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 6) information for the Council Fund and Housing Revenue Account (HRA) which was being submitted to Cabinet on 17 December 2013.  

For the Council Fund, the projected net in-year expenditure was reported to be £1.012m less than the budget which was a decrease of £0.062m on the £1.074m reported at Month 5 as reflected in the table at paragraph 3.01. 

The main reasons for the changes related to two main areas, a reduction in the projected underspend of £0.171m in Community Services, although this was off set by by an improved position of £0.124m within Corporate Services.

Progress of the programme of efficiencies were detailed in paragraph 3.04 which currently indicated that £4.506m of the £5.331m included in the budget (84.5%) would be achieved, resulting in a net under-achievement of £0.825m; 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 5 and the risks and assumptions were identified in section 5.00.  These included the increasing costs in relation to Out of County Placements,, costs associated with the former chemical plant in Sandycroft (Euticals Ltd) and also the risks associated with any periods of severe weather which would impact on the Winter Maintenance reserve.

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 £3.653m.   

The Corporate Finance Manager also advised of a projected underspend of £0.062m on the HRA which was an increase on the underspend of £0.014m reported at Month 5.  The projected closing balance at Month 6 of £1.495m was 5.2% of the total expenditure and satisfied the prudent approach of ensuring a minimum level of 3%.  Appendix 8 detailed the reasons for significant variances occurring to date and the actions planned to deal with them.    

In response to a query from Councillor Haydn Bateman about the lower than anticipated levels of income for Fixed Penalty Notices for Highways Development Control & Regulatory Services, the Corporate Finance Manager advised that he would provide a written response. 

Councillor Bateman also asked about the variance of £0.276m in Repairs and Maintenance and its cause.  The Corporate Finance Manager said that the increase in costs was to do with an increase in the number of jobs undertaken so there was an overspend on materials but that work was ongoing to try and mitigate some of the overspend in the second half of the financial year.  The Head of Finance said that the HRA was still anticipated to come in on target so overall, it was a good news story.  The Leader of the Council said that the ‘action required’ section of the appendix indicated that discussions were underway and indicated that an update would be provided at the appropriate time. 

Councillor Marion Bateman asked if all of the work had been completed at the Former Euticals Ltd site in Sandycroft.  In response, the Chief Executive said that it was an ongoing risk but that the costs had been reduced.  The asset had been gifted to the Council by the Crown Estates and the transfer of this was nearing completion. 

On the issue of rents referred to and the reviewing of the bad debt provision based on the quarter 1 impact of the under occupation, known as  “bedroom tax”, Councillor Robin Guest said that the figure appeared to have lessened and queried whether this was as a result of the impact not being as severe as originally anticipated.  The Corporate Finance Manager confirmed that it had been revised due to the reduced impact in quarter one but that it would be reviewed again after quarter two. 

Councillor Arnold Woolley referred to the projected overspend for Early Onset Dementia due to purchased domiciliary care costs and suggested that the overspend would increase over time.  He asked if plans were being put in place for the future in terms of an increasing population and the need for more care and expenditure.  He also highlighted the variance for Transition and Disability Services which was mostly due to an overspend against staff pay costs of £0.055m due to an under provision of budget and the variance of £0.053m in Administrative Support (Disability Services) which was mostly due to an overspend against staff pay costs.  In response, the Chief Executive gave a general assurance and said that it was a demand led service and even though the demand had not changed, more cases had now been met.  He said that the area needed to be looked at nationally but that the needs would be tracked and funded accordingly.  He said that the need was being met but highlighted the transition from child to adult. 

Capital Programme 2013/14 (Month 6)

            The Corporate Finance Manager introduced a report to provide Members with the Month 6 (end of September) capital programme information for 2013/14 which would also be submitted to Cabinet on 17 December 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 £33.614m for Council Fund and £12.126m for HRA.  The details of the changes during 2013/14 were reported 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 inappendix B and details as to how the capital programme was financed was reflected in the table at 3.05.01.    Cabinet had approved rollover of £1.432m into the 2014/15 budget as part of the Month 4 report.  A further rollover into 2014/15 of £2.249m had been identified at this stage which reflected reviewed spending plans across all programme areas.  Details of the latest position in relation to capital receipts was summarised in the report and the the continuation of holding back 20% of core programme funding in the light of the continuing uncertainty over the timing of receipts was being recommended to Cabinet.  The 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 Marion Bateman gave thanks to the Corporate Finance Manager for the explanation that they had provided to her on the added years pressures.  

RESOLVED:

That the reports be noted.