Public reports pack PDF 3 MB - Blaby District Council

6.5 Estimated Resources Carried Forward
6.5.1 The total resources estimated to be carried forward into 2013/14 are £985,499
but of this £809,620 is already committed or ring fenced as follows:
VAT Shelter Receipts from Three Oaks Homes
277,441
Special Schemes Reserve Fund 42,763
Computer Room Reserve Fund 100,000
Leisure Centre Renewals Fund 389,416
Total 809,620
6.5.2 This leaves only £197,879 available to spend on new projects or variations
within current projects. The Asset Management Group are monitoring spend
against projects very closely to ensure that the resources are maximised in
this financial year.
6.5.3 Should any significant asset issues arise requiring immediate attention,
having only £197,879 available is cause for concern. It is not sustainable to
continue to borrow regardless of the current interest rates available as
repayments of principle/interest have to be found from within an ever
constrained revenue account. This concern was highlighted in the 2009/10
Financial Statement Audit report by the authority’s external auditors,
PriceWaterhouse Coopers.
“With lower levels of receipts now available to the Council in the Usable
Capital Receipts reserve, future capital funding will need to come from
increased borrowing or through the use of revenue resources. In either
case the long term consequences will mean an additional charge to
revenue, either through the impact of financial capital expenditure directly
with revenue resources or through the additional interest payments of
long term borrowing. The Council should consider the long term
consequences on the revenue budget of future capital expenditure.”
6.5.4 Accordingly, any capital projects that gain approval for 2013/14 will again
largely have to be funded from borrowing. Asset disposals have diminished in
recent years from an already low base of building assets. It is, therefore, likely
that Members will once again be asked to consider a substantially reduced
capital programme for the forthcoming financial year.
7. Other Relevant Considerations
Human Rights Act 1998
N/A
Legal Implications
N/A
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