Issue - meetings

(a)       That the Month 6 Revenue Budget Monitoring Report be received; and

(b)       That no formal recommendations be made to the Cabinet on this occasion.          

Revenue Budget Monitoring 2015/16 (Month 6)

                        The Corporate Finance Manager introduced a report to provide Members with the Revenue Budget Monitoring 2015/16 (Month 6) for the Council Fund and Housing Revenue Account (HRA) which was to be submitted to Cabinet on 15 December 2015.  

            For the Council Fund, the projected net in-year expenditure was forecast to be £0.291m higher than budget which was a reduction of £0.304m on the overspend at Month 5.  Appendix 1 detailed the movements from Month 5 which included a higher than expected income as a result of an ongoing rental review for the premises in Ewloe.  Appendix 3 provided details of the latest position of the programme of efficiencies and it was projected that £10.770m (84%) would be achieved resulting in a net underachievement of £2.104m.  Taking into account the current overspend at Month 6, the balance on the contingency reserve at 31 March 2016 was projected to be £4.245m.  A summary of Earmarked Reserves as at 1 April 2015 was reported and the Month 6 estimate for the amount of reserves at 31 March 2016 was £15,922,928.  The section on risk management included details of the levy of 15% that the Council was required to pay for Municipal Mutual Insurance (MMI) and the requirement to increase this levy in the future.  Options were being considered for meeting the potential significant liability and would need to be met from the contingency reserves.

            The Month 6 monitoring report for the HRA was projecting in-year expenditure to be £0.147m lower than budget and a projected closing balance as at 31 March 2016 of £1.384m.      

            In response to a query from Councillor Robin Guest on the amount of the increase for the MMI, the Corporate Finance Manager explained that it was anticipated that it would be an increase of 20% from 15% to 35% which equated to £0.800m. 

            Councillor Richard Jones referred to the lower than anticipated income from the Telecare Service, which he had calculated as being 1,000 fewer people using the service over a 26 week period, and queried whether this was correct.  The Corporate Finance Manager indicated that the shortfall in income was for 52 weeks and explained that further information on the reason for the variance had been shared with Members in the summary circulated by the Member Engagement Manager the previous day.

            Councillor Jones also queried the overspend in Democratic Services of £0.110m for an efficiency that was agreed within the 2014/15 budget and the revised efficiency for Staff Car Parking Charges of £0.030m.  In response, the Chief Executive reiterated that a detailed explanation on the reduction in Telecare income had been provided to Members.  On the Democratic Services efficiency, he indicated that there had been a delay in the completion of the staffing review but confirmed that it would be implemented.  The Chief Executive added that the revised efficiency for Staff Car Parking was due to a delay in the implementation of the scheme within the County Hall complex.  The Chief  ...  view the full minutes text for item 58