Agenda item

            (a)       That the Revenue Budget Monitoring Report (Month 5) be received;

(b)       That no formal recommendations be made to Cabinet on this occasion; and

(c)        That the Budget Monitoring Report for next month should include detail on income variations and that there be an item on the overspend in Streetscene & Transportation. 

The Finance Manager Corporate Accounting and Systems introduced a report to provide Members with the Revenue Budget Monitoring 2015/16 (Month 5) for the Council Fund and Housing Revenue Account (HRA) which was to be submitted to Cabinet on 17 November 2015. 

                        For the Council Fund, the projected net in-year expenditure was forecast to be £0.595m higher than budget which was an increase £0.170m on the overspend at Month 4.  Appendix 1 detailed the movements from Month 4 which included further reductions in the recycling market and the delay in the implementation of car parking charges in some areas.  Appendix 3 provided details of the latest position of the programme of efficiencies and it was projected that £10.803m (84%) would be achieved resulting in a net underachievement of £2.071m.  There had been no change since Month 4 to the amounts held for inflation and the full details of the amounts held were reported in paragraphs 1.08 to 1.10.  Taking into account the current overspend at Month 4, the balance on the contingency reserve at 31 March 2016 was projected to be £3.941m.  A summary of the Earmarked Reserves had been presented at Month 4 and quarter 2 information would be reported as part of the Revenue Monitoring Report 2015/16 (Month 6).        

                        The Month 5 monitoring report for the HRA was projecting in year expenditure to be £0.041m higher than budget and a projected closing balance as at 31 March 2016 of £1.196m, which at 4% of total expenditure satisfied the prudent approach of ensuring a minimum level of 3%. 

                        Councillor Ron Hampson raised significant concern about the late implementation of car parking charges in some areas such as Queensferry, Shotton and Flint when compared to Buckley where charges had been implemented in August 2015.  He queried why all of the charges had not been applied at the same time and suggested that a large amount of money had been lost and that staggered implementation had been unfair. 

                        In response, the Chief Executive commented on the complexity of the implementation of the scheme in Flint, particularly as a result of the ongoing works in the area, but it was intended that charging would be in place early in 2016.  He added that he could provide details of the timescales if required. For the County Hall site, it was anticipated that charging would be implemented from 1 January 2016. 

                        Councillor Marion Bateman sought clarification on the former Euticals site and whether it had now been declared safe.  The Chief Executive advised that the project had been complex and spoke of the scheme to remove the remaining specialist chemicals.  The site was now safe but work would continue for a few more months to complete all of necessary works before the site could be sold. 

                        Councillor Richard Jones referred to the overspend of £1.108m in Streetscene & Transportation due to the delay in implementation of car park charges and also because of increased pressure on income projections due to fluctuations in recycle sales because of a volatile market.  He felt that it was unfair that some towns had implemented charges when others had not and concurred that the charges should all have been applied at the same time.  He also spoke about the reduction in the use of the Telecare Service and queried whether this was due to charges imposed for the service.  Councillor Jones asked that further information be received from the Chief Officer (Streetscene & Transportation) about the reduced income and why some areas were not producing the income that they should and suggested that he be asked to attend the next meeting of the Committee to provide an explanation; this was duly seconded.  On the issue of car parking, the Chief Executive noted the concerns raised by Members.  The issue of fluctuations in recycling sales was a major shared concern but he added that it was not possible for individual services to incorporate and that the risk needed to be looked at corporately.  The Chief Executive confirmed that the Chief Officer (Streetscene & Transportation) would be asked to attend the next meeting to specifically discuss his area, but that income generation in general would also be discussed. 

            RESOLVED:

            (a)       That the Revenue Budget Monitoring Report (Month 5) be received;

(b)       That no formal recommendations be made to Cabinet on this occasion; and

(c)        That the Budget Monitoring Report for next month should include detail on income variations and that there be an item on the overspend in Streetscene & Transportation.