The latest actuarial valuation of the pension fund has meant an increase in employers contribution rate, from 17.3% to 23%, from 1 April 2005.

 

Financial Reporting Standard (FRS) 17 requires elements of employers pension contributions to be shown as follows:

 

Ø      "Current service cost" included within service budgets - the assumed rate here for 2005/06 is 14% of pensionable pay (13.3% in the original 2004/05 budget, 13.6% in the revised figures)

 

Ø      The balance of employers contributions are shown "below the Cost of Services line", in the of the overall Summary on page 1, in an "appropriations section" - as indicated from the above, for 2005/06 this means 9% of pensionable pay (4% in the original 2004/05 budget, 3.7% in the revised figures)

 

 

It is expected that gas and electricity contract prices for most properties will rise and add some 50-55% to energy budgets. A 10% increase has been assumed for water services.

 

 

The rating revaluation of all properties will change business rates costs from 1 April 2005. Affected by both a new transitional relief scheme and a supplement to finance the small business rate relief scheme, the Council's rates bill has increased by some 6.9% overall.

 

 

Budgets for the repair and maintenance of buildings can consist of both a central budget (managed corporately by Facilities Management) and a local budget managed by the particular site manager.

 

In respect of the central element, priorities can change and whilst budgets may have increased or decreased on individual premises, the total central budget remains controlled within inflation.

 

 

Service management and support service costs included within Directorate, Office and Depot budgets (shown in the Resources Portfolio) are recharged to service accounts. The bases of apportionment are subject to at least annual review to reflect change and some variances from the 2004/05 original estimates will inevitably occur.

 

 

These are notional charges for the assets used in providing services, comprising of an interest element and a depreciation element.  However, the total of all capital charges is reversed out in the General Revenue Account Summary and the level of Council Tax is unaffected.

 

The interest rate used to determine the interest part of the capital charge (by being applied to asset values) is set by the Chartered Institute of Public Finance and Accountancy (CIPFA). It remains at 3.5% in 2005/06 for assets carried at current value, but for assets carried at historical cost, the rate has increased from 4.8% in 2004/05 to 4.95% for 2005/06.

 

Principally as a consequence of a revaluation of assets, the total for capital charges has increased by some £190k. Higher valuations for certain properties (e.g. Lyceum Theatre, Delamere House) have meant that capital charges for those services have changed more significantly than for others.