Agenda item

(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 Officer (Streetscene and Transportation) confirmed that a revised date for charging had been agreed as 1 February 2016 and that implementation had been delayed due to a number of objections raised which had now been addressed.  There would be an impact on the amount of income raised for 2015/16 due to the delayed implementation as this would now be for two months rather than a whole year.  The Strategy had been agreed in April 2015 and this had to be consulted upon and the objections received considered before the scheme could be rolled out.  The Chief Executive explained that parking charges had been the subject of complex discussions with the Trade Unions and a number of objections had been raised during the consultation period which had now been addressed;  it was anticipated that parking charges for the County Hall complex would be in place from 1 February 2016. 

            In referring to Flint, Councillor Peter Curtis asked when car parking charges were to be introduced.  Councillor Bernie Attridge responded that due to the number of changes because of the provision of the extra care facility, the health centre and regeneration of Flint, and the need to use temporary parking areas for a short term period, a decision had been made not to implement charges for car parking until longer term parking solutions had been identified.  He added that it was anticipated that charges would be introduced in the next financial year.

            Councillor Paul Shotton commented on the dramatic fall in the recycling values and suggested that the implementation of car parking charges and proposals for the Household Recycling Centres could have been delayed because the decisions had been called-in by Members.  He also commented on the increased level of property related income (£0.514m) and higher than projected income as a result of the Rent Review for Unilever (£0.173m).  The Corporate Finance Manager indicated that the £0.173m was a one-off income for backdated rent.    

Capital Programme 2015/16 (Month 6)

            The Corporate Finance Manager introduced the report to provide Members with the Capital Programme Monitoring 2015/16 (Month 6) which was also to be submitted to Cabinet on 15 December 2015.        

            Table 2 reflected changes during this period which included an increase for the Queensferry Roundabout Scheme totalling £0.800m which included £0.572 of Welsh Government (WG) grant funding.  A WG grant of £0.145m had also been received and this was to be used to upgrade the communal heating system in the Flint tower blocks.  The amount of expenditure for the Capital Programme was reported in table 3 and a rollover of £0.435m into 2016/17 was being proposed for approval by Cabinet for the Education & Youth Service and for Organisational Change.  The position on funding of 2015/16 approved schemes was reported in table 6 and showed a projected surplus of £1.179m to 2016/17. 

RESOLVED:

(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.