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Appendix 8 - Epsom _ Ewell Borough Council

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					COUNCIL                                                                                                                                                                                   ITEM 08
15 FEBRUARY 2011                                                                                                                                                                      APPENDIX 08

                              BALANCE   BALANCE
 RESERVES/PROVISIONS           MARCH     MARCH                       POLICY                                   Commitments                                      Use in 2011/12
                                2009      2010
                                £000      £000
CAPITAL RESERVES
                                                                                                                                          Available to fund schemes prioritised in the Capital
                                                  Reserve used to fund capital programme
                                                                                                                                          Programme Review where external funding not
                                                  where external funding not available.
                                                                                                                                          available. Use of reserves limited to Priority 1 schemes
                                                  Interest earned on invested reserve used to
                                                                                                                                          in the capital strategy whilst reserve below target level.
CAPITAL RECEIPTS -                                help finance the General Fund Revenue            See capital funding in the capital
                               6,713     5,575                                                                                            Retained reserves invested with fund manager and
general                                           Account provision of services. Target in         strategy statement (Appendix 11).
                                                                                                                                          investment returns used to finance the cost of service
                                                  financial plan was to maintain a minimum
                                                                                                                                          delivery. £584,000 of reserve allocated to core capital
                                                  reserve of £7 million, subject to annual
                                                                                                                                          programme and £330,000 for spend to save schemes
                                                  review.
                                                                                                                                          in 2011/12.
                                                                                                   £524,000 of transferred funds ring-    Available for Horton Chapel scheme start either based
CAPITAL RECEIPTS -                                Transferred sums earmarked to fund
                                613       613                                                      fenced for Horton Chapel               on Community Development Trust or alternative
hospital cluster                                  development of hospital cluster site
                                                                                                   community works                        approach to community provision
                                                  Planning Gain Receipts set aside for
SECTION 106 - unapplied                                                                            See capital funding in the capital     £1,130,000 funding allocated to schemes in the
                               1,194     1,997    schemes fulfilling terms of agreement with
capital reserves                                                                                   strategy statement (Appendix 11).      2011/12 recommended capital programme
                                                  developers
     Total Capital Reserves    8,520     8,185

REVENUE STRATEGIC
RESERVES
                                                  To fund Community Safety activities agreed
COMMUNITY SAFETY                                                                                   Reserved for prioritised expenditure
                                86        96      with Surrey County Council and Surrey Police
PARTNERSHIP                                                                                        on partnership schemes
                                                  Authority
                                                  Principal sum invested so that interest earned   Interest annually credited to Leisure
RECREATION COMMUTED                                                                                                                      Interest of £97,000 will be credited to appropriate
                               1,965     1,965    can be used to fund on-going recreation          Committee to fund grounds
SUMS                                                                                                                                     leisure cost centres
                                                  grounds maintenance liabilities                  maintenance costs
                                                  Carried forward provisions for Local       Balance on Local Partnership Fund
PARTNERSHIP FUNDS               26        31      Partnership Fund, Young People Partnership £3k and Young People Partnership
                                                  Fund, Yells Fund                           Fund £25k, Yells Fund £3k
HISTORIC BUILDINGS              25        26      Earmarked to fund historic building repairs      As prioritised
                                                                                                   Interest ring fenced (contingency as
HOSPITAL CLUSTER                                  Interest generated from Hospital Cluster
                                205       213                                                      potentially repayable on Horton
INTEREST                                          receipts.
                                                                                                   Chapel if scheme not delivered)

                              BALANCE   BALANCE
 RESERVES/PROVISIONS           MARCH     MARCH                       POLICY                                   Commitments                                      Use in 2011/12
                                2009      2010
                               £000      £000




                                                                                                                                                                                         Page 1 of 3
COUNCIL                                                                                                                                                                          ITEM 08
15 FEBRUARY 2011                                                                                                                                                             APPENDIX 08

                                                                                             Minimum reserve recommended by
                                            Finances insurance claims falling within self-   Broker. Policy is 110% cover of
                                            insurance limits. Reserve on all outstanding     Broker's estimated reserve (c.      Provides contingency to ensure losses are not charged
INSURANCE                 574       593
                                            claims. Evens the spread of losses and           £500k). Reserve will be revalued as to service accounts.
                                            insurance costs.                                 at 31 March 2011. Insurance
                                                                                             contract was re-let in 2010.
                                                                                                                                   S&R Committee approved £150,000 budget for one-off
                                            Provides funding for unavoidable costs on        Contingency against shortfall in
                                                                                                                                   staff costs to implement staff reductions from April
CORPORATE PROJECT                           development sites and for one-off costs          capital receipts for prioritised
                          575       699                                                                                            2011. Potential use for cancellation of lease
RESERVE                                     incurred on savings programmes including         projects including sites held
                                                                                                                                   agreements on ACCP barriers as part of Environment
                                            Spend to Save Investments.                       pending development
                                                                                                                                   Committee approved spend to save capital scheme.

                                            Reserve against liabilities for unrecoverable    Position reviewed annually at close
VAT RESERVE               148       148
                                            VAT payments (e.g. partial exemption)            of accounts

                                                                                      Capital element set aside for e-
                                                                                                                                   2011/12 estimates includes income of £150,000 for
                                                                                      planning / document management
                                                                                                                                   New Homes Bonus grant. Grant allocation due to be
PLANNING DELIVERY                           Unused PDG monies carried forward against system. Emergency Budget June
                          475       500                                                                                            announced February 2011. This reserve provides
GRANT                                       commitments in future years               2010 announced no grant payable
                                                                                                                                   contingency funding should grant be lower than
                                                                                      in 2009/10 requiring £184,000 use
                                                                                                                                   estimated.
                                                                                      to cover budgeted planning costs.

                                                                                             Budgeted use £380,000 in 2010/11
                                            Held against the risk of interest rate           based on the need to top up actual
                                            reductions. MTFS policy was to retain            interest rate return of 2%. Bank     Budget target includes potential use of £250,000 in
INTEREST EQUALISATION     842       963     £400,000 as a contingency against interest       base rate has remained at 0.5%       2011/12, assuming average interest rate returns of
                                            rate reductions, balance available as            and forecast return for this year is 1.5%.
                                            contingency for 2008-12.                         1.2 -1.5% which would require a
                                                                                             higher use estimated at £494,000.



                                                                                                                                    Fund acts as provision for emergency repairs where
                                                                                             Any surplus is carried forward to      budget insufficient. Strategy & Resources agreed in
PROPERTY MAINTENANCE                        Provision for prioritised backlog repairs and
                          213       244                                                      finance backlog repairs prioritised in January 2011 to carry forward funds for schemes not
FUND                                        maintenance
                                                                                             future years.                          completed in 2010/11 and to allocate £44,000 to two
                                                                                                                                    property repair jobs.


                        BALANCE   BALANCE
 RESERVES/PROVISIONS     MARCH     MARCH                       POLICY                                  Commitments                                     Use in 2011/12
                          2009      2010
                          £000      £000
                                            Provides for the replacement of plant and        Balance to be retained for
                                                                                                                                   Available for refurbishment or replacement of plant,
                                            equipment. Manages the risk of unplanned         replacement programme. Reserve
                                                                                                                                   vehicles or equipment, subject to scheme approval.
REPAIRS & RENEWALS        725       712     expenditure at all Council properties,           may be used for business case
                                                                                                                                   Available for urgent Health and Safety expenditures
                                            including health and safety expenditures         schemes where return on
                                                                                                                                   under delegated authority.
                                            where there is no separate budget.               investment identified.



                                                                                                                                                                                Page 2 of 3
COUNCIL                                                                                                                                                                      ITEM 08
15 FEBRUARY 2011                                                                                                                                                         APPENDIX 08

      Strategic Reserves    5,859   6,190
REVENUE WORKING
BALANCES
                                                                                         £2.5 million to be held as minimum
                                            Provision for unforeseen expenditure and
                                                                                         working balance. Maximum of
GENERAL FUND REVENUE                        used to support Revenue Budget in the
                                                                                         £1,000,000 to be made available to Budget target includes maximum use of £250,000 in
ACCOUNT WORKING             3,655   3,253   medium term. Interest on balance used to
                                                                                         help fund services between 2008    2011/12.
BALANCE                                     finance the General Fund revenue account.
                                                                                         and 2012. £281,000 forecast use in
                                            Policy is minimum balance of £2.5 million
                                                                                         2010/11.
                                                                                         Adjustments made annually to
                                            Surplus/Deficits on collection fund - EEBC                                         Surplus or deficit calculated for Budget Report
COLLECTION FUND             126      -7                                                  reduce surpluses or deficits on
                                            element.                                                                           (February)
                                                                                         collection fund (11% of total fund)
        Working Balances    3,781   3,246

   Total Revenue Reserves   9,640   9,436




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