Revenue Budget Monitoring 2020/21 (Month 4)
As detailed in the recommendations, with the additional resolution below:
(5) That the claims for car parking income loss for Quarter two and Quarter three be pursued with Welsh Government.
Councillor Banks introduced the report which provided details of the known risks and issues for 2020/21 for the Council Fund and Housing Revenue Account.
The position was based on actual income and expenditure as at Month 4, and projected forward to year-end.
Potential risks and cost pressures ranged between £2.8M and £5.4M (excluding the impact of the pay award). The projected year end position, without new actions to reduce cost pressures and/or improve the financial return on efficiency planning and cost control was:
· An operating deficit of £0.983M (excluding the impact of the pay award which would be met by reserves)
· A projected contingency reserve balance as at 31st March 2021 of £1.418M
Housing Revenue Account
· Net in-year revenue expenditure forecast to be £0.295M lower than budget
· A projected closing balance as at 31st March 2021 of £2.468
The Corporate Finance Manager provided full details on the projected position by portfolio; major variances; open risks; emergency funding; achievement of planned in-year efficiencies; and reserves and balances.
A budget virement was recommended to address changes in service delivery within Social Services, for the amount of £0.300M to be transferred within Adults Services from the Localities budget, within the Older People Service, to Resources and Regulated Services (also within the Older People Service). Both budget headings encompassed care delivery services for older people such as residential care and home care. However, one budget was for care commissioned from independent care providers whereas the other budget was for care provision delivered directly by the Council. Over time the in-house provision of care had increased in complexity whereas the commissioned care had decreased.
It was also recommended that an amount of £0.134M be allocated from the Contingency Reserve for Social Services for known pressures in 2020/21. The funding would bring additional capacity to business support arrangements and compliance with safeguarding requirements within Children’s Services.
A discussion took place on car park charges and the Corporate Finance Manager explained that WG had advised that where a Council had taken the decision to cease car parking changes, which was a recommendation in a report for consideration at this meeting, they would not reimburse costs from Quarter two. The net car parking income loss was £0.550M. Members discussed the fact that the loss was not just because charges were being ceased, but that less people were visiting town centres at the moment. It was agreed that the claims for Quarters two and three would be pursued with WG.
(a) That the overall report and the projected Council Fund contingency sum as at 31st March 2021 be noted;
(b) That the projected final level of balances on the Housing Revenue Account (HRA) be noted;
(c) That a budget virement of £0.300M between Older People’s Purchasing budget (Localities) and the Older People provider budget (Resources and Regulated Services) be approved;
(d) That an allocation of £0.134M from the Contingency Reserve for the resourcing of the Children’s Services ‘Front Door Pressures’ within Social Services be approved; and
(e) That the claims for car parking income loss for Quarter two and Quarter three be pursued with Welsh Government.
- Revenue Budget Monitoring 2020/21 (Month 4), item 9. PDF 133 KB
- Enc. 1 for Revenue Budget Monitoring 2020/21 (Month 4), item 9. PDF 159 KB
- Enc. 2 for Revenue Budget Monitoring 2020/21 (Month 4), item 9. PDF 83 KB
- Enc. 3 for Revenue Budget Monitoring 2020/21 (Month 4), item 9. PDF 46 KB
- Enc. 4 for Revenue Budget Monitoring 2020/21 (Month 4), item 9. PDF 64 KB