Agenda item

To consider a report by Councillor Julian Thompson-Hill (copy enclosed) which provides the latest financial position and progress against the agreed budget strategy.

Councillor J. Thompson Hill presented the report, circulated previously, which provided an update on the Council’s current financial position.

 

RESOLVED - that:-

 

(a)  Cabinet receives the report and notes the progress against the agreed budget strategy, and

(b)  an update report in respect of Post 16 transport provision be presented to the next Cabinet meeting.

 

Councillor J. Thompson Hill presented the report, circulated previously, which provided an update on the Council’s current financial position.

 

The report summarised the Council’s revenue budget and savings for 2013/14, Appendix 1, the net budget being £192m.  There had been a forecast under spend on service and corporate budgets of £501k at the end of August which represented a variance of 0.55%.  School budgets forecast a positive movement on balances of £190k, £352k last month.

 

Appendix 2 detailed the progress to date against the savings highlighted in the Medium Term Financial Plan for 2013/13.  A savings target of £3.061m had been agreed for the year and currently 54%, £1.666m, had been achieved.

 

It was explained that narrative supporting service forecasts would be necessary as summarised in the report:-

 

Communications, Marketing & Leisure - the current forecast had been to break-even but there were several volatile budgets dependent on meeting large income targets. Based on present figures all budgets were on target.

 

Customer & Education Support – There had been a projected under spend of £110k, £58k related to delays in the full implementation of the Customer Services restructure.

 

Business Transformation/ICT - the forecast had been the budget would be slightly under target by £1k.  Any year end under spend from the service could be utilised to fund gaps in the next phase of the Council’s ICT strategy, particular reference being made to the Microsoft Enterprise Agreement.

 

Highways & Environment Services – a forecast over spend of £194k with the majority relating to School Transport Service.  This had been influenced by the number of school days in the 2013/14 financial year partly due to the timing of the Easter break.  Pressure had been lessened following a review of reserves resulting in the release of £106k.  This pressure had been reduced following a review of reserves resulting in the release of £106k, mainly the Yellow Bus Reserve of £101k which was now no longer required.

 

Adult & Business Services – the 2013/14 outturn was currently forecast to be a £45k under spent.  The national requirement to protect social care budgets had resulted in additional funding within the year of £905k.

 

Children & Family Services – an under spend of £539k had been reported with £285k relating to staffing budgets, a £94k under spend on specialist placements, £61k identified for a fostering placement which was no longer required and £99k of the under spend rolled forward from 12/13 which had not yet been committed.  Savings had been proposed for 2014/15 around some of these budgets and discussions were taking place with Leisure Services to consider future service delivery models to provide active programmes for Children with Disabilities (CWD).  The service proposal had been that £250k of any under spend be set aside in a CWD Reserve for future use.

 

Schools - the projection for school balances had been £3.060m at the end of August, a positive movement of £190k on balances brought forward from 2012/13 of £2.870m. The outturn included protection of £775k provided as transitional financial assistance for schools affected by funding formula changes.

 

With regard to Corporate budgets there had been a forecast to generate an under spend of £350k.  There were uncertainties around centrally held allocations for energy, pensions and other costs but the availability of £350k had been assumed, however, if financial contingencies were required the assumption would be reviewed.

 

Corporate Plan reserves of £10.3m had been carried forward into 2013/14, leaving a cash requirement of approximately £11.7m required to deliver the Plan.  The 2013/14 budget specifically earmarked new budget resources of £600k to be allocated to the Corporate Plan Reserve and made assumptions that at least £1.3m of previously identified resources would be transferred to fund the Corporate Plan if circumstances allowed.

 

The Housing Revenue Account (HRA) budget had been included within Appendix 1, but these were separate funds only to be utilised in the provision of council housing services.  The latest revenue position assumed a £5k increase in balances at year end, an improvement of £107k on the budgeted assumption.  The Housing Capital Plan remained on target to spend £8.1m with the Welsh Housing Quality Standard being achieved by the end of 2013/14.  In response to a question from the Leader, Councillor Thompson-Hill detailed the changes to the Housing Revenue Account                                      and explained that it had been assumed that the Housing Subsidy System in Wales would be abolished from April, 2014, and negotiations around a possible buy-out were currently on-going.

 

Details of the Capital Plan had been enclosed as Appendix 3.  The approved general Capital Plan was £45.8m and expenditure to the end of August was £7.6m.  The Plan had increase by £5m from last month as additional grants had been confirmed.  Appendix 3 detailed the proposed expenditure of £6.8m on the Corporate Plan, and Appendix 4 provided an update of the major capital projects within the Capital Plan.

 

A synopsis of the Equality Impact Assessment had been submitted to Council in February, 2013 and details of the consultation process, potential risks and measures implemented to address them and the Chief Finance Officer Statement had been included in the report.

 

In reply to a request from the Leader, the HFA agreed that an update could be provided at the forthcoming Work Shop in respect of the funding requirement and commitment to meet the objectives and aims of the Corporate Plan. 

 

Councillor D.I. Smith responded to questions from Members and explained that TAITH would, as part of a review of its structure, be jointly examining the provision of travel to schools and colleges across North Wales.  Members agreed with the suggestion by the Chief Executive that further information be sought from TAITH, and an update report in respect of Post 16 transport provision be presented to the next Cabinet meeting.

 

RESOLVED - that:-

 

(a)  Cabinet receives the report and notes the progress against the agreed budget strategy, and

(b)  an update report in respect of Post 16 transport provision be presented to the next Cabinet meeting.