Agenda item

As detailed in the recommendations.

The Corporate Finance Manager introduced the Revenue Budget Monitoring 2017/18 (Month 10) report which provided the current revenue budget monitoring position for 2017/18 for the Council Fund and the Housing Revenue Account.   The report presented the position, based on actual income and expenditure, and projected how the budget would stand at the close of the financial year if all things remained equal.

            The projected year end position was:

Council Fund:

·         Net in year expenditure forecast an operating deficit of £0.375m;

·         The overall projected in-year position now included £1.422m due to the change in accounting policy for Minimum Revenue Provision (MRP) charges as agreed by County Council on 1^st March.  This had the effect of eliminating the operating deficit with net spend projected to be £1.047 less than budget; and

·         Projected Contingency Reserve balance as at 31^st March of £8.119m although that reduced to £5.714m when taking into account agreed contributions for the 2018/19 budget.

Housing Revenue Account:

·         Net in year expenditure forecast to be £0.035m greater than budget; and

·         Projected contingency reserve balance as at 31^st March 2018 of £1.081m.

The reasons for the projected variances were summarised in the appendix to the report with key significant portfolio variances explained in the report.

The report covered the latest in year forecast by portfolio; significant movements between Month 9 and Month 10 budget; achievement of planned in-year efficiencies; tracking of in year risks and emerging issues; winter maintenance; inflation and reserves and balances. 

At the recent Corporate Resources Overview and Scrutiny Committee, comments were made on the projected outturn for Out of County placements and charging across Wales, and the setting of realistic income targets in pest control.

The Chief Executive explained that additional grant funding of £0.428m was reported in the Older People service and was funding to contribute to additional expenditure incurred in Social Services due to winter pressures.  On planned in-year efficiencies, 94% would be achieved which was 1% less than the agreed target.  There was also a variance in Streetscene and Transportation due to the increased car parking charges only applying for 10.5 months this year instead of 12.

Councillor Shotton commented on the costs to the winter maintenance budget following the recent adverse weather conditions, which continued to put pressure on the winter maintenance budget.  The service had already exceeded its number of turnouts and it was projected that spend would be £1.059m which exceeded the budget by £0.215m.  However, that would be offset by the drawdown of a grant which was ring-fenced for rock salt.

RESOLVED:

(a)       That the overall report and the projected Council Fund contingency sum as at 31^st March 2018 be noted; and

(b)       That the transfer or £0.250m from the contingency reserve be approved to an earmarked reserve to use as a contingency against any financial issues arising as a result of implementing different service delivery methods; and

(c)        That the projected final level of balances on the Housing Revenue Account be noted.