Statement of Accounts 2011/2012 - Blackburn with Darwen Borough ...

NOTES TO THE FINANCIAL STATEMENTS
11 Taxation and non specific grant income
2010/11 2011/2012
£000 £000
( 50,071 ) Council tax income ( 49,619 )
( 71,282 ) Non domestic rates ( 63,059 )
( 34,981 ) Non ringfenced government grants ( 44,081 )
( 24,547 ) Capital grants and contributions ( 23,188 )
( 180,881 ) Total ( 179,947 )
12 Property, Plant and Equipment
Depreciation
The following useful lives and depreciation rates have been used in the calculation of depreciation:
Land and buildings
Vehicles, plant, furniture and equipment
Infrastructure
1 – 50 years
1 – 20 years
2 – 40 years
Impairment
During 2011/12, impairment reversals (in relation to prior years’ impairment losses) of £364,000 have been
credited to the Adult Social Care line of the Comprehensive Income and Expenditure Statement.
Revaluation losses
For 2011/12, revaluation decreases recognised in the Surplus/Deficit on the Provision of Services include two
significant revaluation losses, as follows:
£’000
Infirmary area – formerly valued at cost of acquisition as part of the Housing Market Renewal
programme. Revaluation loss reflects market value of cleared site, which is significantly lower. 6,129
Darwen Vale High School - valuation reflects closure of school, as site is currently being
redeveloped as part of the BSF programme. 4,630
Capital Commitments
At 31 March 2012, the Council has entered into a number of contracts for the construction or enhancement of
Property, Plant and Equipment in 2012/13 and future years.
The majority of contractual commitments in place at 31 March 2012 are in relation to the Building Schools for the
Future (BSF) programme, which includes 3 schools funded under the Private Finance Initiative (PFI). By 2012/13
all 3 schools will have commenced a 25 year contract for the construction and maintenance of those schools. The
Council will make an agreed annual payment over the life of the contract, which is increased by inflation each
year. Capital payments remaining to be made under the PFI contract at 31 March 2012 are £27,087,000 for
Pleckgate High School, which became operational in September 2011, and £48,164,000 for Witton Park and
Blackburn Central high schools, which are scheduled to become operational in September 2012 (see Note 39
for further details). Also within the BSF programme, but funded directly by the Council rather that under a PFI,
are three design and build contracts for Darwen Vale High School, St Bedes RC High School and Tauheedul
Islam Girls’ High School. The committed expenditure is estimated at £19,000,000 for the 3 schools in total,
together with additional lifecycle costs of £5,795,000 for Darwen Vale High School (a proportion of which may be
charged to revenue). The committed capital expenditure relating to ICT for all schools within the programme is
£7,792,000.
The only other contractual commitment is in relation to the completion of works at St Silas’s school, amounting to
£809,000 (total contractual commitments at 31 March 2011 were £11.06M).
In addition, the Council has commitments to compensation payments estimated at £2,189,000, in relation to the
clearance of sites within the area development framework. Most of these will be paid over the next year as claims
are received, and have been provided for in the 2012/13 capital programme.
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