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Question from: County Councillor Adrian Jones Subject: Council Property
Question:
At the full council meeting on 22 nd of March , it was stated that the council had assets of around £ 938m . Could you provide a breakdown of the £938m assets by category and their value as assessed by the council currently , for example Primary schools , Secondary schools , County farm estate , car parks , depots ,offices etc .
Could you also provide a total of capital receipts received/approved by this current cabinet . Could these amounts be also be listed by total from each category .
Minutes: Response by the Cabinet Member:
Breakdown of the £938m assets by category:
The table below provides a breakdown by Category. It should be noted that of the £938m, just under £272m is attributable to the Housing Revenue Account (HRA).
For the list of assets, the values on the balance sheet and council accounts in the majority of cases is not the market (fair) value. The following provides a summary how the values are derived for each of the categories.
Assets Under Construction – Historic Cost (Costs incurred to date on these schemes). Community - Historic Cost. Heritage - Historic Cost. Infrastructure - Historic Cost with depreciation applied to reflect the consumption of the asset. Land & Buildings – These are valued on a five-year cycle with the valuation method depending on the type of asset, valuation methods include Depreciated replacement cost (DRC), Existing use value, Fair Value with depreciation applied to reflect the consumption of the asset. Council Dwellings - Existing use value – social housing (EUV–SH). Surplus - Fair value.
The definitions provided by CIPFA for each of the valuation type is provided below.
Depreciated replacement cost (DRC) is a method of valuation that provides the current cost of replacing an asset with its modern equivalent asset less deductions for all physical deterioration and all relevant forms of obsolescence and optimisation. Where DRC is used as the valuation methodology, authorities should use the ‘instant build’ approach at the valuation date and the choice of an alternative site will normally hinge on the policy in respect of the locational requirements of the service that is being provided.
Existing use value is the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing and where the parties had acted knowledgeably, prudently and without compulsion, assuming that the buyer is granted vacant possession of all parts of the asset required by the business, and disregarding potential alternative uses and any other characteristics of the asset that would cause its market value to differ from that needed to replace the remaining service potential at least cost.
Existing use value – social housing (EUV–SH) is the estimated amount for which a property should exchange, on the date of valuation, between a willing buyer and a willing seller, in an arm’s-length transaction, after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion, subject to the following further assumptions that: · the property will continue to be let by a body and used for social housing. · at the valuation date, any regulatory body, in applying its criteria for approval, would not unreasonably fetter the vendor’s ability to dispose of the property to organisations intending to manage their housing stock in ... view the full minutes text for item 1. |