APPENDIX 1

Appendix 4 to Paper B1 as presented to Cabinet and Full Council on 22 February 2006

The main categories of reserve are:

Schools balances	Held by individual schools, can be general reserves of earmarked to specific projects
Insurance Funds	Provide cover for insurable risks where commercial cover is either not cost effective or unavailable
Slippage Reserves	The mechanism for providing funding for capital or revenue projects which slip into future years
Repairs and Renewals	Comprise 27 service specific reserves, of which the largest relates to the business continuity project
Earmarked Reserves	A range of service specific and corporate reserves including redundancy and spend to save
Non-insurable Risks	A single pooled reserve equivalent to approximately 60% of identified risks for which insurance cover is not available

Planned balances (excluding schools) over the life of this Council are:

	01/04/2005	01/04/2006	01/04/2007	01/04/2008	01/04/2009
Insurance Funds	8,669,000	8,669,000	8,669,000	8,669,000	8,669,000
Repairs and Renewals	2,617,370	1,703,829	653,417	593,366	471,556
Slippage Reserves	4,879,663	481,000	271,000	271,000	271,000
Earmarked Reserves	11,585,319	6,911,159	4,066,168	2,402,079	2,234,101
Non-insurable Risks	2,858,372	3,883,034	3,493,661	3,259,496	5,717,253
Total	30,609,724	21,648,022	17,153,246	15,194,942	17,362,911

This is shown graphically below, with the right hand column showing possible liabilities remaining at the end of the period.