Issue - meetings

Report of the Cabinet Member Finance

RESOLVED THAT:

1.    the contents of this report be noted, including the key projected variances to the 2018/19 budget and the expected delivery of services within budget.

The Cabinet Member Finance introduced the report, she explained that the report provided Members with an update on the Council’s current financial position for the financial year 2019/20. 

She highlighted that the key revenue variances related to Ubico, waste and recycling, salary variances, car parking and planning as shown in table 2.1 of the report.  This amounted to a  predicted overspend of £7k.

The main reasons for the variances were as follows:

·           Ubico were currently forecasting an underspend of £265k. This was due to a £50K saving on the staff budget for grounds maintenance and £215k from a delay in the procurement of vehicles scheduled for replacement in 2019/20.  This was simply as a result of the timing of the vehicle purchases and would not be continued into 2020/21.

·           For the Waste and Recycling area, there was a £305k overspend and the majority of this was a savings target of £200k which was anticipated through service redesigns, efficiencies and investment in new vehicles. She highlighted that any savings from service delivery changes and efficiencies had been offset by the introduction of an additional refuse round in June 2019.The remaining overspend was due to an anticipated £60k shortfall in recycling credits income due to lower than budgeted tonnages of recycling material collected and an anticipated overspend of £50k on the disposal cost of recycled wood. This was due to higher than budgeted volumes of wood and a delay in the procurement of a new disposal contractor.

·           There would be an estimated £120k income surplus for car parking in 2019/20.  However,  as a result of additional staffing costs being incurred and increased pay by phone and card charges, the total estimated surplus for car parking for 2019/20 was £60k.

·           There would be a reduction in the Planning income received in 2019/20 as there had been a reduction in applications.

She further advised that the revenue account is currently showing a net surplus of 72K and the HRA capital expenditures is in line with the current approved budget. Similarly, the collection of council tax and business rates income as at the end of September 2019, the projected outturn for 2019/20  and the outstanding sundry debt  were all in line with the norm for this time of the year.

RESOLVED THAT:

1. The contents of this report be noted, including the key projected variances to the 2018/19 budget and the expected delivery of services within budget.