Issue - meetings

Report of the Cabinet Member Finance

RESOLVED THAT:

1.    Cabinet note the contents of this report including the key projected variances to the 2019/20 budget and the expected delivery of services within budget;

2.    Council be recommended to approve the budget virements to the 2019/20 budget, as part of the revised budget 2019/20, as detailed in Appendix 4.

The Cabinet Member Finance presented the report, which provides the third monitoring position statement for the financial year 2019/20. She explained that the purpose of the report was to notify members of any known significant variations to budgets for 2019/20 and highlight key issues.

Looking at the net revenue position, the table at 2.1 summarises the net impact of the variances identified at this stage in the financial year, projecting the position to the end of the financial year for all budget variances in excess of £50,000 and areas with volatile income trends, details of which you can see in paragraphs 2.3 to 3.1.

She reported that Treasury Management borrowing costs are in line with the revised budget. This includes short term (temporary borrowing), long term and brokerage costs. Based on performance so far as of December 31^st, investments are forecast to come in on budget, and there are no significant variances against any current capital programmes or projects.

A detailed exercise has been carried out to ensure that programme maintenance work is being delivered as planned within the allocated budgets. Some programme maintenance expenditure is not expected to be utilised in the current year and will be transferred back into the Property Maintenance reserve. However, there is a requirement for additional budget to meet higher than expected reactive repairs in the year, which will be funded from this reserve. Any slippages in schemes or underspend against budget at the end of the year will be transferred to the Programme Maintenance reserve to fund future programme maintenance expenditure.

Significant variations to HRA revenue and capital budgets identified to 31st December 2019 are detailed in parts 6.1 to 6.3., while Council Tax and Business Rates income is shown at Appendix 2. The continued impact of changes in government funding arrangements and the economic climate present particular concerns for the council. It is important to ensure that budgets continue to be closely monitored over the coming months, with a view to taking action at a future date if necessary in order to ensure that the council delivers services within budget.

It will be for Cabinet and Council to decide how to apply any potential savings in June this year, when the financial outturn is finalised. However it is recommended that any underspend identified on outturn be transferred firstly to the Budget Deficit (Support) Reserve and secondly to support general balances, bearing in mind the need to keep the level of reserves robust and the uncertainty surrounding future budget funding gaps, as outlined in the Medium Term Financial Strategy.

The Leader clarified that Cabinet is noting the report and recommending it to Council.

RESOLVED THAT:

1. Cabinet note the contents of this report including the key projected variances to the 2019/20 budget and the expected delivery of services within budget;
2. Council be recommended to approve the budget virements to the 2019/20 budget, as part of the revised budget 2019/20, as detailed in Appendix 4.