Agenda item

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 for Cabinet which outlined the Council’s revenue budget and savings for 2012/13.  He provided a detailed summary of the report which included the Capital Plan, Housing Revenue Account and Housing Capital Plan and advised of the format of the budgets and set out the reporting structure for the coming year. He confirmed that there were currently no significant deviations from the agreed budget strategy for 2012/13 as defined in the Medium Term Financial Plan, the Capital Plan and the Housing Stock Business Plan.

The latest revenue budget forecast, Appendix 1, indicated a small over spend across all services, including schools and corporate budgets.  It also included the Revenue Account summary for information, however, this was a separate fund and not part of the Council’s revenue budget.  Appendix 2 provided an update showing 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 £1.774m had been achieved with £1.669m classed as in progress.  The report highlighted any key variances from budget or savings targets, risks or potential additional savings that may arise throughout the year and provided a more general update on the Capital Plan and the Housing Revenue Account.

The report outlined the position with regard to the Revenue Budget and the officers provided a summary in respect of Communication, Marketing & Leisure, Planning, Regeneration & Regulatory Services, Adult Services, Environment Services, Modernising Education & Customer Care budgets and Schools.  With regard to the Capital Plan the estimated outturn was £3.8m at the end of July against an agreed Plan of £37.3m.  Appendix 3 summarised the current plan, and how it would be financed, and Appendix 4 provided an overview of major capital projects.

Specific reference was made to Communication, Marketing & Leisure and it was explained that the budget for the Rhyl Integrated Children’s Centre Oaktree Centre had been under pressure due to the loss of £80k grant funding.  While the service was taking action to reduce expenditure it was likely that the facility would overspend by £40k and it had been agreed that this would be funded corporately this financial year.  Future years’ pressures would be dealt with during the service challenge and budget setting process.

The latest Housing Revenue Account and Housing Capital Plan forecasts had been summarised in the report, together with, the Economic Commentary and Treasury Management Update.  It was explained that this would be a challenging financial period for the Council and failure to deliver the agreed budget strategy would put further pressure on services in the current and future financial years.  Members were informed that effective budget monitoring and control and early reporting of variances would help ensure that the financial strategy was achieved.

Councillor Feeley made reference to the funding element of the Foryd Harbour and Rhyl Coastal Defence projects and the possible need to utilise the contingency backing.  Councillor Thompson-Hill explained that risk elements were usually more prevalent in the early stages of such projects and would diminish considerably as the work progresses.  The Chief Executive explained that an update report would be submitted to the Project Board later in the day. 

In response to concerns raised by Councillor D.I. Smith regarding the situation pertaining to the Honey Club, and the lack of progress in relation to the application submitted to the Welsh Government for conservation area consent to demolish the building, which was now in an unstable condition and presented possible safety issues.  Details of the various options and consequences were outlined and it was confirmed that it would be an offence to demolish the building without the appropriate consent.  However, all possible steps had been taken to mitigate all risks and further representations had been made to the Welsh Government seeking the appropriate consent to demolish the structure.  Members agreed that an information report outlining the progress in relation to the Honey Club be submitted to Cabinet

In reply to questions from the Leader, the Head of Finance and Assets provided details of the proposed timescales and agenda to address issues pertaining to the Capital Plan, and the potential savings from Collaboration Programme. 

Following further discussion, it was:-

RESOLVED - that Cabinet:-

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

(b)   receives an information report on the situation and progress in relation to the Honey Club.