CHILTERNS CREMATORIUM JOINT COMMITTEE -   15th January 2009

 

 

 

OPEN REPORT OF THE TREASURER

 

TO THE JOINT COMMITTEE

 

 

 

 

 

1     CAPITAL EXPENDITURE

 

     Contact Officer: Alison Howes (01494 732260)

 

1

Details of actual expenditure to 31 March 2008 plus budgeted expenditure for the current year and the following three years are shown in Appendix A (1).

 

 

 

2

A balance of £67,324 remains to be paid to the main contractor, comprising £19,837 liquidated and ascertained damages and £47,487 retention monies. A payment of £20,000 in respect of defective works has recently been paid. It is also expected that a further payment in respect of professional fees will be incurred.

 

 

 

3

Preliminary work on the filtration project is now underway. A provisional capital cost of £1.2 million plus unrecoverable VAT giving a total of £1.41million has been allowed the capital projections. In addition fees of £120,000 plus unrecoverable VAT giving a total of £141,000 have been included. The input VAT is not recoverable on this project as it relates solely to the exempt activity of cremation, due to the amount of exempt income generated the Crematorium cannot recover any input VAT directly related to cremation and currently can only recover around 10% of the input VAT relating to “mixed” activity. All input VAT in respect of memorials is fully recoverable.

 

 

 

4

An additional item of £20,000 has been included for 2009/10 in respect of the Boundary fencing. A further explanation for this additional project is included in the reports presented by the Superintendent to this meeting.

 

 

 

5

No capital provision has been made for any further strategic developments in future years.

 

 

 

     RECOMMENDATIONS

 

 

 

That the capital expenditure programme for 2008/2009 to 2011/2012 be agreed.

 

 

 

 

 

Background Papers: None

 

 

 

2     FEES AND CHARGES

 

     Contact Officer: Alison Howes (01494 732260)

 

1

The recommended Fees and Charges are shown in Appendix B together with the current year charges. Last year the main cremation fee (excluding organists’ fees) was increased from £370 to £390. From the table below it can be seen that the Chilterns Crematorium fee is lower than surrounding Crematoria, both including and excluding the organist charge. An increase of 2.56% to £400 is being proposed for 2009/10, even at this level the fee will remain the lowest when compared with neighbouring authorities, even using the current year values.

 

 

 

2

The table below shows the current year fees for Chiltern and neighbouring crematoria for comparison purposes.

 

 

 

Crematorium

2008/2009

Fee

£

2008/09 Fee

With Organists

£

Chilterns

390

420

Slough

495

495

Reading

425

425

Bracknell

495

523

Milton Keynes

448

511

West Herts

440

440

Ruislip

465

465

Oxford

510

510

Average charge in UK

434

441

 

 

 

3

The balances continue to accumulate and consideration of the capital programme including the filtration project and the potential of additional capital requirements for any future strategic developments requires the Joint Committee to be mindful of these projects when agreeing the fee level. An increase of 2.56% to £400 is the minimum increase recommended to the Joint Committee. The impact of larger fee increases on income levels is shown in the table below:-

 

 

 

Fee

Additional Income over 2008/09 levels

£400

29,000

£405

43,500

£410

58,000

£415

72,500

£420

87,000

 

 

 

4

The other fees have been increased in general by 3%.

 

 

 

RECOMMENDATION

 

 

 

That the Joint Committee determine the fees and charges as shown in Appendix B and in particular discuss the level of the main cremation fee.

 

 

 

     Background Papers: None

 

 

 

3     REVENUE

 

     Contact Officer: Alison Howes (01494 732260)

 

1

     The detailed revenue estimates are shown at Appendix C and the table below shows the summary comparison between the revised and original estimate for 2008/09 and the original estimate for 2009/10 compared to the original estimate for 2008/09.

 

 

 

 

2008/09

Original

£

2008/09

Revised

£

 

Movement

£

2009/10

Original

£

 

Movement

£

Revenue Expenditure

701,280

725,920

24,640

752,740

51,460

Capital Expenditure

109,275

141,028

31,753

1,596,483

1,487,208

Income

(1,342,990)

(1,308,160)

34,830

(1,315,510)

27,480

(Surplus)/Deficit for year

(532,435)

(441,212)

91,223

1,033,713

1,566,148

 

 

 

2

Revenue expenditure in the current year is expected to be slightly above the original estimate and a further increase is shown in 2009/10. In general terms a 2% inflation increase has been applied to expenditure estimates. The key areas of change are explained below:-

 

 

 

·

Long Service Awards

 

 

 

This year has seen three long service awards which were brought to the attention of the Committee at the end of the previous meeting.

 

 

 

·

Maintenance of Buildings

 

 

 

The current year increase is primarily due to the carried over works from 2007/08 in respect of internal decoration, remedial works to the electrical hard wiring and lightening protection at a cost of £10,866. In addition further work was identified with regard to the lightening protection system at an additional cost of £2,500.

 

 

 

For 2009/10 in addition to routine expenditure (£5,330) and a contingency amount for unexpected repairs etc (£5,000) there is additional planned work that includes repairs to a parapet wall and brickwork pointing, electrical re-wiring of bungalow 1, replacement of original metal framed windows in bungalows with UPVC double glazing, redecoration of chapel of remembrance and refurbishment of chapel oak doors (£19,326).

 

 

 

·

Waste Disposal

 

 

 

The Crematorium has benefited from a locally reduced rate for waste disposal charges however this area is subject to large increases and it is unlikely that this reduced rate can be maintained into and beyond 2009/10. Allowance has been in 2009/10 for an increase and during that year market testing for the provision of waste disposal is proposed.

 

 

 

·

Water

 

 

 

Monitoring of water usage highlighted a leak which was quickly resolved however it has led to an increase in costs in the current year with the provision for 2009/10 returning to normal usage levels.

 

 

 

·

There have also been budget changes in the following areas and the reasons for these are explained in separate reports by the Crematorium Superintendent.

 

 

 

(a)

Medical Referees

 

(b)

Security

 

(c)

Grounds Maintenance

 

(d)

Book of Remembrance

 

 

 

4

The main income stream is from cremation fees and the figure used in the 2008/09 original estimates was based on 3000 cremations. The revised income figure has reduced and is based on an anticipated reduction in the number of cremations to 2900 although this figure may increase with current flu levels. Income estimates for 2009/10 reflect the proposed fees and charges as detailed in Appendix B, but will depend upon the Joint Committee’s decision on the main cremation fee. Other income is generally on target however the significant reduction in interest rates in the current economic climate and the anticipated expenditure on filtration and subsequent reduction in reserves has affected the anticipated interest.

 

 

 

5

It should be noted that for the purposes of the estimates no figures have been included for Capital Charges. This is because the expenditure item is reversed out through the Asset Management Reserve and has no impact on the bottom line surplus.

 

 

 

6

For information the following table shows the forecast surplus / deficit by Authority:-

 

 

 

 

 

District Council

 

Balance

31.3.2008

 

£

 

Apportionment

2008/09

Revised Estimate

£

 

Estimated Balance

31.3.2009

 

£

 

Apportionment

2009/10

Original Estimate

£

 

Estimated Balance

31.3.2010

 

 

Aylesbury Vale

Chiltern

Wycombe

 

  286,358

374,167

  482,574

 

  133,146

  133,763

  174,303

 

  419,504  507,930

  656,877

 

(311,946)

(313,392)

(408,375)

 

107,558

194,538

248,502

Totals

 

1,143,099

 

441,212

 

1,584,311

 

(1,033,713)

 

550,598

 

 

 

 

 

7

The projected annual revenue surpluses for the three years to 2011/012 based on the latest draft budget is shown in Appendix A(2) Table 1 with the projected overall financial position shown in Table 2. After the significant capital expenditure on the filtration project during 2009/10 reserves are expected to increase to just over £1.6m by the end of 2011/12.

 

 

 

 

 

 

 

RECOMMENDATION

 

 

 

That the Joint Committee approve the 2008/2009 revised and 2009/2010 original revenue estimates, subject to any revisions it wishes to make.

 

 

 

     Background Papers: None

 

 

 

 

 

 

 

Alison Howes

 

Treasurer