Issue - meetings

Report of the Head of Financial Services

Resolved that:

1. The contents of the report including the key projected variances to the original 2010/11 budget which have enabled the council to deliver a balanced revised budget be noted
2. The intention to recommend to Council as part of the budget proposals for 2011/12 to transfer the interest due from its Icelandic deposits (as detailed in paragraphs 3.6 to 3.8) to the Interest Equalisation Reserve to offset any future impairment’s that may arise on these deposits be noted.

The Head of Financial Services introduced the report. The report updated Members on the council’s current financial position for 2010/11 based on the monitoring exercise at the end of November 2010. The report covers the council’s revenue, capital, treasury management and the housing revenue account. The report identifies any known significant variations (minimum £10,000) to the 2010/11 original budget and provides a position statement on major schemes.

The previous budget monitoring report to the end of August 2010 had projected an overspend for the year of £800,000.  The Cabinet and the Senior Leadership Team had instigated an immediate recruitment freeze and a rigorous approach to recruitment requests together with a reduced spend on supplies and services.  It was therefore pleasing to report that these measures had enabled the council to address the in year budget deficit.

Since the report had been written, there had been severe weather and it was predicted that car park income would fall by about £50 to £70,000 as a result. It was unlikely that this would be recovered as the weather improved.

The Cabinet Member Finance congratulated everybody on

reducing the deficit to zero and the Leader acknowledged the support from staff particularly in coping with the recruitment freeze.

Resolved that:

1. The contents of the report including the key projected variances to the original 2010/11 budget which have enabled the council to deliver a balanced revised budget be noted
2. The intention to recommend to Council as part of the budget proposals for 2011/12 to transfer the interest due from its Icelandic deposits (as detailed in paragraphs 3.6 to 3.8) to the Interest Equalisation Reserve to offset any future impairment’s that may arise on these deposits be noted.