the report identifies where service
expenditure is being funded from a reserve or where a contribution is being
made to the reserve.
5.4
The projected year-end (31 March 2013) balance on the general reserve is
£1,784,794 (after transferring the small surplus). Current budget projections
for future years assume a contribution from this reserve to support (as oneoffs) the base budget of £200,000 in 2013/14 and £100,000 in 2014/15 which
will leave an anticipated balance of £1,484,794 as at 31 March 2016 against a
current recommended minimum level of £950,000. As part of the budget
report for 2013/14 a detailed review of the adequacy of the general reserve
will be carried out, early indications suggest that it would be prudent to
increase the recommended balance to reflect the significant changes to the
Local Authority Financing regime that comes into force in April 2013.
6.
Capital Programme
6.1
An updated capital programme was included as part of the Period 6 budget
monitoring report, that was presented to Cabinet on 12 November 2012. A
copy of the revised capital programme for 2012/13 is included at Appendix E.
6.2
There were no adjustments to the 2012/13 Capital Programme, requested as
part of the budget monitoring report for Period 6, however, a number of
changes have since been made to the profiling of expenditure between
financial years against the following schemes, although it should be noted
that neither the scheme budgets nor the sources of funding have changed.
6.2.1
Wells Sackhouse Refurbishment and Maltings Wells – These schemes are
currently on hold pending the outcome of a larger grant funding submission.
The remaining budgets of £26,723 and £100,000 respectively, are requested
to be slipped into the new financial year (2013/14), so that they may be used
for match funding purposes.
6.2.2 Housing Renovation Grants - Anticipated expenditure against Housing
Renovation Grants is in the region of £60,000 for 2012/13. The remainder of
the budget for the year, of £800,000 has been requested for slippage into
2013/14 in order to support the delivery of the Housing Renewal Policy, which
is due to go to Cabinet in January 2013, with implementation due from April
2013 onwards.
6.2.3
Disabled Facilities Grants - The payment of grants for provision of disabled
facilities is continuing, but it is not anticipated that all monies will be spent
within the current financial year. As such, it is requested that £372,578 of the
budget for 2012/13 be slipped to 2013/14.
6.2.4
Housing Associations – A revised profile of expenditure has been identified
for the individual housing projects within this scheme. Based on the amended
timetable of key dates, it has been identified that a budget of £2,022,500 is
required for this financial year, with the balance of £1,077,678 being
requested for slippage to 2013/14.
6.2.5
Strategic Housing and Choice Based Lettings System – The purchase of
additional elements of the Choice Based Lettings System is anticipated
before the end of the current financial year. Expenditure of £15,000 is
expected, with the remaining £5,000 budget being requested for slippage into
the new financial year.
6.2.6
Cromer Pier and West Prom Refurbishment Project - The scheme has been
delayed and it is therefore requested that the remaining budget identified to
be spent in 2012/13 of £99,892, be slipped into the new financial year.
6.2.7
Refurbishment Works to the Seaside Shelters – Whilst this scheme is
progressing, with work on the Marrams shelters almost complete, some works
will be undertaken in 2013/14. A request has therefore been made for
£100,000 of the budget to be slipped into the New Year.
6.2.8
Playground Improvements – Various - The majority of works in relation to
Sadlers Wood have been completed, however, there is an anticipated
balance of £3,000 which has been requested for slippage to 2013/14.
6.2.9
North Lodge Park - This scheme is currently on hold pending the outcome of
a public consultation, and as such the remaining budget of £196,283 is
requested for slippage into 2013/14.
6.2.10 BPR EDM Project – This budget includes work in relation to the reception
refurbishment project. The timing of the works is anticipated to slip into the
new financial year and at this time it is requested that £126,986 is slipped to
the 2013/14 capital programme of works.
6.2.11 Waste Management and Environmental Health IT System - The scheme is
being progressed, but it is anticipated that only £5,100 of the available budget
will be spent in 2012/13. The balance of £11,394 is requested for slippage
into 2013/14.
6.2.12 Probass 3 (Planning System) – The scheme is nearing completion, however
there will be a requirement to undertake some data reloads, which are
unlikely to be undertaken until the new financial year. As such slippage of
£1,910 is requested into the new financial year, in order to undertake this
work.
6.2.13 Administrative Buildings – The programme of works under this scheme has
been identified, and works will commence on the replacement fire alarm and
emergency lighting for the Cromer office accommodation in 2012/13. The
anticipated expenditure for the year is £143,500, and the balance of the
budget £131,026 is requested for slippage into the new financial year.
6.3
Further to the profiling amendments identified above, three further
adjustments to the 2012/13 Capital Programme are now requested as part of
this revised budget report.
6.3.1
Personal Computer Replacement Fund - Following the upgrade of Civica
OPENRevenues relating to the Council Tax, Business Rates and Benefits
systems, it has been determined that all personal computers within the
Revenues and Benefits area require replacement as a matter of urgency. To
undertake these replacements the anticipated cost is £32,348, compared to
an existing budget of £25,307. Approval is therefore sought for an additional
budget provision of £7,041 in 2012/13, to be funded from capital receipts, to
facilitate the replacement of these machines.
6.3.2
Planning Scanning and Printing Equipment – In order to enable application
plans of up to A0 size to be scanned to the Council website and to be printed
off in colour in addition to black and the Planning department requires access
to the appropriate scanner and printer. The current equipment is now over 7
years old and is becoming unreliable with engineers being called out at
additional cost each time. It is therefore recommended that funding for a
replacement scanner and printer of £21,000 be included within the revised
budget to be funded from capital receipts.
6.3.3
North Norfolk Enterprise Innovation Centre – When approval was first given to
this scheme, it was identified as a feasibility study, which following changes to
the capital regulations can no longer be taken as capital expenditure. As a
result, it is requested that this scheme is taken out of the capital programme.
As the works were to be undertaken in the North Walsham area approval is
being sought to vire £17,000 of the remaining budget to the North Walsham
Regeneration scheme, to cover the additional expenditure anticipated to be
spent within the 2012/13 financial year.
6.3.4
North Walsham Regeneration Scheme – Works have already commenced on
the North Walsham Regeneration scheme, but it is anticipated that a further
£17,000 will be required to cover the final costs of the scheme, which includes
the Town Centre Traffic Management works as approved at Cabinet in
October 2012. A virement is therefore requested from the North Norfolk
Enterprise Innovation Centre as identified above in paragraph 6.3.3.
6.3.5
Rocket House - At the current time there is budget available of £37,916 in
relation to capital works at the Rocket House. The Asset Management Board
has identified a series of refurbishment works required to both the building
itself and the lift mechanism. In total the estimated value of the works is
£75,000, including £50,000 for the full renewal and upgrade of the lift which
has been subject to several major breakdowns over the last 6 months.
Cabinet are requested to approve that additional budget be made available of
£37,084 to enable these works to be undertaken to be funded from the
Council’s capital receipts. This increase would bring the total budget for the
Rocket House works up to £77,084.
7.
Conclusion
7.1
The budget for 2012/13 has been updated to take account of known
variances for both expenditure and income that have been highlighted
through the budget monitoring process as well as the detailed budget process
which is underway for the 2013/14 budget. The appendices to the report
highlight the variances at the service level and the more detailed variances
have been detailed within section 2 of the report. Where applicable the
budgeted reserves movements have been updated to match spend
accordingly, for example the one-off costs as a result of the implementation of
the pay and grading review. There is currently estimated to be a small underspend for the current year and this is recommended to be transferred to the
general reserve in the year. All budgets, both revenue and capital will
continue to be monitored over the remaining periods for the current financial
year.
7.2
The capital programme has been reviewed and updated to take account of
project slippage between financial years for example where schemes have
not progressed as originally anticipated.
7.3
The detailed budgets for 2013/14 along with the detailed financial projections
for the following years continue to be worked upon and will be reported to
Members in the new year along with the outcome of the Local Government
Provisional Finance Settlement for 2013/14.
8.
Financial Implications and Risks
8.1
The financial implications are outlined in the detail of the report.
8.2
There are a number of significant income streams for which the Council’s
influence over is limited as they are demand led, for example car park fees
and planning income. Whilst the revised budget has been informed by actuals
to date along with projections which do consider current and past trends there
is still a risk that income will not be achieved as budgeted. The overall budget
position will continue to be monitored for the remainder of the financial year to
ensure that the overall budget remains achievable.
9.
Sustainability – None as a direct consequence of the report.
10.
Equality and Diversity - None as a direct consequence of the report.
11.
Section 17 Crime and Disorder considerations - None as a direct
consequence of the report.