Cabinet
28 November 2010
Overview & Scrutiny Committee
14 December 2010
Agenda Item No______8_______
2011/12 REVISED BUDGET
Summary:
Conclusions:
The base budget for 2011/12 was approved by Full Council on 23
February 2011. The budget was then updated as part of the Final
Accounts process for 2010/11 to take account of roll forwards of
previously unspent budgets. This report presents for approval the
revised budget for 2011/12 for both capital and revenue.
The budget for 2011/12 has been revised to take account of variances
which have been highlighted as part of the ongoing budget monitoring
process. The appendices to the report provide details of the
movements for each service while the main body of the report
highlights the more significant movements compared to the current
budget for 2011/12. This report presents a balanced position for the
2011/12 revised budget while allowing for a contribution to be made to
the Organisational Development reserve to offset any reduced savings
in 2012/13 as a consequence of the revised approach in relation to the
implementation of the new pay model resulting from the Pay and
Grading Review.
Detailed work is still ongoing on the 2012/13 budget which will be
reported to Members in the new year.
Recommendations:
That Members agree and recommend to Full Council:
•
The revised revenue budget for 2011/12;
•
The revised transfers to and from reserves included at
Appendix C;
•
The transfer of the forecast surplus of £172,488 to the
Organisational Development reserve;
•
The revised capital programme and associated financing as
included at Appendix E;
•
The scale of fees and charges from 1 April 2012 included at
Appendix D;
•
Delegated authority for setting the fees and charges for waste
be given to the Strategic Director for Environment, Deputy
Cabinet
28 November 2010
Overview & Scrutiny Committee
14 December 2010
Chief Executive and relevant Portfolio Members.
Cabinet member(s):
Ward(s) affected:
All
All
Duncan Ellis, 01263 516330,
Duncan.Ellis@north-norfolk.gov.uk
Contact Officer, telephone number,
and e-mail:
1.
Introduction
1.1
This report presents the revised revenue and capital budgets for the financial year
2011/12.
1.2
During the year financial monitoring reports have been presented to both Cabinet and
Overview and Scrutiny Committee which have identified the variances between the
profiled budget and the actual expenditure and income.
1.3
The last monitoring report was presented to Cabinet on 31 October and Overview and
Scrutiny on 16 November and covered the period up to 30 September 2011 (period six).
1.4
This revised budget brings together the budget monitoring position plus any further
budget movements highlighted since that position was reported to provide a balanced
budget position for the current financial year (2011/12).
2.
Revenue Account Budget 2011/12
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 balanced and 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 present 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 Financial Reporting Standard 17 (FRS17).
After making adjustments to recognise Parish Precepts and other transactions, for
example amounts to be taken from 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 2011.
2.3
For revised estimate comparison purposes Members attention is drawn to the necessary
adjustments in revised Net Cost of Services regarding FRS 17 and capital charges.
These movements in service costs, which are necessary to comply with the Best Value
Accounting Code of Practice (BVACoP), are reversed in the Net Operating Expenditure
total and do not impact on the bottom line.
2.4
The detail in the remainder of this section identifies the major variances in the four
service areas with supporting data in the appendices that follow.
2.5
Table 1 below summarises the position as follows:
Cabinet
28 November 2010
Overview & Scrutiny Committee
14 December 2010
Variance
£
Table 1
Current
Budget
2011/12
£
Revised
Budget
2011/12
£
Net cost of services
16,924,397
18,898,804
1,974,407
Non service expenditure/ income
(2,535,573)
(4,682,468)
(2,146,895)
Net budget requirement
14,388,824
14,216,336
(172,488)
(14,388,824)
(14,388,824)
0
0
(172,488)
(172,488)
Amount to be met from Government Grant and
Local Taxpayers
(Surplus)/ Deficit
2.6
The figures for Net Cost of Services from Table 1 can be analysed across the standard
form required by BVACoP as follows:
Table 2
Current
Budget
2011/12
£
Revised
Budget
2011/12
£
10,293,434
10,351,429
57,995
Premises
2,520,064
2,564,697
44,633
Transport
391,591
372,859
(18,732)
9,731,431
10,816,178
1,084,747
19,698
19,698
0
32,824,013
34,547,835
1,723,822
(42,362,517)
(44,568,802)
(2,206,285)
13,417,714
14,103,894
686,180
Capital charges
1,480,838
1,926,791
445,953
Reffcus
2,277,122
3,137,379
860,257
FRS 17
(251,277)
(269,260)
(17,983)
3,506,683
4,794,910
1,288,227
16,924,397
18,898,804
1,974,407
Employees
Supplies & services
Third party payments
Transfer payments
Income
Total Direct Costs and Income
Variance
£
Notional Charges:
Total Notional Charges
Total Net Costs
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28 November 2010
Overview & Scrutiny Committee
14 December 2010
2.7
The variance under transfer payments reflects the additional benefits costs which are
based on the mid year subsidy estimate as submitted to the Department for Work and
Pensions (DWP). This is offset by subsidy receivable shown within the income line in
Table 1. The remainder of the variance in relation to income reflects additional income in
relation to the Materials Recycling Facility (MRF) profit share (£192,000), income in
relation to the Referendum of (£195,000) which has mainly been offset by costs,
(£63,000) in relation to various sports and leisure grants which are again offset by costs
and some additional Benefits income. The variance in supplies and services relates
mainly to funding from reserves in relation to the Pathfinder project (£575,000) as it was
originally anticipated that this was going to have been completed by the end of 2010/11,
additionally there are transfers in from various other subjective headings of
approximately £365,000 but within the overall all budget transfers will net to zero.
2.8
The revised budget is showing an estimated underspend of £172,488. A report to
Council in October 2011 recommended a revised process be followed for the
implementation of the revised pay model following the pay and grading review. It is
recommended that the surplus forecast for 2011/12 is allocated to the Organisational
Development reserve to offset any reduced savings in 2012/13 as a consequence of the
revised approach, and this recommendation is covered within the 2011/12 revised
budget report.
2.9
The commentary within the following tables provides details of the more significant
variations between the current budget and the revised position for 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.
Table 3 - Community
Development Management – The variance is due partly as a result of one off
growth to cover compensation payments of £11,278 made as a result of
planning appeals. This is a cost that is not budgeted for and is beyond the
control of the budget manager. There is also £12,314 which relates to a
temporary student post which is to be funded from income. An additional
£50,000 of income was added for 2011/12 in anticipation of the introduction of a
new fee setting regime but this is now unlikely to happen in the current financial
year and income is expected to be down by £20,000.
General Economic Development – The £69,000 variance is due to budget roll
forwards from 2010/11 which are due to be spent in 2011/12.
Strategic Housing – The variance relates to savings on homelessness
accommodation (£18,700) and rolled forward provisions for old HRA electricity
accounts which are no longer required (£22,861). There are additional costs of
£10,000 for B&B accommodation but this has been offset by recoverable income
of (£17,000), and expenditure of £3,999 has been matched with a one off grant
(£3,999) from the Rough Sleeper fund.
Housing Service Management – this variance relates to the vacant
Development officer post. This post has been offered up as part of the 2012/13
savings exercise and will therefore not be filled in the current financial year.
Sub Total Community
Table 4 - Environment
Parks & Open Spaces – this variance relates mainly to costs in relation to oneoff remedial tree works of £8,380, repairs to irrigation equipment of £4,000 and
Variance
£
43,349
69,478
(48,561)
(25,828)
38,438
Variance
£
23,282
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28 November 2010
Overview & Scrutiny Committee
14 December 2010
savings in relation to playground repairs (£5,000). There is also a reduction in
income of £14,997 for verge cutting which was formerly recharged to the County.
Sports Centres – The overspend on direct costs relates to £8,890 in relation to
hall hire costs at Cromer due to repair of fire damage and the floor
refurbishment. Costs of £5,200 for the purchase of new equipment are to be
funded from the Sports Hall Equipment reserve, and there are savings of
(£4,689) connected to salaries and oncosts as a result of new working practices.
Income is forecast to be down by £28,216 as it has not been possible to meet
the 5% participation increases which have impacted on projected income due to
the continuing difficult financial climate. Outreach work with schools and the
income generated from this has also reduced by £2,500 due to the pressure on
school budgets. The installation of the new Multi Use Games Area was delayed
resulting in a £2,500 income reduction and holiday activities are down on last
year again. The membership scheme has also not sold as many as estimated.
Foreshore (Water Safety, Lifeguards etc) – this variance reflects the fact that
the maintenance budget has now been transferred to the Foreshore service area
within the Resources portfolio. Costs have also been lower (£2,500) in relation to
maintenance and repair costs for memorial seats.
Woodlands Management – the variance is mainly due to salary savings of
(£17,909) due to a vacant post and additional grant money from the Forestry
Commission of (£5,500).
Public Conveniences – this variance relates to additional repairs and
maintenance costs of £18,000 and a one-off discretionary contribution of £2,000
to the National Trust relating to the transfer of Morston Quay PC’s.
Waste Collection and Disposal – There are a number of movements within this
service area which are detailed within Appendix B but overall there is expected
to be a saving in relation to direct costs of (£25,647). Income is also expected to
be up, with the most significant variance being in relation to the profit share from
the MRF with NEWS. The period 6 budget monitoring report forecast additional
income from the profit share arrangements of (£92,000). However NEWS have
recently entered into fixed price contracts for high value materials with buyers to
last the remaining period of the contract. This protects the consortium from
potential market reductions in the value of materials, and the additional income
for 2011/12 is now expected to be (£192,000). This has been partly offset by a
reduction in recycling credits of £42,446 received from the County, due mainly to
lower tonnages of recycled materials and the loss of some large prescribed
waste customers which have further reduced income by £49,083. Due to some
other minor variances the income is projected to be (£122,139) higher than
original budget forecasts.
Cleansing – the overspend relates to additional salary costs of £11,986 in
relation to the restructure of the service, additional costs of £15,000 in relation to
the National Indicator 195 (Cleanliness Performance Indicator) audit payment to
Kier, which is offset by savings of £10,000 from the cleansing contract and
maintenance to litter bins.
Environmental Strategy – The variance is due mainly to costs relating to the
Carbon Reduction Plan of £20,000 which are due to be met from a transfer from
reserves.
Civil Contingencies – The variance on this budget relates to the post for the
Civil Contingency Manager which has been vacant for the first 6 months of this
year, a new post holder has however now been appointed.
Sub Total Environment
Table 5 - Information
42,733
(36,500)
(22,820)
18,949
(147,786)
16,986
18,302
(20,190)
(107,044)
Variance
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28 November 2010
Overview & Scrutiny Committee
14 December 2010
Registration Services –The variance is made up of additional salary costs of
£6,778 resulting from the new staffing structure, £8,000 in relation to the refresh
of postal votes and £162,865 additional costs resulting from the Referendum.
This has however been offset through an additional (£195,246) grant payment
associated with the Referendum costs, resulting in the net underspend.
Members Services – the variance relates to savings on salaries (£5,829) and
Members travel, subsistence and allowances (£20,000) along with other minor
variances.
Legal Services – There is a saving in relation to salaries of (£4,434) but there
have been additional costs of £8,000 in relation to legal case updates as a result
of the number of recent legislative changes. Service fee income is expected to
be (£29,000) higher than the base budget, however £15,000 of this is planned to
be invested in a new electronic case management system which will significantly
improve efficiency so the net saving overall is forecast to be (£12,815).
Graphical Info System – the underspend of (£8,000) is due to savings in
relation to Map Editor licences which are no longer required.
Sub Total – Information
Table 6 - Resources
Car Parking – the underspend is made up of a number of variances which
include (£13,410) which relates to reduced rental expenditure following
surrender of the lease at the Swan car park in Horning. £8,317 is connected to
the car parks management contract following increased costs associated with
increased levels of excess parking, offset by additional excess parking income of
(£10,122). There is also further additional contract income of (£1,995)
anticipated and additional car parking land rentals of (£4,085).
Benefits – There are a number of variances that have resulted in this slight
overspend.
Non Distributed Costs – this variance relates to pension costs with actuarial
strain costs of £12,347, which are to be funded from an earmarked reserve,
along with £5,565 in relation to inflation on ‘Added Years’ costs.
Personnel and Payroll Support – the majority of this variance relates additional
salary costs of £5,681 and £10,000 for professional fees connected to external
employment advice which is to be funded from an earmarked reserve.
Administration Buildings Service – there are a number of variances within this
service area including £8,125 for an office condition survey which is to be funded
from the Asset Management Reserve. There is a net increase in relation to
NNDR of £2,936, £12,425 contract cleaning costs for North Walsham and
Fakenham following their removal from the Kier contract and £4,960 additional
salary costs following backdated regradings. This is partly offset by additional
rental income from the North Norfolk Health Teams occupation of the Cromer
office (£5,208) and (£2,373) in relation to recoverable NNDR and service
charges for North Walsham.
Property Services – the variance in relation to this service area relates mainly
to staff turnover savings of £3,544 not achieved, additional staffing costs of
£22,120 to be funded from the Asset Management Reserve and £9,500 of
repairs to the North Walsham offices financed by a roll forward of the Leadership
of Place grant.
Insurance and Risk Management – this variance relates to savings in salaries
and oncosts of (£5,158) and reorganisation costs of £36,567 to be funded by an
earmarked reserve.
Performance Management – The majority of this variance relates to the
£
(17,537)
(26,500)
(12,815)
(8,000)
(64,852)
Variance
£
(21,502)
12,095
17,983
17,341
18,097
37,327
31,041
45,916
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Overview & Scrutiny Committee
14 December 2010
transfer of budgets totaling £49,645 to this service area as a result of
restructuring.
Foreshore – the variance in this area relates to a staff vacancy (£5,149) and a
budget transfer of £34,000 from Foreshore (Community) in relation to handrails.
Coast Protection – of this variance £8,500 is for additional rock at Happisburgh
which is matched by a contribution from Coastal Concern and £41,426 is a roll
forward from 2010/11 relating to underspends on sea defence works.
Pathfinder – This variance relates to the roll forward of unspent grant monies
from 2010/11.
Community Safety – The majority of this variance relates to reorganisation
costs to be funded from an earmarked reserve.
Sub Total Resources
28,776
41,426
575,153
25,813
£829,466
3.
Non service expenditure
3.1
The Original Budget for investment income in 2011/12 assumed an average rate of
interest of 2.42% on an average balance available for investment of £22.8 million, giving
a total interest figure of £550,000.
3.2
The Revised Budget anticipates that although the balance available for investment will
be higher than in the original estimate, the rate of interest will be much lower. The credit
rating agencies have recently downgraded a number of institutions and many are now
below the Council’s minimum level for investment. The maximum period for investments
has also been reduced as a prudent response to the difficulties and tensions in the
financial markets.
3.3
A consequence of these changes is that the rate of interest which can be achieved will
be lower than the original estimate. A total of £462,000 is anticipated to be earned in
2011/12 from an average balance of £26.2m at an average rate of 1.77%. This is a
reduction of £88,000 from the original estimate which is slightly more that the £81,000
forecast as part of the period 6 budget monitoring report that was presented to Members
on 31 October 2011.
4.
Future Budget Forecast and Fees and Charges 2011-12
4.1
The Comprehensive Spending Review (CSR) announcement was made on 20 October
2010, the final announcement was subsequently made on 31 January 2011 which gave
the final settlement figures for 2011/12 and provisional figures for 2012/13. The latter
was subsequently updated on 7 February.
4.2
The recent update of the Corporate Plan which was presented to Cabinet in October
2011 was accompanied by an appendix entitled ‘Financial Plan Update 2011/12 –
2014/15, Strategic Context and Organisational Workstreams’. This paper identified a
funding gap of £0.9 million for 2012/13 and just under £1.1m for 2013/14. There is a
report elsewhere on the agenda that provides an update on the progression of two of the
Council’s workstreams and identifies a number of savings and additional income
streams that will help to address the funding deficit in future years.
4.3
As reported within the aforementioned Financial Plan Update paper, the following
workstreams are in progress:
•
•
•
•
•
Workstream 1: Management Structures
Workstream 2: Prioritisation exercise
Workstream 3: Shared Services/Outsourcing
Workstream 4: Asset rationalisation
Workstream 5: Partnership Working
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Overview & Scrutiny Committee
14 December 2010
4.4
Further details on the overall budgeting position will be available in February although as
mentioned above there is a report elsewhere on the agenda that covers the proposed
savings to be included within the 2012/13 base budget which form part of the
Prioritisation exercise along with an update in relation to the Management Structures
workstream.
4.5
Fees and charges for 2012/13 have been prepared and Appendix D to this report
provides the detail of the proposed charges for the forward financial year from 1 April
2012. Agreement to these charges now will enable Officers to make preparations for the
new financial year. Any further work in this area will be reported in the Budget Reports in
February 2012. 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 Strategic Director
for Environment, the Deputy Chief Executive and the relevant Portfolio Members
4.6
Where applicable the proposed increase to fees and charges is generally between 2.5%
and 3.0% for 2012/13 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.
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.
5.2
Appendix C shows the opening position on each of the reserves at 1 April 2011, the
proposed use (movement) of the reserve in 2011/12 and the projected closing balance
at 31 March 2012. For information the current planned movements for future years are
also included. All future reserve movements are being considered as part of the overall
budget setting process for 2012/13.
5.3
The commentary within Tables 3 to 6 for the service movements includes where either
spend in the year is being funded from a reserve or where a contribution is being made
to the reserve.
5.4
The projected year end balance on the general reserve is £1,828,947. Current budget
projections for future years assume a contribution from this reserve to help support the
base budget of £200,000 in 2012/13, £200,000 in 2013/14 and a further £100,000 in
2014/15 which will leave an anticipated balance of £1,329,000 as at 31 March 2015
against a recommended minimum level of £950,000.
6.
Capital programme
Non Housing
6.1
An updated capital programme was included as part of the Period 6 budget monitoring
report, that was presented to Cabinet on 31st October 2011. A copy of the revised
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Overview & Scrutiny Committee
14 December 2010
capital programme for 2011/12 for general fund housing, non housing and coast
protection is included at Appendix E.
6.2
There were five adjustments to the 2011/12 Capital Programme requested as part of the
budget monitoring report for period 6. These amendments have now been incorporated
into the 2011/12 updated capital budget and are included within the capital appendix.
6.3
The first related to a request to increase the capital scheme budget for the provision of
electricity at Holt Country Park. The increase identified was for the sum of £8,522, which
was to be funded from a revenue contribution to capital outlay (RCCO).
6.4
The second adjustment related to a specific Carbon Reduction Scheme which was for
the introduction of an evaporative cooling system to the ICT Server room. The total
value of this scheme was £14,100, which was also to be funded from a revenue
contribution to capital outlay (RCCO) from the Carbon Management earmarked reserve.
6.5
In addition further alterations, as identified in the period 6 budget monitoring report, have
also been reflected in the 2011/12 updated capital budget. These adjustments represent
changes to the structure of the programme rather than amendments to the budget totals
and include the following;
• The budgets for the Benefits Software and the procurement of the new Civica System
have been amalgamated to reflect a total budget figure of £306,156.
• All budgets relating to the programme of planned works to the Cromer office buildings
have been amalgamated under the single heading ‘Administrative Buildings’, with the
total budget value amounting to £275,000.
• All projects associated with the ‘Leadership of Place’ schemes being undertaken in
North Walsham have been included under a separate sub-section of the report.
6.6
Within the appendix a number of further changes have been made to the profiling of
expenditure of the following schemes, although it should be noted that neither the
scheme budgets nor the sources of funding have changed:
• North Norfolk Enterprise Innovation Centre – Due to the general economic downturn,
this project has been delayed, and a request is therefore made to slip the budget of
£39,705 into the 2012/13 financial year.
• Fakenham Factory Extension – Following delays caused by the identification of
drainage issues, and the requirement to re-price tenders, this scheme has been
delayed. It is therefore requested that £298,586 of this budget be slipped into next
year.
• Sheringham Beach Handrails – The works that are due to be undertaken in 2011/12
have been completed, so it is requested that the balance of £3,126 be slipped into
2012/13.
• Cromer Pier Structural Works Phase 2 – It is anticipated that the contractors for this
scheme will be appointed in February 2012, with approximately £100,000 being spent
in the current financial year. The remaining budget of £1,247,889 is requested for
slippage into 2012/13.
• Cromer Pier and West Prom Refurbishment – As this scheme is yet to commence,
the original allocation of £45,000 in 2011/12 is requested to be slipped to the new
year.
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• Administrative Buildings – This scheme is currently on hold pending the determination
of the programme of works to be undertaken following the condition survey recently
undertaken on the Cromer office buildings. The full budget of £275,000 is requested
for slippage into 2012/13.
• Fakenham Connect – This scheme is also currently on hold, and the remaining
budget of £6,218 is to be slipped into the new year.
• Asbestos Works – Further asbestos removal works have been identified in relation to
the North Walsham Town Council offices, but these works are unlikely to occur in this
financial year. It is therefore requested that the budget of £12,696 be transferred to
the new financial year.
• Rocket House – This scheme is currently on hold pending the outcome of some
hydrology survey works. The budget of £39,736 is requested to be slipped into
2012/13.
• Wells Sackhouse Refurbishment and Maltings Wells – These schemes are currently
on hold pending the outcome of a larger grant funding submission. The budgets of
£26,714 and £100,000 respectively, are requested to be slipped into the new financial
year, so that they may be used for match funding purposes.
• Carbon Reduction Scheme – This scheme is currently on hold pending the outcome
of building surveys at the Cromer Offices and Council Leisure Centres. As no specific
schemes have been identified for 2011/12 it is requested that the remaining budget of
£49,401 be taken into 2012/13.
Housing
6.7
The general fund Housing budgets have been reviewed as part of the revised budget
process, and several changes have been incorporated into the Housing element of
Appendix E.
6.8
Housing Renovation Grants – Private Sector Renewal Grants – A report was taken to
Cabinet on the 31st October 2011, which included a recommendation to use £200,000 of
the Private Sector Renewals Grant budget for 2011/12 to pilot an approach / develop the
Council’s understanding of exercising Compulsory Purchase powers to acquire and sell
on long-term empty properties in the district. Approval was given, and as a result
£200,000 of the updated budget 2011/12 has been vired from this budget to create a
new budget entitled ‘Empty Homes’. Of the remaining 2011/12 updated budget, it has
been identified that only around £50,000 will be spent in the current financial year, and
as such the remaining £319,246 is requested to be slipped into 2012/13.
6.9
Housing Renovation Grants – Disabled Facilities Grants - A request has been received
to vire £30,000 of the Disabled Facilities Grants 2011/12 updated budget, to the Housing
Associations enabling budget. In addition to this it is anticipated that expenditure in
2011/12 on Disabled Facilities Grants will amount to £1,000,000. As such, the balance
remaining of £264,105 is requested for slippage into 2012/13.
6.10
Housing Associations – The updated budget for Housing Associations was £3,311,477,
with the addition of the virement outlined above for £30,000 this would have given a
revised budget of £3,341,477. However, the anticipated spend in 2011/12 is forecast at
£2,856,481, and therefore the balance of £484,996 has been slipped to 2012/13.
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28 November 2010
Overview & Scrutiny Committee
14 December 2010
6.11
Strategic Housing and Choice Based Lettings Systems - The 2011/12 updated budget of
£73,050 is in excess of the actual budget requirement for the new ‘My Gateway’
software. It is anticipated that in total £20,000 will be required for the purchase and
implementation of the software and as a result this budget has been reduced by £53,050
to reflect this change.
6.12
Empty Homes – As identified above, a report was taken to Cabinet on the 31st October,
where approval was given for a virement from the Private Sector Renewals Grant budget
in 2011/12 in order to facilitate this project. A budget has therefore been established of
£200,000, within the revised Housing Capital Programme, to reflect this change.
Coast Protection
6.13
The revised capital programme also incorporates one change to the Coast Protection
programme, in terms of the profiling of expenditure of the Cromer Coast Protection
Scheme 982. Although there is a 2011/12 updated budget of £1,173,763, it is likely that
only £25,000 will be spent in the current financial year. It is requested therefore that the
remaining £1,148,763 be slipped into 2012/13.
Capital Summary
6.14
After taking account of the above movements in relation to the non housing, housing and
coast protection capital budgets, the total revised General Fund capital budget for the
current year is now £6,386,628 (£4,126,481 for housing schemes and £2,260,147 for
non housing), whilst the revised budget for the Coast Protection programme is
£1,654,567.
7.
Implications to the Council
7.1
This report presents a balanced revised position for the 2011/12 budget after allowing for
a transfer to the Organisational Development reserve of £172,488. The revised budget
takes account of the previous monitoring statements which have highlighted certain
financial pressures throughout the year that have been offset and compensated by a
number of underspends and additional income, for example from the MRF profit share
which is now expected to be £192,000 higher than the base budget for 2011/12.
7.2
The balance on the general reserve is forecast to be above the minimum recommended
level at 31 March 2012 and as previously mentioned within the report all reserves and
current commitments will be considered over the coming months as part of the ongoing
budget process for 2012/13.
8.
Risks to the Council
8.1
A number of income streams have demonstrated some fluctuations in the year, for
example planning fees and income from sports centres, but actions have been put in
place to try and address this as far as possible. The budget now presented reflects both
the actuals to date along with informed projections for the remainder of the financial
year.
8.2
Whilst this report is seeking approval of the 2011/12 revised budget, there is report
elsewhere on this agenda that covers the proposed savings to be included within the
2012/13 base budget which form part of the Prioritisation exercise along with an update
in relation to the Management Structures workstream, both of which will help to address
the budget gap projected for future years. Where restructurings are planned as part of
the ongoing budget and efficiency savings processes, detailed business cases will be
Cabinet
28 November 2010
Overview & Scrutiny Committee
14 December 2010
produced and, subject to approval and where applicable, these costs will be met from
the Restructuring Proposals reserve.
9.
Recommendations
9.1
That Members agree and recommend to Full Council:
•
The revised revenue budget for 2011/12;
•
The revised transfers to and from reserves included at Appendix C;
•
The transfer of the forecast surplus of £172,488 to the Organisational
Development reserve;
•
The revised capital programme and associated financing as included at Appendix
E;
•
The scale of fees and charges from 1 April 2012 included at Appendix D;
•
Delegated authority for setting the fees and charges for waste be given to the
Strategic Director for Environment, Deputy Chief Executive and relevant Portfolio
Members.