Agenda item

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

RESOLVED that Members note the budgets and savings targets for the year and progress against the agreed budget strategy.

Councillor Julian Thompson-Hill presented the Finance Report giving details of the Council’s revenue budget and savings agreed for 2012/13 as at the end of September 2012.  The report also gave a summary update of the Capital Plan, the Housing Revenue Account and Housing Capital Plan.

All items that were classed as “in progress” were reviewed during the service challenge process and it was confirmed these would be delivered throughout the financial year.

Schools had shown a small projected under-spend.  There was a significant amount of work to be done involving those schools in financial difficulty.  Those schools had recovery plans in place and were actively working to the targets set out within those plans.

During preparation work of the 2012/2013 budget, a number of assumptions had to be made regarding pressures that the Council would face and appropriate budgets were put in place.   Two major pressures were the likelihood of a pay rise for staff and significantly increasing energy costs.  As such, the Council budgeted around £1.5million to cover those costs.  The budgeted pay rise for staff did not happen.  The pay freeze was confirmed after the budget had been set and, therefore the Council had a budget for a pay rise that would not take place. 

The rise in energy prices was originally budgeted at 20% but they were more in the region of 10% and therefore, the additional budget was not required.

£1.7million cash was available to Denbighshire County Council and in light of discussions which had taken place regarding the new Corporate Plan and to cater for developing priorities, it had been agreed a large investment took place over the next 5/6 years.  The £1.7million would be transferred to reserves.

Wales Audit Office approved the Council’s annual accounts.  Councillor Julian Thompson-Hill formally thanked Paul McGrady, Richard Weigh and all the staff who had been involved in the preparation of the accounts.

Capital contingency had been added to the Rhyl Harbour Cycle and Pedestrian Bridge project, together with a further contribution from SUSTRANS of £250,000.

There was an update regarding Rhyl Going Forward.  Conservation Area Consent had been granted from the Welsh Government to demolish The Honey Club in Rhyl.  However, the Council were required to allow for an appeal period of six weeks.

The summary of finances carried forward indicated £200,000 which was yet to be allocated.  It was for colleagues to decide whether to place this in the reserves.

Information regarding the expenditure on highways for this year was requested by Councillor Eryl Williams.  The Joint Head of Highways and Infrastructure agreed to provide this information.

The Rhyl Sky Tower had been brought back under the control of Denbighshire County Council.  The Rhyl Going Forward Manager and team were working on the property portfolio and revenue costs.

The Corporate Director, Modernising and Wellbeing, gave a brief update regarding Adult Services.  There was a piece of work taking place across Local Authorities looking into a 3 year spend plan.  Greater clarity on the project was not available at this time.

The Corporate Director: Economic and Community Ambition, confirmed extensive discussions were taking place regarding Phase 3 of the Coastal Defence Work.  There had been issues regarding flooding and further discussions were ongoing with the Scarborough Group.

Councillor Bobby Feeley informed the Members that according to the news report predictions, flooding was to increase in the future.  Local Authorities   needed to be aware of this and take on board the fact that extra funding would be required to deal with the issue.   Councillor David Smith confirmed there was a flood plan available which indicated the likely flood areas within Denbighshire.  Councillor Smith agreed to submit the plan to a future meeting.

RESOLVED that Members note the budgets and savings targets for the year and progress against the agreed budget strategy.