Agenda item 4 - MTFS (Final) Cab 070213 , item 9. PDF 1 MB

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4. Ratio of Financing Costs to Net Revenue Stream: 4.1 This is an indicator of affordability and highlights the revenue implications of existing and proposed capital expenditure by identifying the proportion of the revenue budget required to meet financing costs. The definition of financing costs is set out in the Prudential Code. 4.2 The estimate for interest payments in 2012/13 is £16.967m and for interest receipts is £1.5m. The ratio of financing costs to the Council’s net revenue stream is an indicator of affordability and highlights the revenue implications of existing and proposed capital expenditure by identifying the proportion of the revenue budget required to meet borrowing costs. The ratio is based on costs net of investment income. Ratio of Financing Costs to Net Revenue Stream 2012/13 Approved £m 2012/13 Revised £m 2013/14 Estimate £m 2014/15 Estimate £m 2015/16 Estimate £m <strong>9.</strong>70% 10.01% 8.71% 8.45% 8.17% 5. Capital Financing Requirement: 5.1 The Capital Financing Requirement (CFR) measures the Council’s underlying need to borrow for a capital purpose. The calculation of the CFR is taken from the amounts held in the Balance Sheet relating to capital expenditure and its financing. Capital Financing Requirement 2012/13 Approved £m 2012/13 Revised £m 2013/14 Estimate £m 2014/15 Estimate £m 2015/16 Estimate £m 403.096 401.270 380.899 361.293 342.380 6. Actual External Debt: 6.1 This indicator is obtained directly from the Council’s balance sheet. It is the closing balance for actual gross borrowing plus other long-term liabilities. This Indicator is measured in a manner consistent for comparison with the Operational Boundary and Authorised Limit. Actual External Debt as at 31/03/2012 £m Borrowing 333.301 Other Long-term Liabilities 10.565 Total 343.866 7. Incremental Impact of Capital Investment Decisions: 7.1 This is an indicator of affordability that shows the impact of capital investment decisions on Council Tax. The incremental impact is calculated by comparing the total revenue budget requirement of the current approved capital programme with an equivalent calculation of the revenue budget requirement arising from the proposed capital programme. Incremental Impact of Capital Investment Decisions 2012/13 Approved £ 2013/14 Estimate £ 2014/15 Estimate £ 2015/16 Estimate £ Increase in Band D Council Tax 0.12 0.00 0.00 0.00 85
7.2 The Council’s capital plans, as estimated in forthcoming financial years, have a nil impact on Council Tax. This reflects the fact that capital expenditure is predominantly financed from grants, contributions, capital receipts, and internal resources, and that any increase in the underlying need to borrow is supported through the Revenue Support Grant system. 8. Authorised Limit and Operational Boundary for External Debt: 8.1 The Council has an integrated Treasury Management Strategy and manages its treasury position in accordance with its approved strategy and practice. Overall borrowing will therefore arise as a consequence of all the financial transactions of the Council and not just those arising from capital spending reflected in the CFR. 8.2 The Authorised Limit sets the maximum level of external borrowing on a gross basis (i.e. not net of investments) for the Council. It is measured on a daily basis against all external borrowing <strong>item</strong>s on the Balance Sheet (i.e. long and short term borrowing, overdrawn bank balances and long term liabilities. This Prudential Indicator separately identifies borrowing from other long term liabilities such as finance leases. It is consistent with the Council’s existing commitments, its proposals for capital expenditure and financing and its approved treasury management policy statement and practices. 8.3 The Authorised Limit has been set on the estimate of the most likely, prudent but not worst case scenario with sufficient headroom over and above this to allow for unusual cash movements. 8.4 The Authorised Limit is the statutory limit determined under Section 3(1) of the Local Government Act 2003 (referred to in the legislation as the Affordable Limit). The Council’s Authorised Limit is shown below. Authorised Limit for External Debt 2012/13 Approved £m 2012/13 Revised £m 2013/14 Estimate £m 2014/15 Estimate £m 2015/16 Estimate £m Borrowing 523.439 502.627 503.059 503.521 504.058 Other Long-term liabilities 1.561 22.373 21.941 21.479 20.942 Total 525.000 525.000 525.000 525.000 525.000 8.5 The Operational Boundary links directly to the Council’s estimates of the CFR and estimates of other cashflow requirements. This indicator is based on the same estimates as the Authorised Limit reflecting the most likely, prudent but not worst case scenario but without the additional headroom included within the Authorised Limit. 8.6 The Strategic Finance Director has delegated authority, within the total limit for any individual year, to effect movement between the separately agreed limits for borrowing and other long-term liabilities. Decisions will be based on the outcome of financial option appraisals and best value considerations. Any movement between these separate limits will be reported to the next appropriate meeting of the Council. The Council’s Operational Boundary is shown below. Operational Boundary for External Debt 2012/13 Approved £m 2012/13 Revised £m 2013/14 Estimate £m 2014/15 Estimate £m 2015/16 Estimate £m Borrowing 493.439 472.627 473.059 473.521 474.058 Other Longterm liabilities 1.561 22.373 21.941 21.479 20.942 Total 495.000 495.000 495.000 495.000 495.000 86
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Gloucestershire County Council Medi
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7 The capital budget strategy refle
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This will then provide a further £
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The draft budget was also considere
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for non Academy Schools. These amou
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• Providing the basics - In the c
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(1) The budget provides for contrac
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Any increase in a school’s depriv
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In the future there is a risk that
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40 Council’s financial standing a
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2014/15 2015/16 £m £m Budget 420.
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Entry’ approval had been given, w
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escheduling, and investments. • P
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ANNEX 1.1 : COMMISSIONING INTENTION
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Delivering Change Achieving improve
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Currently an estimated 38,000 older
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ANNEX 1.3: COMMISSIONING INTENTIONS
Page 35 and 36: Looking Forward Some of the changes
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Page 58 and 59: Forward Planning 2013/14 to 2015/16
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Page 100 and 101: ANNEX 11 RISK MANAGEMENT STRATEGY 2
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Agenda item 4 - MTFS (Final) Cab 070213 , item 9. PDF 1 MB

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