Archived decisions

Capital Financing

 

 

 

 

Commentary and Statistics

Capital Financing

 

 

 

Revenue Budget

Actual

 

 

 

Original

 

Revised

 

Budget

Actual

 

 

Original

 

Revised

 

Budget

2007/08

2008/09

2008/09

2009/10

2007/08

2008/09

2008/09

 

2009/10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

£'000

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

Capital Financing

 

Capital Financing

 

 

 

This shows the operation of the County Council's capital accounting arrangements. The main features are:

32,099

Total Expenditure

43,607

35,456

49,781

-99,611

Reversal of Capital Charges

-64,935

-75,221

-75,065

- valuation of most capital assets on a current replacement cost basis

 

 

- capital charges to service revenue accounts for all capital assets comprising :

-67,512

Total Net Expenditure

-21,328

-39,765

-25,284

* a depreciation charge for all assets with a useful finite life

 

 

 

 

 

 

 

 

* an impairment charge to reflect any loss in value of assets

 

* a credit representing the writing down of any external financing over the life of the asset

 

- charges are also made to services to reflect the writing off of expenditure which can properly be capitalised

 

such as capital grants, but where no addition to the value of the County Council's fixed assets results

Capital Financing

 

 

 

 

 

 

- the level of these capital charges does not affect the County Council's overall budget requirement

Expenditure

 

 

 

 

 

because they are counteracted by a credit from the Capital Adjustment Account (see below)

28,844

Interest on loans

29,905

 

24,931

 

23,661

28,844

29,905

 

24,931

 

23,661

 

 

 

 

 

 

 

 

Income

 

 

 

 

18,285

Interest on balances

8,490

11,178

 

750

18,285

8,490

11,178

 

750

 

 

 

 

 

 

10,559

Net interest costs

21,415

13,753

22,911

 

 

 

 

 

 

Contribution from Capital Adjustment Account

Contribution from Capital Adjustment Account

 

 

 

 

 

 

The County Council has to provide for debt repayment at the minimum level required by legislation, approximately

Expenditure

 

 

 

equating to 4% of its capital financing requirement. The service revenue accounts have, however, already been

21,540

Loan repayments

22,192

21,703

26,870

charged with depreciation etc (see above) which exceeds this amount.

21,540

22,192

21,703

26,870

This excess of depreciation etc over debt repayment, £48.2 million in 2009/10, is credited to the revenue

 

 

 

account from the capital adjustment account.

 

 

 

Reversal of capital charges

 

 

 

-99,611

Depreciation and deferred charges

-64,935

-75,221

-75,065

 

 

 

(net of release of Government grants)

 

 

 

 

 

-99,611

-64,935

-75,221

-75,065

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess of Debt Repayment over Depreciation

 

 

 

 

 

 

-78,071

and Deferred Charges

-42,743

-53,518

 

-48,195

 

 

 

 

 

 

 

B112

B113