Agenda item

That the content of the reports be noted.

The Corporate Finance Manager introduced a report to provide Members with Revenue Budget Monitoring 2013/14 (Month 7) information for the Council Fund and Housing Revenue Account (HRA).  The report was due for submission to Cabinet on 21 January 2014 and would be on the same agenda as the initial budget proposals for 2014/15.  Therefore it was important to reflect the most accurate position possible, due to the direct link with the level of contingency reserve available which would form a key part of the budget strategy for 2014/15.  Due to this, it was reported that detailed work was being undertaken to confirm the timing and achievement of all efficiencies, particularly some of the large more complex areas such as the Customer workstream.

For the Council Fund, the projected net in-year expenditure was reported to be £944K less than the budget, which was a decrease of £68K from that reported at Month 6.  Explanation was given on the main reasons for variances from Month 6, together with actions, as outlined in the report.

On the Programme of Efficiencies, it was projected that £4.506m of the £5.331m included in the budget had either already been achieved or was expected to do so by the end of the financial year.

The position on pay inflation and non-standard price inflation remained unchanged from Month 6.  An update on unearmarked reserves reported that an estimated £3.585m was likely to be available at the end of the financial year.

For the HRA, there was a projected underspend of £117K which would mean a closing balance of £1.551m, which at 5.4% of total expenditure was above the recommended level.

On the Council Fund, Councillor Haydn Bateman asked about the increased internal interest costs and reduction in debt management costs under the Central Loans and Investment Account.  The Head of Finance explained that this section dealt with all debt and treasury management undertaken across the Council and that the position remained unchanged from that reported at Month 6.  She said that further detail was available from the Finance Manager - Technical Accountancy and that the accounting part of treasury management activity (as considered by the Audit Committee, Cabinet and County Council) could be incorporated in the training session scheduled for 27 January 2014, to which all Members were invited.  She would ask the Finance Manager - Technical Accountancy to refer to Councillor Bateman’s question in a meeting which was being arranged to address previous questions raised.

Councillor Richard Lloyd referred to the potential costs relating to the former chemical plant in Sandycroft and asked for further clarification.  The Corporate Finance Manager said that the update included in the report advised of projected costs of £400K for the current financial year.  The Head of Finance was aware that the site had been made safe and that discussions were being finalised on its future.  She agreed to seek an update from the Head of Legal & Democratic Services to share with Members.

In response to a query from Councillor Clive Carver, the Corporate Finance Manager explained that Denbighshire Council was now the lead Authority for the Coroners service and that the in-year costs were due to outstanding invoices which had been received late from Wrexham as the lead authority.

RESOLVED:

That the content of the reports be noted.