Appendix D - General Fund Forecast Adjustments
The following notes relate to the adjustments made to the forecast set out in Appendix C - Forecast Changes.
Impact of Outturn 2021/2022 and forecast extension
i - Slippage from 2021/22 - Slippage of £2.125m relating to underspends in 2021/22.
ii - 2026/27 Forecast Extension - The impact of adding a year to the financial forecast.
Other unavoidable spending pressures and changes to assumptions
iii - Release of Earmarked Reserves - Use of Earmarked Reserves to fund income losses and additional expenditure.
iv - Underspend challenge - £300k increase in underspend target in addition to the existing £350k pa target for 2022/23 to reflect savings achieved in preceding years. Savings proposal to increase this by £200k pa to £500k pa from 2023/24.
v - Fuel costs - Increasing fuel costs associated with operational vehicle fleet.
vi - Utilities - Utility costs are to rise significantly from next financial year.
vii - Insurance - Insurance costs have risen significantly due to market conditions and inflation.
viii - Audit Fees - External Audit fees are rising as part of the national contract award process led by PSAA Ltd.
ix - Increased in vehicle maintenance costs and vehicle hire - Increase in vehicle maintenance costs as a result of the fleet being not yet being replaced and incurring higher unscheduled maintenance costs.
x - Contribution from vehicle set aside to fund additional costs - This set aside is for funding the borrowing costs of vehicles however as delays to the purchasing the vehicle means the fund has not been called upon fully therefore available for funding the above costs.
xi - Other Price Inflation - General price inflation, particularly on maintenance costs.
xii - National Insurance % increase reversal - The increase set by the Government last year as been reversed.
xiii - Pay award - The national local government pay award negotiations resulted in a £1,925 increaser on all salary scales.
xiv - Pensions Triennial Review Revaluation - The 2022 revaluation of the Pension Fund has resulted in a surplus eliminating the need for additional payments previously required to cover the deficit.
xv - Added Years and AVC Savings - Savings due to changes in assumptions for retired pensioners, and existing staff AVC salary sacrifice scheme.
xvi - Urgent additional Tree maintenance - Rephasing of urgent tree maintenance required.
xvii - Reports to be brought to Members - The impact of various reports brought to members during 2022/23.
xviii - Interest payable and MRP re-phasing - Re-phasing of interest and MRP budgets.
xix - Investment Income increases - Increase in investment income returns due to increase in interest rates set by the Bank of England.
xx - Transfer to Treasury Reserve for future borrowing costs - Transfer of additional investment income returns to Treasury Reserve to fund future borrowing costs.
xxi - Fees and charges - Various minor changes to fees and charges budgeted income.
xxii - Vacancy savings - Increase in vacancy savings target over the forecast period.
xxiii - New Homes Bonus - New Homes Bonus set aside for future investment.
xxiv - Business Rates Revaluation 2023 - Impact of the 2023 business rates valuation list changes on our own properties
xxv - Business Rates - Harris - Reduction in Business Rates due to the Harris Museum being closed for refurbishment.
xxvi - City Centre Assets - Cost of city centre regeneration schemes.
xxvii - ICT - Strategy Reserve - Transfer to the ICT Strategy Reserve to fund future investment in ICT infrastructure.
xxviii - Rephasing and project slippage - Rephasing of 2022/23 budgets to future years where projects have been delayed.
xxix - Technical adjustment, release of contingency, and misc. - Various budget adjustments including technical accounting changes, corrections to budgets, transfers from earmarked reserves and release of contingency amounts not required.
xxx - New Council Tax Support Fund - Expenditure relating to the new government Local Council Tax Support Fund.
xxxi - New Council Tax Support Fund Grant - Grant income relating to the new government Local Council Tax Support Fund.