Agenda item

Report number CFM467 of the Cabinet Member for Finance.     (Enclosure)

The Cabinet Member for Finance introduced report CFM467.  The report provided the Committee with the detail of the Council’s outturn position for the financial year 2017/18 and covered revenue and capital expenditure for the General Fund and the Housing Revenue Account.

The Governance and Audit Committee had approved the Revenue and Capital Outturn report and associated appendices for 2017/18 together with set-asides and reserves and had also approved the Capital slippages from the 2017/18 Capital Programme at their meeting on 21 June 2018.

Quarter 3 was reported to the Committee on 14 February 2018 with a forecast variance on the net budget requirement of £612K.  The final outturn position had improved with additional income being earned through investment of increased cash balances, increased business rates income received as a result of upward revaluation and additional business rates pooling gain arising from the 60% (after the levy) retention of the local growth above the baseline level.  An increase in central support costs of £340K was charged to the Housing Revenue Account (HRA) following in-year increase in support service costs together with a number of grants that were received late in the financial year.

Members then questioned the information before them and the following questions/comments were made:

·                     A question was asked about the Leisure Centres and what needed addressing – it was confirmed that there had been issues across all leisure centres, although mostly with regard to maintenance.  A detailed breakdown would be circulated to Committee members.

·                     A question was asked about overspend in relation to communications and was this staff based – the Chairman stated that any staffing issues should be directed to the Chief Executive, the Member stated that if this was in relation to external consultancy it was different to staffing.  The Cabinet Member for Growth and Communications stated that there were a number of different projects being implemented under Communications with different elements to achieve the Councils objectives and additional staff had been required to carry out the work.

·                     A further comment was made about the one off costs in relation to the corporate management structure was this in relation to redundancy, the Member was referred to the Statement of Accounts but it was stated that the detail was confidential.

·                     A comment was made about the variance information contained within the report in relation to Leisure Centres and the information in the appendices – the figures were different.  An explanation was given about the difference and what cost were included and the Member who raised the issue asked if the public would understand this.

Whilst going through the outturn report Members referenced the number of changes made to the budget, they appreciated that budgets changed over the course of a year but felt that there were too many variances and the Council needed to get better at budgeting.  It was stressed that the Committees role was to scrutinise the issues before them and to monitor variances and raise any concerns that they had.  The Chairman thanked the Strategic Director Resources and her team for the work that they carried out in relation to the budget and the format that it had been presented in, which was readable and understandable.

Reference was made to Disabled Facilities Grants, although Members appreciated that this was grant based and reliant on Occupational Therapists recommendations it was felt that the issue should be kept under review.

> Action Note

Disabled Facilities Grants to be included on the work programme to be kept under review.

The issue of markets was discussed and how they could be reinvigorated especially as the climate for buying food had changed.   Members felt that the Cabinet Member for Retail and Visitor Economy whose remit covered markets should look into the rental charges especially in respect of Grantham market.  Some Members asked whether investing in markets made financial sense considering the number of factors which affected markets particularly the Grantham market and the possibility of the two outlet villages on the outskirts of Grantham and how this could affect the town.  Other issues which affected the market were having the necessary facilities such as running water and public conveniences.    The Cabinet Member for Communities, Health, Wellbeing and Skills indicated that as part of the cinema project the bike shed and facilities would be moved to the conduit area.  It was suggested that the Head of Town Centres be invited to the meeting to provide a summary of what was happening with the markets.

> Action Note

That the Head of Town Centres be invited to the next meeting of the Committee to give a summary of what is happening with the markets.

Members then commented on issues that affected the HRA. The Chairman referred to the variance concerning re-wiring and fire alarms and accessibility to tenant’s properties especially in light of the Grenfell Tower fire. The Assistant Director Housing indicated that this issue had been picked up as part of the 2018/19 programme with regard to accessibility to properties and there was legislation that could be used to gain access.  It was questioned whether it was the same occupants each time and it was requested that an update be given to the next meeting.

> Action Note

That an update on house fire alarms, re-wiring and accessibility be given to the next meeting of the committee.

Reference was made to the outstanding loan with regard to the HRA and reserves and how this would be dealt with, the Cabinet Member for Finance stated that options were being looked at with regard to this loan but nothing had yet been agreed.

> Action Note

The Committee to be kept informed of the options around the repayment of the HRA Loan.

Clarity on the retention of business rates was discussed and the Assistant Director Resources confirmed that during 2018/19 the Council is part of a one year pilot but confirmation was awaited about whether this would continue into 2019/20.

A Member felt that a key document was missing, the headcount report, this had been circulated when he had been Chairman of Resources and it was felt that this information should be circulated to the Committee.  Members felt that this should once again be circulated.

> Action Note

That the headcount report should be circulated to the Growth Overview and Scrutiny Committee going forward.

The Committee had reviewed the revenue and capital outturn report 2017/18 together with the associated appendices but required more information on the points discussed and referenced in the action points.  It was noted that it had been a year of change with exceptional reasons for budget variances but going forward a better focus on budgeting was required.