Appendix H - Summary of Earmarked Reserves at 31 March 2024
Perth and Kinross Council · 28 February 2024
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Appendix H Summary of Earmarked Reserves at 31 March 2024 Transformation and Workforce Management - £6.952 million The Council has resources earmarked to enable the Transformation & Change Strategy and workforce management in future years. Revenue Grants - £6.292 million These grants are being carried forward in Reserves in accordance with proper accounting practice as the grant conditions have been met but the relevant expenditure has not yet been fully incurred. It is possible that further grants will be received in advance of the financial year end, which will augment the projected earmarked Reserve. Developer Contributions: Commuted Sums & Infrastructure and Affordable Housing - £6.194 million The Enterprise & Infrastructure Committee approved supplementary guidance on 3 September 2014 for developer contributions covering community greenspace, primary education, Auchterarder A9 junction improvements, affordable housing and transport infrastructure (Report No. 14/370 refers). Developer Contributions are held in the Council’s earmarked Reserves until they are applied to relevant schemes. It is projected that approximately £1.561 million of unapplied resources in relation to affordable housing will be held by the Council at 31 March 2024 and it is proposed to earmark the unapplied amount within General Fund Balances. Additionally, it is proposed to earmark accumulated balances of £2.597 million for the provision of education infrastructure and £767,000 for transport infrastructure. Contributions are also provided by developers towards the cost of maintaining areas of ground. These contributions are used to fund relevant expenditure over a ten-year period. It is projected that approximately £1.269 million of unapplied resources for tree planting, play areas, community allotments and sports grounds will be held by the Council at 31 March 2024. In summary it is proposed to earmark the unapplied amount of developer contributions and commuted sums within General Fund Balances as follows:
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£m Affordable Housing 1.561 Education Infrastructure 2.597 Transport Infrastructure 0.767 Environmental Infrastructure 1.269 TOTAL 6.194 Affordable Housing (Resources accrued from reduced Council Tax Discounts) - £4.241 million It is anticipated that by the end of the current financial year, there will be a balance of approximately £4.241 million in earmarked Reserves which has been generated because of the Council’s policy of varying the level of Council Tax charged for long term empty properties and second homes. There are projected commitments against this reserve of £440,000 in 2024/25. School Estate - £1.900 million These resources include amounts previously approved by the Council for the primary and secondary school estate including maintenance works and resources for new schools. Anti-Poverty Measures - £1.847 million The Council approved the creation of a COVID-19 Reserve on 27 January 2021 (Report 21/8 refers) to assist with addressing the ongoing impact of Covid-19 in future years. This has now been redirected towards Anti-Poverty measures. The balance at the start of 2023/24 was £2.666 million. Car Parking - £1.512 million The Car Parking balance at 31 March 2024 is projected to be at a similar level as the previous year. This surplus is restricted in its application under the Road Traffic Regulation Act 1984 and any proposals to utilise these resources will require to be approved by the Finance & Resources Committee. Culture - £1.081 million There is £1.081 million earmarked for developing the cultural offer originally approved from an under spend in the 2018/19 Revenue Budget and transferred to a Cultural Reserve as part of 2018/19 Revenue Monitoring Report 2 to the Strategic Policy & Resources Committee on 28 November 2018 (Report No. 18/384 refers). This has been increased in future years by further underspends from the culture budget.
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Non-Recurring Revenue Budget Proposals - £0.703 million The 2024/25 Provisional Revenue Budget includes non-recurring expenditure proposals of £0.703 million which are funded by the Council’s earmarked reserves and have been approved during the year at the Finance & Resources Committee. Modern Apprentices / Graduate Trainees - £340,000 The Strategic Policy and Resources Committee originally approved the transfer of £150,000 during 2014/15 to fund future expenditure on modern apprentices and graduate trainees. The projected balance remaining at 31 March 2024 is £340,000 which includes current and previous year underspends. School Counsellors - £329,000 Revenue Budget 2020/21 Update No 2 to the Strategic Policy & Resources Committee on 25 November 2020 (Report No. 20/225 refers) approved the earmarking of resources received from the Scottish Government in respect of counselling in schools which were not anticipated to be spent in 2020/21 due to school closure during the lockdown period. These resources will be applied in 2024/25 and 2025/26 following the awarding of a three-year contract. Children and Young People’s Residential Care - £281,000 These resources were earmarked to be utilised in the provision of children’s social work services over 2 financial years in managing the impact of Covid-19 on higher levels of needs and reduce the number of residential placements. The balance of these resources will be utilised in 2024/25. Property Maintenance - £262,000 Revenue Budget Report 2021/22 No 3 to the Strategic Policy & Resources Committee on 24 November 2021 approved the earmarking of resources of £250,000 in respect of property maintenance to be utilised in future years. This was increased by a further £55,000 in 2021/22. Devolved School Management (DSM) - £239,000 The earmarked amount shown above is an estimate of the accumulated sum available to be carried forward at 31 March 2024 under the approved scheme for managing these budgets. The purposes for which the earmarked amount can be used and the procedures for its management and control are detailed in the Council’s approved DSM scheme (Report No. 15/507 refers). Works Maintenance - £200,000 It is proposed that the Council continues to earmark the balance of £200,000 for future works maintenance which remains from the £1.25 million approved as part of the 2018/19 – 2020/21 Revenue Budget.
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Community Resilience - £175,000 These resources were earmarked during 2023/24 at the Finance & Resources Committee for future weather events. Salix - £100,000 Salix Finance Ltd is a Government owned non-departmental public body which provides interest free loan funding for energy efficiency works. The loan is re-paid to the fund over a number of years and re-invested in future energy efficiency works. It is projected that the balance on the Fund at 31 March 2024 will be approximately £100,000 and this amount is shown as being earmarked within General Fund Reserves. PH2O (Perth Leisure Vision) - £62,000 The Strategic Policy & Resources Committee approved the transfer of £350,000 from a budget of £500,000 as part of 2019/20 Revenue Monitoring Report 3 to fund the future design and business operating model of the PH2O project (Report No 20/22 refers). The remaining balance of £62,000 will be utilised in future years on this project. Local Action Partnerships - £60,000 The amount shown is earmarked for Local Action Partnerships and is the balance of resources which were approved in 2017/18 Revenue Monitoring Report 3 by the Strategic Policy & Resources Committee (Report No.18/41 refers). These resources are approved for payment to groups via application to one of the seven local action partnerships. Local Government Elections - £53,000 These resources are earmarked in reserves as a contribution to local elections. Community Investment Fund - £38,000 It is proposed that the Council continues to earmark the remaining balance of £38,000 of the Community Investment Fund approved as part of the 2018/19 – 2020/21 Revenue Budget. Ventilation Measures £24,000 These resources are earmarked for ventilation measurers to be finalised in 2024/25. Financial Assistance - £20,000 There is a recurring annual contribution from reserves to fund any future Mods and other events across Perth and Kinross.