Archived decisions

		2009/10		2010/11		2011/12
	Estimated balance 1 April 2009	Proposed Variation in 2009/10	Estimated balance 1 April 2010	Proposed variation in 2010/11	Estimated balance 1 April 2011	Proposed variation in 2011/12	Estimated balance 1 April 2012
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Revenue account balance	28,969	-4,826	24,143	-5,143	19,000	-1,274	17,726
Earmarked reserves:
Schools *	43,571	0	43,571	3002	46,573	0	46,573
Trading units	7,486	83	7,569	240	7,809	-317	7,492
Service underspendings	12,123	-8,173	3,950	-2,200	1,750	-1700	50
Insurance	7,722	0	7,722	0	7,722	0	7,722
Second homes income	885	-40	845	-40	805	-40	765
Invest to save and modernisation	1,841	1,761	3,602	3,497	7,099	1,812	8,911
General capital	6,687	-6,687	0	0	0	0	0
Equal pay	37,429	955	38,384	1,610	39,994	1,800	41,794
Grant equalisation	24,905	-2,490	22,415	-3,735	18,680	-4,500	14,180
LABGI	993	0	993	0	993	0	993
Landfill Allowances trading	3,958	0	3,958	0	3,958	0	3,958
Corporate Policy fund	0	1,539	1,539	2,450	3,989	2,450	6,439
PSA reward grant	855	-621	234	-184	50	0	50
Other reserves	1,229	18	1,247	18	1,265	18	1,283
	149,684	-13,655	136,029	4,658	140,687	-477	140,210
Total reserve and balances	178,653	-18,481	160,172	-485	159,687	-1751	157,936
* School reserves of £3.0m are being temporarily utilised for education capital purposes under the school balances loan
scheme. It is anticipated that the current loans will be fully repaid by the end of 2010/11.

Summary of reserves and balances 2009/10 to 2011/12

Protocol for earmarked reserves

Reserve	Purpose	Use of reserve	Management and control	Review process
Schools	Earmarking of the balance of unspent delegated budgets.	1. To supplement school's budget share, to finance capital contributions and to provide a contingency.	Responsibility of headteacher and school governing body.	In addition to review by individual governing body, trends reviewed annually by Children's Services executive member.
		2. Up to 25% of total reserve made available on a loan basis to finance school capital projects of an `invest to save' nature. £3.0m has been advanced under this scheme, but expected to be fully repaid in 2010/11.	Proposals subject to approval of the capital programme, involving executive member, Cabinet and County Council approval.	Use of loan scheme subject to appraisal of projects and to 25% upper limit.
Trading units	To enable business units to carry forward planned surpluses.	To meet future deficits and/or restructuring costs, to fund capital investment or to return surpluses to customers by reducing prices.	By responsible Chief Officer subject to executive member approval.	Through production of an annual business plan linked to the budget process.
Service underspendings	To enable services to carry forward 100% of planned underspendings and at least 50% of unplanned underspendings.	To fund non-recurring expenditure in future years or to phase in the requirement for additional funding or to achieve savings.	By service Chief Officer reporting to the Executive member. Cabinet responsible for approval of cases where more than 50% of a saving is earmarked.	Reviewed annually as part of budget cycle. Planned underspendings of £6.7m in 2008/09 to be used to finance spending in 2009/10.
Insurance	To cover fire, flood and storm damage reinstatement costs which are already committed and to reserve against adverse trends in liability claims.	To supplement annual `premiums' charged to services.	Chief Executive and County Treasurer subject to Cabinet approval.	At least annually on closure of accounts.
Second homes income	Agreed to earmark additional council tax income from reducing the discount on second homes in 2004/05 for purposes agreed with the relevant district council.	To fund expenditure in future years on the agreed projects, mainly affordable housing.	By County Treasurer subject to Cabinet approval.	Reviewed at least twice yearly on closure of the accounts and in setting the budget. A decision was taken in June 2008 not to proceed with a Homebuy scheme, which had been intended to utilize most of the balance of the reserve.
General capital	To assist in matching the timing of the availability of capital financing resources with the timing of capital payments. It's purpose was extended in the 2008/09 budget to assist in managing the policy of not taking up supported borrowing in full and to earmark resources for potential strategic property investments.	To finance locally-resourced capital expenditure.	By County Treasurer in conjunction with decisions on the financing of the capital programme.	Reviewed at least twice yearly on closure of the accounts and in approving a new capital programme. The balance of the reserve is expected to be fully utilized in 2008/09 and 2009/10 as a result of the deferral of capital receipts.
Equal pay	To assist in meeting transitional costs and equal pay claim costs likely to arise from implementation of the Pay and Benefits review.	To supplement employee budgets in transitional period following implementation and to finance non-recurring implementation costs.	County Treasurer subject to Cabinet approval.	£845,000 is budgeted to be used in 2009/10 to fund transitional costs associated with completing the implementation of the review and dealing with equal pay claims. Interest is being added to the reserve in recognition of the impact of the delay in the Employment Tribunal hearings on the potential comparison payable.
Grant equalisation	To assist in managing the impact of future grant loss arising from 2006/07 formula changes, and subsequent changes to the formula in 2008/09.	To compensate for service and/or council tax impact of grant loss	County Treasurer subject to Cabinet approval	Revised in each year's budget planning. With grant loss commencing in 2008/09, proposed to utilise the reserve to phase the impact on council tax of grant loss over eight years to 2015/16, reflecting the likelihood that the County Council will remain below the grant floor for a number of further years.
LABGI	Reserve created in 2009/10's budget.	To contribute to programmes designed to promote economic prosperity, wellbeing and regeneration and other capital investment projects	Leader subject to Cabinet approval.	Reviewed as proposals emerge. The balance of the reserve is £993,000 at 31 March 2009.
Landfill allowances	A newly established reserve in 2005/06 to which income from the sale of landfill allowances is transferred.	Cabinet have agreed the principle that 40% of the income should be utilised subject to the approval of business cases, to finance investment in waste facilities to enable landfill and recycling targets to be met. The remaining 60% will be used to offset the costs of the waste management contact, the increased cost of which has been financed corporately.	County Treasurer and Director of Environment, subject to approval of the Leader and Cabinet.	Reviewed as part of budget and final accounts process. The market for land fill allowances is expected to be more active once the initial trading period ends at 31 March 2009.
Invest to save and modernisation	A new earmarked reserve established in the 2008/09 budget combining the two existing invest to save reserves, one of which originally established to fund improvements solely in Adult and Children's Services.	To fund improvements which will transform service provision and improve value for money from 2008/09 onwards.	Chief Executive and County Treasurer, subject to the approval of the Leader and Cabinet.	Use to be subject to the production of specific business cases. Contributions of £2.1M advanced in 2008/09 to fund investment in the foster care service, and other value for money initiatives. A further contribution of £1.9m is budgeted in 2009/10.
PSA reward grant	A reserve established in 2005/06 to earmark the £9.9m reward grant received in respect of LPSA 1 targets.	£1.5m earmarked to pump prime the Local Area agreement. £2.3m to repay unsupported borrowing incurred in respect of LPSAI, £1.5m for Home to School transport initiatives, £1m in respect of well-being and £3.6m for priorities identified by Environment and Children's Services in respect of grant relating to their targets.	Proposals subject to approval of Leader and Cabinet.	Decisions taken during the course of 2006/07 to utilise the reserve over the period to 2010/11.
Corporate Policy Fund	To redirect corporate efficiency savings to front line services, as the public spending outlook becomes more constrained.	To support investment in front line services.	Leader, subject to Cabinet approval.	Reviewed at least twice-yearly in approving the budget and final accounts.
Segensworth unit factories (included with other reserves)	To enable annual tenant contributions towards repairs to be earmarked for periodic major repair liabilities to infrastructure.	To fund maintenance of specific significant infrastructure costs which are the responsibility of the County Council as freeholder.	Director of Property, Business and Regulatory Services subject to terms of relevant agreement.	Reserve is ring-fenced.
Other minor reserves	Sums set aside for specific future purposes.	To fund spending on specified purpose.	Various.	Reviewed at least annually on closure of the accounts. Overall balance projected at £1,247,000 at 31 March 2010.