Agenda item

Report number HOF208 by the Head of Finance.                          (Enclosure)

Report number HOF208 by the Head of Finance summarised actual spend against the budget and the forecast outturn position as at 31 August 2012.

An underspend of £331k was currently forecast against the general fund revenue account. Key variances included the Olympic festival and torch relay events, which were identified as part of the outturn and funded through the priority reserve. Market rights had been renegotiated in respect of Grantham market which resulted in an annual saving of £5,000 for the next three years. Ticket sales at the Guildhall Arts Centre were also forecast to be greater than the budgeted level.

The organisation had a workforce efficiency target of 3%, which was expected to be achieved through staff turnover. The arts centres had no vacancies and were not forecasting to achieve this target. However, this should be offset by other service areas exceeding the target. Savings had been achieved at senior manager level through salary sharing arrangements with other authorities.

Grantham market was showing an overall reduction, which was attributed to adverse weather in the first quarter and disruption as a result of the Westgate improvement works. It was anticipated that trading levels would return following the completion of the work.

Development and Growth and land charges both forecast an increase in income, while building control income was lower than the budgeted level. Work was underway to stabilise this level by increasing charges.

The CCTV service was exploring operational changes to reduce costs (without reducing the level of services); it was possible this project would not be completed in-year.

Income for the green waste scheme was higher than budgeted, however recycling credits reduced by 7.7% due to tonnages being down against the budgeted level and an increase in the contamination rate.

Councillors asked whether some of the savings made within waste and recycling could be used to supplement grounds maintenance provision. Several members reported an increase in the number of weeds, together with overgrowing trees and verges. It was suggested that the issue be referred to the Scrutiny Committee for their consideration and onward recommendation to Lincolnshire County Council.

Action point

The issue of over-grown weeds in pavements and grounds maintenance issues relating to overgrown trees and grass verges be referred to the Scrutiny Committee for its consideration.

The variance to the forecast position of the Housing Revenue Account was modest; there were no material changes. The overall efficiency target was forecast to be met and the void rate of 1.3% was within the budgeted level (1.5%).

Some slippage had been experienced in the delivery of the capital programme. Financing for the station approach and business incubation centre projects would roll into 2013/14. The full budget for the shop front scheme was projected to be spent. Bourne Community Access Point was due to be operational by March 2013 and the Bourne Core Area project was advancing with the first phase being completed by January 2013.

The HRA Capital programme experienced variances in respect of refurbishment works and a helpline software system upgrade which was not required following the transfer of the call centre to City of Lincoln Council.

The headcount showed a variance of 18.5 below the budgeted level of 626.1.

Action Point

The Head of Finance to circulate an explanation for the variance in staffing levels for Community Safety and Licensing, which exceeded budgeted levels.