Issue - meetings
Revenue Budget Monitoring 2020/21 (Outturn) and Capital Programme Monitoring 2020/21 (Outturn)
- Enc. 1 - Cabinet report (Revenue), item 18 PDF 2 MB
- Enc. 2 - Cabinet report (Capital), item 18 PDF 516 KB
- Webcast for Revenue Budget Monitoring 2020/21 (Outturn) and Capital Programme Monitoring 2020/21 (Outturn)
(a) That having considered the Revenue Budget Monitoring 2020/21 (Outturn) report, the Committee confirms that there are no specific issues to raise with Cabinet apart from the review of service balances; and
(b) That having considered the Capital Programme Monitoring 2020/21 (Outturn) report, the Committee confirms that there are no specific issues to be raised with Cabinet.
The Corporate Finance Manager and Finance Manager (Corporate Services) and Finance Manager (Technical, Capital & Systems) presented a report on the Revenue Budget Monitoring 2020/21 (Outturn) and the Capital Programme 2020/21 (Outturn) prior to consideration by Cabinet.
Revenue Budget Monitoring
The report took into account the latest position on claims made to the Welsh Government (WG) Hardship fund and Income Loss funding streams which had proved critical throughout the emergency period.
On the Council Fund, the final year-end position was an operating surplus of £2.185m (excluding the impact of the pay award which had been met from reserves) leaving a contingency reserve balance of £5.973m. Explanation was given on the reasons for the favourable net movement from the previous month, as set out in the report, which were mainly one-off benefits. An update was provided on the key financial risks, achievement of planned in-year efficiencies, and the position on reserves and balances as detailed in the report. On earmarked reserves and in response to earlier comments, the increase in service balances (requested for specific uses and split across portfolios) was mainly due to delays in spending due to the emergency situation.
On the Housing Revenue Account (HRA), an underspend of £2.866m would leave a closing un-earmarked balance of £4.875m, which was above the recommended guidelines on spend. The increased contribution to reserves in 2020/21 would fund the re-phased capital works now anticipated in 2021/22 and would offset future borrowing associated with these works.
In response to questions from Councillor Richard Jones, officers explained that a delay in the procurement of CCTV hardware upgrades within Streetscene & Transportation had caused an adverse movement and would be spent as a carry forward amount in this financial year. On the shortfall in Council Tax collection during the emergency, the financial contribution from Welsh Government had been set aside as a safeguard and would be reviewed against potential future bad debts, with any positive impact held in reserves.
The revised programme for 2020/21 was £66.236m taking into account all carry forward sums and savings transferred back to the programme. Changes during the last quarter were mainly due to the introduction of grant funding streams and budget re-profiling. Actual expenditure for the year totalled £62.915m which was 94.99% of the budget, leaving a £3.321m underspend recommended to be carried forward for the completion of schemes in 2021/22. Also reported were details of savings identified during the last quarter and the overall surplus funding position of £1.968m for the three year programme which would lead to an opening balance of £2.112m in the 2021/22 programme.
Officers provided clarification to Councillors Patrick Heesom and Haydn Bateman on savings identified in the last quarter from the partial demolition of County Hall and the North Wales Residual Waste Treatment Project.
Councillor Richard Jones asked that the resolution reflect his previous request for the review of service balances. On that basis, the recommendations were moved and seconded by Councillors Paul Shotton and Sean Bibby.
(a) That having considered ... view the full minutes text for item 18