Public reports pack PDF 3 MB - Blaby District Council

Pavilion – Huncote 149,280 82,140 85,039 2,899 153,304
Pest Control 31,000 23,870 10,952 (12,918) 13,824
Car Parks 125,700 62,346 51,948 (10,398) 125,700
TOTAL 2,935,816 1,626,139 1,530,649 (95,490) 2,788,095
It can be seen from the above table that, in total, the first half year outturn
income from all these sources is £95,490 or 5.87% below the original profiled
estimate. The full year outturn forecast indicates an overall negative variance
of £157,721 or 5.37% for these income streams. Specific comments are set
out below.
6.3.4 Development Control/Building Control
Fees and charges from Development Control and Building Control have a
strong correlation to the state of the local economy. Building Control fees are
running ahead of budget at the half year stage but since income is traditionally
weighted towards the spring and summer months it is anticipated that income
will outturn around budget. Development Control income is significantly below
profile at the end of September 2012. This is as a result of a number of factors
including a reflection of the current state of the economy, the seasonal
variations in submission of applications, and developers holding back the
submission of large fee income generating schemes pending the initial
outcomes of both the Core Strategy Examination in Public and the
determination of the Sustainable Urban Extension application at
Lubbesthorpe. Consequently the revised income forecast has been reduced
to £325,000
The fee of £125,000 received for the application in respect of the proposed
development at Lubbesthorpe has been transferred into an earmarked
reserve and all additional costs associated with dealing with this application
are being off-set against this income. The original fee income has been
supplemented with a further £50,000 at the 2011/12 year end to take account
of the extended time required to process and determine the application.
6.3.5 Investment Income
The Council generates investment income in two ways. Firstly through its
externally managed investment fund valued at £5.541m at 1 st April 2012 and
secondly through earnings on short term cash flow surpluses.
With regard to the former it was originally estimated that the fund would return
a rate of 1.1% over the full financial year, compared to a rate of 1.38% during
2011/12 based on advice received from the fund managers. The fund
managers are required to achieve a return over the year of at least 0.5%
above the London Interbank Bid rate (LIBID) for local authority seven day
money (which is currently 0.37% per annum) and therefore their benchmark
return for the year is 0.87%. Current performance to the half year stage
indicates an annual return of 1.64%, however this rate of return is expected to
fall away significantly in the second half year to an annual rate of around
1.15%.
The Cabinet Executive has previously approved the following change in
direction of the Council’s Investment Strategy:
• To utilise a proportion of the funds currently held with Scottish Widows
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