Issue - meetings

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Corporate Plan and Performance (copy enclosed) detailing the latest financial position and progress against the agreed budget strategy.

RESOLVED that Cabinet –

(a)       notes the budgets set for 2016/17 and progress against the agreed budget strategy;

(b)       approves the transfer of £0.150m from the Facilities, Assets and Housing underspend to a Rhyl Waterfront Development Reserve which will be held centrally and used to help cash-flow a number of projects, some of which have already been approved in principle, and

(c)        notes the proposed use of service underspends where indicated and that formal approval will be requested when exact figures are known as part of the Final Outturn Report.

Councillor Julian Thompson-Hill presented the report detailing the latest financial position and service budgets for 2016/17.  He provided a summary of the Council’s financial position as follows –

·        a net underspend of £0.241m was forecast for service and corporate budgets

·        68% of savings had been achieved to date (target £5.2m) with a further 2% making good progress; 25% would be deferred and achieved in 2017/18 with only 5% of savings not being achieved within the timeframe

·        highlighted current risks and assumptions relating to individual service areas

·        a general update on the Housing Revenue Account, Housing Capital Plan and the Capital Plan (including the Corporate Plan element).

Cabinet was also asked to approve the transfer of £0.150m from the Facilities, Assets and Housing underspend to a Rhyl Waterfront Development Reserve and to note the proposed use of service underspends where indicated.

The following matters were raised during debate –

·         Councillor Eryl Williams highlighted the budget pressures on schools, despite the budget protection of 1.85%, with 24 schools currently projecting deficit balances.  Cabinet had previously resolved to set up a task and finish group to review the level of school balances and understand the factors contributing to those levels.  The Head of Legal, HR and Democratic Services agreed to provide an update on progress prior to the next Cabinet meeting

·         reference to ‘Community Services’ should read ‘ Community Support Services’

·         Councillor Bobby Feeley referred to the possibility of a further £700k identified savings to contribute to the £2.3m overspend in Community Support Services

·         Councillor David Smith highlighted the lack of progress in distributing the limited funding made available from the Welsh Government in order to help meet costs incurred by the Council in the restoration of transport services following the collapse of GHA coaches.  A decision had still not been made on the amount of funding for Denbighshire but despite initial assurances it would not be sufficient to cover all additional costs incurred and would be a one off payment with no ongoing provision.  Councillor Smith considered the situation unacceptable

·         in view of the investment success in leisure services Councillor Hugh Irving asked that revenue details be provided in order to ascertain how those services were performing.  It was agreed to provide that information in the next regular Finance Report and Cabinet was advised that the majority of capital investment in leisure facilities had been possible due to self-funding prudential borrowing which had been cost neutral to the council as a whole

·         the PFI contract buyout had resulted in significant savings to the authority and maintenance costs had also been reduced.  Concerns regarding workmanship to the roof of Ruthin Town Hall and recent storm damage would be referred to property services to investigate.

RESOLVED that Cabinet –

(a)       notes the budgets set for 2016/17 and progress against the agreed budget strategy;

(b)       approves the transfer of £0.150m from the Facilities, Assets and Housing underspend to a Rhyl Waterfront Development Reserve which will be held centrally and used to help cash-flow a number of projects, some of which have already been approved in principle, and

(c)        notes the proposed use of service underspends where indicated and that formal approval will be requested when exact figures are known as part of the Final Outturn Report.