4. Capital Investment Programme
Each financial year the Authority produces a capital programme to manage major
schemes. Owing to the nature of capital expenditure a large number of schemes
span more than one financial year so the programme is a rolling programme
covering five financial years. The Authority's five-year capital investment
programme 2013/2014 to 2017/2018 totals �31.484m it includes:
- Spending on fire engines and operational equipment in order to ensure
Merseyside's Firefighters remain safe
- Investment in maintaining Fire Stations and other buildings.
- Investment in Information Technology (IT)
Proposed Authority Capital Programme for 2013/2014 - 2017/2018
Most of the capital programme is funded by borrowing and is in line with the
Authority's approved prudential borrowing limits and treasury management
strategy.
5. Reserves and Balances
After maintaining a �6.5m reserve for grant related or contractually committed
projects. The Authority is forecasting having the following reserves and
balances available in 2013/2014:
|
|
�'000 |
|
|
|
|
Insurance / Catastrophe Reserve |
1.0 |
|
Inflation / Pension Reserve |
1.5 |
|
Capital Reserve |
2.0 |
|
Cost Smoothing Reserve |
5.5 |
|
Recruitment Reserve |
1.0 |
|
Serverence Reserve |
1.0 |
|
Total
|
12.0 |
|
|
|
|
General Fund |
2.9 |
|
|
|
The Authority has prudently planned to meet its financial challenges over the
medium term. The plan the Authority proposes is based upon the key assumptions
around changes to grant, pay, tax and pension costs. To protect and safeguard
the Authority from unforeseen changes in circumstances, demands or assumptions
made in setting the budget the Authority has established general fund and
specific earmarked reserves.
However reserves and balances can only be used to
finance one-off expenditure. They are not able to fund ongoing revenue
expenditure. This is underlined by the District Auditor's 'Golden Rule' - that Sone off revenue reserves should not be used to support ongoing revenue
expenditure.
If you have any comments on any aspect of the financial information contained on the website or would like further information please contact Ian Cummins by
e-mail: iancummins@merseyfire.gov.uk
Tel: 0151 296 4244