Agenda item

That the reports be noted.         

The Corporate Finance Manager introduced a report to provide Members with the revenue budget monitoring 2013/14 (Month 4) information for the Council Fund and Housing Revenue Account (HRA) which was being submitted to Cabinet on 15 October 2013.  

For the Council Fund, the projected net in-year expenditure was reported to be £1.247m less than the budget which was a decrease of £0.818m on the £2.065m reported at Month 3 as reflected in the table at paragraph 3.01. 

The main reasons for the changes related to two main areas being a significant reduction in the projected outturn for Out of County Placements of over £0.600m and the inclusion of estimated costs of £0.400m in relation to securing and managing the site and its contents at the former chemical plant site in Sandycroft. 

The programme of efficiencies were detailed in paragraph 3.05 which currently indicated that £4.469m of the £5.331m included in the budget (83.8%) would be achieved, resulting in a net under-achievement of £0.862m; full details were provided in appendix 9.      

Paragraph 4 detailed the amounts for pay inflation and non standard price inflation which had not changed from Month 3 and the risks and assumptions were identified in section 5.00. 

The current position of unearmarked reserves was detailed in paragraphs 6.01 and 6.02 where it was reported that after taking account of an allocation for £0.518m for recovery costs following the March 2013 severe weather, and taking account of the impact of the projected in year budget position, the current projected level of the contingency reserve at the end of March 2014 was £3.888m.          

The Corporate Finance Manager also advised of a projected overspend of £0.260m on the HRA which was an increase of £0.217m on the £0.043m overspend reported at Month 3.  The projected closing balance at Month 4 of £1.174m was 4.1% of total expenditure and satisfied the prudent approach of ensuring a minimum level of 3%.  Appendix 7 detailed the reasons for significant variances occurring to date and the actions planned to deal with them. 

In response to a query from Councillor Clive Carver, the Corporate Finance Manager said that the figure of £0.862m included some elements that might be achievable in subsequent years and some that may not be achievable.  However, it was important to note that the amount of £0.862m had already been assumed in the projected figures. 

Councillor Arnold Woolley asked whether there were any predictions on trends for Out of County Placements.  The Corporate Finance Manager said that trends were analysed as part of the forecasting but that the main reason for the increase was due to new placements and extensions to existing placements.  The situation was being monitored and would be reported monthly to Cabinet and this Committee. 

The Leader of the Council said that it was a national trend of increases in the use of Out of County Placements but assured Members that the situation was being closely monitored. 

He also provided a verbal update following the announcement by Jane Hutt, the Minister for Finance on the budget provision for Flintshire County Council for 2014/15.  The funding formula used for all 22 Councils in Wales had resulted in a reduction of approximately a four percent cut which added £7m to the already identified budget gap resulting in a total deficit of approximately £16m for 2014/15.  The cuts were being felt by all Councils in Wales and work was needed to increase the pace of change for the authority.  It had been indicated that the cut for the year 2015/16 would be around 1.6% which was positive news.  The Leader explained that the Medium Term Financial Plan (MTFP) was being submitted to the next meeting of Cabinet and that this Committee would play an important role in the MTFP for the forthcoming budget process.  He spoke of some of the choices which would have to be considered onservice ownership and delivery and commented on the decisions to be discussed on efficiencies and value for money.  There were difficult times ahead which would result in reductions in the workforce including management positions. 

Councillor Haydn Bateman referred to the drop in income projections for five a side pitches of £0.015m and also commented on the increased overspend on locums in Legal & Democratic Services.  In response, the Corporate Finance Manager said that he would obtain further information on these issues and advise Councillor Bateman accordingly.  Following a further question from Councillor Bateman about the efficiency for Waste Services reported on page 49, the Corporate Finance Manager confirmed that the efficiency of £0.050m had been achieved and that new transport arrangements were in place.  Councillor Nancy Matthews explained that bigger vehicles were being used which would result in a reduction in the number of vehicles needed and would therefore reduce costs. 

In response to a question from Councillor Matthews, the Leader of the Council said that collaborative projects were being considered due to the forthcoming changes to budgets.  The Cabinet Member for Corporate Management concurred with the comments of the Leader about the seriousness of the budget cuts and said that all aspects of service delivery would need to be considered and that some difficult decisions would have to be made. 

Councillor Carolyn Thomas sought assurance that a good standard of service would still be achieved.  She also referred to schools that were experiencing difficulties in undertaking repairs and maintenance and queried whether some of the budget could be devolved to the schools for the work to be undertaken.  Councillor Thomas also raised concern about the reduction of £0.025m in expenditure in Early Entitlement as reported in appendix 4.  In response, the Leader of the Council said that the points raised by Councillor Thomas were valid but that difficult choices would have to be made across all service areas. 

Councillor Paul Shotton referred to the costs incurred by the Council for the site at Sandycroft and asked whether a condition could be included in licences for similar sites for future applications could include a form of insurance to prevent the Council having to cover the cost in the future.  The Leader of the Council said there was a need to identify who should meet the costs in this situation and added that a number of discussions were ongoing.                     

Capital Programme 2013/14 (Month 4)

            The Corporate Finance Manager introduced a report to provide Members with the Month 4 (end of July) capital programme information for 2013/14 which would also be submitted to Cabinet on 15 October 2013.   

            He explained that the table at paragraph 3.01.1 set out how the programme had changed during 2013/14 with the revised figure being £33.779m for Council Fund and £12.126m for HRA.  The rollover from 2012/13 and the 20% holdback were reported along with changes during the period which included an increase/decrease in grant funding from Welsh Government and alteration of some funding profiles from external sources. 

Details of the variances for individual programme areas were listed in appendix B and how the capital programme was financed was reflected in the table at paragraph 3.06.1. 

The Corporate Finance Manager explained that at the 1 March 2013 budget meeting, it had been agreed to hold back 20% of core programme funding in the light of the continuing uncertainty over the timing of receipts.  In view of the latest forecasts for capital receipts it was being recommended to Cabinet that the 20% should continue to be held back at this stage to keep the programme within the limits of anticipated receipts.  This situation would be closely monitored and would be reported in future monitoring reports and would also become part of the capital programme considerations for 2014/15. 

            Councillor Carolyn Thomas referred to page 77 and the funding for Hawarden Infants/Juniors amalgamation which had now been reprofiled to 2014/15 and asked for further information on the project.  The Corporate Finance Manager confirmed that he could provide further details following the meeting.  Councillor Haydn Bateman commented on the changes in the capital programme during this period and the Corporate Finance Manager advised that the Mold Flood Alleviation Scheme and ERDF funded Town Centre Regeneration schemes had both been reprofiled to 2014/15.  Councillor Bateman also asked for further information on the funding for Travellers’ Sites referred to in appendix A.  The Corporate Finance Manager advised that the budget had been amended to reflect reduced grant funding as referred to in appendix B

            Councillor Ron Hampson asked for an update on the progress made on realising assets owned by the Council.  The Leader of the Council said that there was a need to look at assets and that regular updates were provided to the Committee. 

RESOLVED:

That the reports be noted.