Agenda item

                                                                                                                  (Enclosure)

The Cabinet Member for Finance submitted report CFM462 which provided the Committee with a summary of the year to date position against the original budget for 2018/19.  The report covered revenue and capital expenditure for both the General Fund and the Housing Revenue Account.

In order to ensure effective budget management it was important that the Committee are updated with budget monitoring information and that they are kept informed of the financial position following the balanced budget set by Council at the start of the financial year.

The report covered the financial position to the 30 June 2018 and focussed on emerging issues and identified action that was being undertaken to manage these issues.

A number of savings had been undertaken, however only £579K of the budgeted £2.494M had been achieved with regard to savings, efficiencies and income generation and alternative plans were being explored.  The Committee would be provided with more details at their next meeting when a forecast position would be presented. Currently the HRA had a small overspend.

Each appendix to the report was then discussed by the Committee.

Appendix A – a comment was made about looking at new investment opportunities in order to increase investment income.  The Assistant Director Resources provided clarification that the income described as “Interest and Investment Income” is the income generated through the treasury management of the council’s cash balances.  The investment income from Commercial Property investments was within the net cost of services, and it was this income that the £28K variance highlighted within Appendix B related to.

Appendix B – Bourne Core Area, particularly the vacant units on Wherry’s Lane was discussed especially as these had now been vacant for a considerable period of time.  It was requested that an update on the units and retail interest in them should be given at the next meeting.

>Action Note

That an update on the retail units at Wherry’s Lane, Bourne and any interest in them be given at the next meeting.

Appendix B – Variances on parking income and additional parking capacity. Members discussed these issues in light that the tariffs were not set to increase.  The extra capacity was in relation to a Stamford car park. 

A Member asked that in order to make informed decisions a projected forecast outturn was needed. Members were told that this would be available for the next meeting of the Committee.  A Member asked about the new measures that had been previously discussed for car parks in the budget in relation to barriers, enforcement etc and whether these were in place yet.

The staffing variance of £17K was discussed.  A Member repeated his request that the Headcount report be circulated.  The Strategic Director Resources provided the Committee with assurance that the monitoring of staffing budgets was part of the budget management process that budget managers are expected to undertake.

A Member commented on the self-financing enforcement team which had been promised and he wanted to know what progress had been made. It was pointed out that the Committee were there to discuss the progress on the financial performance to date.  At the next meeting the forecast report would be circulated and it should be reported then about any issues.

Reference was made to the homelessness variance as there had been an increase in homelessness which the authority had a statutory duty to undertake. It was hoped that there would be government grant funding available to help address this variance. 

>Action Note

An update to be given on homelessness to the next meeting.

A comment was also made about the large corporate variance shown and it was noted that work was currently on going to help address this.  A question was asked about minor variances and it was confirmed that a minor variance was classed as £15K or below.

Appendices C, D, E and F were discussed the only comment being made about the vacancy for the HRA Business Manager which had now been filled, the applicant will commence employment at the end of August.

Appendix G covered the General Fund Capital Programme variance analysis and a question was asked about the St Peter’s Hill development to which the Cabinet Member responsible replied.

Car parks were once again discussed in relation to the lack of budget used in the first three months.  It was confirmed that no work had been planned for the first three months in relation to the ticket machines and barriers, hence there was no expenditure.

Appendix H which concerned the HRA Capital Programme variance analysis was briefly discussed and the lack of work in some areas in the first three months.  It was stressed that work was on going with regard to specifications and frameworks and that expenditure would be shown in the next report.

A question was asked about where performance was monitored and it was stated that work was currently being done through CMT in relation to performance indicators and the new Corporate Strategy.  The performance report went to Cabinet but it was suggested that it also came to Growth O/S Committee.

Recommendation

That following a review of the figures contained in report CFM462 further information on the following topics is required as also contained in the action points above:

·         Update on the retail units at Wherry’s Lane, Bourne

·         Update on homelessness

·         The forecast budget outturn to be circulated at the next meeting

·         Car parking update

·         A copy of the Headcount to be circulated

·         Performance monitoring to be produced for this committee

The Committee notes that Officers continue to identify actions and take measures to effectively manage the overall budget and reduce the impact of any adverse projected pressures that may result in overspends.