Agenda item

As detailed in the recommendations.

The Finance Manager introduced the Revenue Budget Monitoring 2016/17 (Month 10) report which provided the latest revenue budget monitoring position for the Council Fund and Housing Revenue Account based on actual income and expenditure.  The report projected how the budget would stand at the close of the financial year if all things remained equal.

            The projected year end position, without any further action to reduce cost pressures or to identify new efficiencies was:

Council Fund

·         The net in year position comprised of an operating deficit of £0.705m; a decrease in the deficit of £0.095m from the position reported last month;

·         The overall projected in-year position included £2.886m due to the change in accounting policy for Minimum Revenue Provision (MRP) as agreed by County Council.  This had the effect of eliminating the operating deficit and net spend was projected to be £2.181m lower than budget; and

·         Projected contingency reserve balance of £5.333m.

Housing Revenue Account

·         Net in year expenditure forecast to be £0.037m greater than budget; and

·         Projected closing balance as at 31^st March 2017 of £1.061m.

The report covered significant budget movements; programme of efficiencies; inflation; reserves and balances; and an overview of the Housing Revenue Account. 

Work on income generation was underway and the following areas had been identified as new sources of income which were recommended for implementation:

·         Charging for street naming and numbering, which, if implemented from 1^st April 2017, could generate an additional £0.023m; and

·         Revised charging structure for Deputyship and Court of Protection services which, if implemented on 1^st April 2017 could generate £0.050m.

On un-earmarked reserves, the Finance Manager explained that due diligence on Holywell Leisure Centre Community Asset Transfer (CAT) and the setup of the new ADMs showed that a one off investment of £0.050m, which supported initial set up costs and enabled final technical support, would assure delivery of next year’s significant budget savings.

On earmarked reserves, a request had been made to create a £0.100m reserve for the Catering Service.  That would be funded by current underspends within the service and would be used for one off investment costs when the service was transferred to the Alternative Delivery Model (ADM) in the next financial year.

The report had been considered at Corporate Resources Overview and Scrutiny Committee the previous week and no issues had been raised. 

RESOLVED:

(a)       That the overall report and the projected Council Fund contingency sum as at 31^st March 2017 be noted, and the work on actions and options for mitigating action be supported;

(b)       That the projected final level of balances on the Housing Revenue Account be noted;

(c)        That the income generation proposals for street naming and numbering and Deputyship and Court of Protection services be approved;

(d)       That a contribution from the contingency reserve for £0.050m be approved to support initial set up costs and final technical support for the Community Asset Transfer (CAT) of Holywell Leisure Centre and Alternative Delivery Model (ADM); and

(e)       That an earmarked reserve of £0.100m be approved for the Catering Service which will be utilised to support investment costs for the ADM.