Issue - meetings

To summarise the financial position of the joint waste PFI for the 2011 Annual General Meeting of the Joint Waste Disposal Board.  It seeks to conclude the management of finances in the 2010/11 year; details the emerging position in the current year and presents the first draft of the budget for the 2012/13 year.

The Board considered a report summarising the financial position of the joint waste PFI.  It sought to conclude the management of finances in the 2010/11 year; detailed the emerging position in the current year and presented the first draft of the budget for the 2012/13 year.

The Board was advised that based on actual tonnage and costs for the first three months and forecast tonnages and costs for the remainder of the year, the project was currently projecting a £338k over spend against budget.  This overspend was attributed to contract waste tonnage for the first quarter being up 2000 tonnes, or 4%, on the forecast, and that the budget for the current year assumed inflation at 4.6%, but by April 2011 had increased to 5.3%. 

The draft waste disposal budget for 2012/13 was based upon estimated tonnages derived from a waste modelling exercise which the councils had completed in July 2011. 

In response to questions, the officers advised that assumptions about inflation had to be based on the best information at the time the budget was set in April, even though it was accepted that in the current volatile economy, the rate was likely to vary and may go down in the course of the year.  The officers also clarified what elements had and had not been taken into account both in the 2010/11 and 2011/12 budgets.

NOTED