Agenda item

            That the report be noted.          

Revenue Budget Monitoring 2012/13 (Month 9)

            The Head of Finance introduced a report to provide Members with the most up to date Revenue Budget Monitoring information (Month 9) for the Council Fund and Housing Revenue Account (HRA) in 2012/13 which was being submitted to Cabinet on 19 March 2013. 

            The projected year end underspend of £0.856m on the Council Fund was an increase in the underspend reported at Month 8.  Appendix 1 showed a summary of movement from Month 8 and reported that the majority of changes were in Community Services.  Two requests for carry forward were being recommended to Cabinet for Legal & Democratic Services and ICT & Customer Services.  Appendix 7 provided details on the movements of unearmarked reserves to leave a projected level of Contingency Reserve at 31 March 2013 as £0.445m.  The Head of Finance explained that this amount was in addition to the Base Level of reserves of £5.564m and the amount of £0.770m approved by Cabinet on 19 February 2013 for the impact of the provision for Mutual Municipal Insurance scheme of arrangement.  An underspend of £0.471m on the HRA was also reported but there were delegated powers arrangements in place for it to be spent on investment in the housing stock. 

            Councillor P.G. Heesom referred to the two entries in appendix 7 for approvals made in 2011/12 and asked whether these had now been dispensed with.  In response the Head of Finance said that the £1.500m referred to in appendix 7 had been ringfenced at the end of the last financial year and had been the subject of a report to Cabinet in January 2013 which identified allocations to a number of Invest to Save projects.  Councillor Heesom highlighted the risk of planning decisions which were the subject of appeal which were reported as being costs for the appeal in relation to the Croes Atti site.  He said that he had been advised that the costs were £0.040m and not £0.020m as reported and were due to the Council’s failure to determine the application.  He also paid tribute to the work of the Head of Housing and the commitment that had been given following the result of the housing transfer ballot.

            Councillor A. Woolley queried whether any of the underspend on the Council Fund could be used to reinstate the swimming subsidy of £0.023m in 2013/14.  The Leader of the Council explained that an element of the budget underspend had already been included in the figures to achieve a balanced budget for 2013/14.  The Head of Finance advised that of the unearmarked reserves, £0.297m had been approved by Council on 1 March 2013 for funding of one-off costs in the 2013/14 budget proposals and said that it was important to reiterate the difference between one-off costs and recurring costs such as the swimming subsidy.  In response to a question from Councillor M. Bateman on whether the amount set aside for Single Status was adequate, the Chief Executive felt that the reserve was sufficient to pay the one-off costs currently costed. 

            Councillor P. Shotton welcomed the recent review of the changes on the ‘bedroom tax’ to exclude foster carers and those serving in the Armed Forces and asked whether the ‘bedroom tax’ was having an effect on homelessness.  The Head of Finance explained that it was not yet in place but coming into effect from 1 April but would be monitored in the HRA.  In response to a question from Councillor G.H. Bateman on the problems with the performance of the gas engines at the landfill sites, the Chief Executive explained that the amount of £0.145m would remain static and that an amount was included in the budget to meet it year on year.

            Capital Programme 2012/13 (Quarter 3)

                        The Head of Finance introduced the report to provide Members with the latest Capital Programme information for 2012/13 which would be submitted to Cabinet on 19 March 2013. 

                        The table set out how the programme had changed during 2012/13 for both the Council Fund and Housing Revenue Account (HRA).  Detailed cumulative information relating to each programme area was provided in Appendix A and summarised in the table on page 108.  Rollover requests from 2012/13 to 2013/14 of £3.657m were being recommended to Cabinet.  Detailed discussions had taken place with Directorates to ensure that the projects were contractually committed as agreed by Cabinet, following input from Overview & Scrutiny on Capital Programme Management; Appendix C provided further detail.  The financing resources were summarised in the report along with the Council Fund Capital Receipts (cumulative) actual against estimate.  The Head of Finance reminded Members that all of the information in this report had been factored into the starting position for the Capital Programme agreed at County Council on 1 March 2013. 

                        Councillor P.G. Heesom raised concern about the allocation of £0.025m for Clwyd Theatr Cymru and asked how this could be justified.  The Head of Finance responded that it was an allocation within the capital programme for a building which had to be maintained by Flintshire County Council as it was in the ownership of the Council.  It was a small allocation for essential works and was not for investment in major capital expenditure.  She added that it was possible to capitalise revenue expenditure but the amount in question would not meet the test for prudential borrowing.  The Chief Executive explained that 60% of the core revenue funding for the Theatr was provided by the Arts Council and 40% by Flintshire County Council.  

            RESOLVED:

            That the report be noted.