Issue - meetings

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

Councillor J. Thompson Hill presented the report which detailed the Council’s revenue budget and savings as agreed for 2012/13, as at the end of January 2013.  It provided a summary update of the Capital Plan, the current financial position of the Council and sought approval for recommendations made by the Strategic Investment Group.

RESOLVED - that Cabinet:-

(a)          notes the budgets and savings targets for the year, as specified in the report, and progress against the agreed budget strategy, and

(b)          agrees to the funding of feasibility works in relation to Rhyl High School and Bodnant Community School, Prestatyn in the sum of £1.8 million

Councillor J. Thompson Hill presented the report which detailed the Council’s revenue budget and savings as agreed for 2012/13, as at the end of January 2013.  It provided a summary update of the Capital Plan, the current financial position of the Council and sought approval for recommendations made by the Strategic Investment Group.

He explained that the latest revenue budget forecast had been included as Appendix 1 and indicated an under spend across service and corporate budgets of £631k (£435k last month), which represents a variance of 0.55% across the total net budget.  The position for schools forecasts positive net movement on balances of £286k on delegated budgets and £161k on non-delegated school budgets.  The Housing Revenue Account summary had been included in Appendix 1 for information but this was a separate fund and not part of the Council’s main revenue budget.      

            Appendix 2 provided an update on progress against the savings and pressures agreed as part of the 2012/13 budget setting process.  In total, net savings of £3.443m had been agreed and £3.102m (90%) have been achieved with £316k (9%) classed as in progress and £25k (1%) had been deferred to next year.  The deferral related to savings due to printer rationalisation.  The remaining items still classed as ‘in progress’ were all considered achievable, but in most required analysis of a full year’s activity to properly assess whether the saving measure listed had actually been achieved.

Cllr Thompson Hill provided a summary of the following Service Budgets which had been detailed in the report:-

·                     Business Planning and Performance.

·                     Adult & Business Services.

·                     Highways & Environmental Services.

·                     Children & Family Services.

·                     Communications, Marketing & Leisure.

·                     Customers & Education Support.

·                     School Improvement & Inclusion.

·                     Schools.

·                     Corporate Budgets.

He explained that the additional cost of the immediate response to the recent flooding events had fallen short of the Emergency Financial Assistance Scheme threshold, and there had been an assumption that the Council would fund the cost.  The Head of Finance and Assets (HFA) confirmed that a claim for all eligible costs had been submitted to Welsh Government for discretionary funding.  There were on-going costs in relation to exemptions from Council Tax and a further emerging pressure had arisen from the winding up of the Mutual Municipal Insurance Company in 1992, as Local Authority Members would be responsible for liabilities still arising relating to events prior to 1992.  The HFA explained that Denbighshire would meet a proportion of the liability claims, based on population figures, which would amount to approximately 20% of the costs.  He informed Members that a contingency fund would be built into the budget and details of the costs would be included in the next finance report to Cabinet. 

There were potential liabilities in respect of the former Rhuddlan Borough Council, and additional liabilities were now arising in respect of the former Clwyd County Council.  The amount of the potential Clwyd liability was uncertain and the Council’s total exposure to the Clwyd claims was approximately £2.5m, but it was unlikely that the liability would be triggered at this level.

            Council Tax collection rates had exceeded assumptions and it had been presumed that any benefit would be utilised to contribute to the funding of the Council’s strategic investment priorities as part of the Corporate Plan, Councillor J. Thompson-Hill confirmed that full details would be included in the yearend report.  Expenditure to the end of January, 2013 had been £19.4m against an agreed Plan of £31.4m.  Last year the final quarter accounted for 43% of the total expenditure for the year.  Appendix 3 provided a summary of the current plan and how it had  ...  view the full minutes text for item 5