Agenda item

(a)       That the Committee approves the Revenue Budget Monitoring 2016/17 (Month 9) and confirms that there are no specific issues to be brought to the attention of the Cabinet; and

(b)       That the Committee approves the Capital Programme monitoring 2016/17 (Month 9) and confirms that there are no specific issues to be brought to the attention of the Cabinet.

The Finance Manager - Strategy Accounting & Systems and Finance Manager - Technical Accountancy presented a report on the revenue budget monitoring position for the Council Fund and Housing Revenue Account (HRA) and the Capital Programme as at Month 9, prior to consideration by Cabinet.

Revenue Budget Monitoring

On the Council Fund, there had been a £1.011m reduction in the operating deficit to £0.799m, mainly due to the recovery of costs for joint care packages in Social Services.  The change in Minimum Revenue Provision (MRP) accounting policy had eliminated the in-year operating deficit and meant that net spend was projected to be £2.087m less than budgeted, leaving projected contingency reserves of £5.279m.  The projected position of each portfolio was tabled in the report, with explanation given on significant budget movements in Streetscene & Transportation and Social Services, and the realignment of budgets.  It was projected that 89% of programmed efficiencies would be achieved.  The areas of risk summarised in the report included a number which had reduced in-year.

On the HRA, in-year expenditure was projected to be £0.037m above budget leaving a closing balance of £1.061m.

The Chief Executive spoke about the positive outcome of negotiations on the Continuing Health Care fund but reminded Members that contingency reserves were one of the available sources used to balance the budget.  On the risk areas, he advised that a confidential report would be considered by Cabinet on the proposed disposal of the orphaned industrial site at Sandycroft.

Councillor Robin Guest asked about the grant funding received to upgrade recycling centres in Mold and Buckley, and was informed that this would be reflected in a later report due to the timing of that announcement.  In response to comments on the implications if the MRP accounting policy had not been changed, the Chief Executive said that the review - led by the Finance Manager (Technical Accountancy) - had recommended changes in agreement with the Treasury Management advisors.  Whilst this provided a degree of flexibility, there would still be an operating deficit.

Councillor Aaron Shotton referred to forthcoming consideration of the 2017/18 budget and said that the position would have been even more challenging without the change in MRP policy.

Councillor Paul Shotton acknowledged the work of the officer team on the MRP policy and the positive negotiations on Continuing Health Care funding which he hoped would continue.  In response to comments, the Chief Executive explained that the agreement reached with the Health Board provided a better balance of funding.  He said that whilst the domiciliary and residential care market in Flintshire was currently stable, this remained an area of risk.

Capital Programme

A breakdown of changes to the programme indicated an increase of £0.573m during the quarter, mainly due to additional grant funding from Welsh Government.  A summary of capital expenditure against the budget showed a projected outturn of £30.463m on the Council Fund, reflecting an underspend of £1.046m.  The position on the HRA was for a projected outturn of £29.671m with the £0.150m overspend to be funded by increased revenue contributions to the capital budget.  Attention was drawn to a summary of rollover amounts into 2017/18 and details of funding of approved schemes in 2016/17 which indicated the availability of £3.873m.

RESOLVED:

(a)       That the Committee approves the Revenue Budget Monitoring 2016/17 (Month 9) and confirms that there are no specific issues to be brought to the attention of the Cabinet; and

(b)       That the Committee approves the Capital Programme monitoring 2016/17 (Month 9) and confirms that there are no specific issues to be brought to the attention of the Cabinet.