Agenda item

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance and Assets (copy enclosed) detailing the final revenue outturn position for 2013/14 and proposed treatment of reserves and balances.

RESOLVED that Cabinet agrees to recommend to full Council –

(a)       the final revenue outturn position for 2013/14, and

(b)       the treatment of reserves and balances as detailed in the report.

Councillor Julian Thompson-Hill presented the report detailing the final revenue outturn position for 2013/14 and proposed treatment of reserves and balances.  The final Revenue Outturn figures (Appendix 1); Service Outturn Details (Appendix 2); School Balances (Appendix 3), and Transfers from/to Earmarked Reserves (Appendix 4) had been attached to the report.

Councillor Thompson-Hill guided members through the detail of the report and appendices.  In brief the overall outturn position showed an underspend against the approved budget which, together with an increase in the council tax yield, strengthened the Council’s financial position.  Consequently it was possible to make recommendations for the transfer of funds to specific reserves that would assist the Council in addressing the severe financial pressures of the next few years and meet the cash commitments required to deliver the Corporate Plan.  The final position resulted in £1.1m cash funding and it was proposed that £885k be used to contribute to the cash reserve element in the Corporate Plan and £250k be set aside as a capital spend to save reserve to explore the possibility of investing in foster care accommodation.

During consideration of the report discussion focused on the following areas –

·        schools expenditure was £1.023m below the delegated budget and members discussed possible reasons for the underspend.  Individual schools were responsible for their own delegated budgets and clarification was provided on the role of the Schools Budget Forum and officers in their financial management.  Discussions were taking place with schools who had particularly healthy balances and support provided to schools in deficit.  The good progress made by the two Rhyl Secondary Schools in reducing negative balances was acknowledged and it was noted that a financial recovery plan was in place for Ysgol Pendref and a new head teacher would be taking up position shortly

·        the Corporate Plan required approximately £25m cash and £52m  borrowing to deliver the council’s ambitions.  It was clarified that the total funding allocated to the Corporate Plan reserve within the year was £4.3m with a further £855k proposed as part of the final position.  With expenditure of £797k against the reserve during the year, the final position at year end was £14.7m and delivery of the Corporate Plan was generally on track

·        Councillor David Smith was pleased that the Highways and Environmental Services budget had broken even but expressed concern that the balance had only been achieved by using funds from other sections to cover shortfalls in areas the service had no control over, such as school transport – he referred to a forthcoming Freedoms and Flexibilities meeting to address this particular issue

·        Councillor Bobby Feeley referred to the way social services was transforming with people being encouraged to be more responsible for their own health, wellbeing and independence.  She stressed the importance of non-statutory services such as leisure, libraries and countryside services in that regard

·        the Leader raised concern about the likelihood of a worse financial settlement for 2015/16 than had been previously indicated.  In view of the impact on the future provision of services he asked councillors linked to political parties to start lobbying on behalf of residents to influence that debate at a national level.  The Chief Executive advised that the council had a robust financial planning strategy in place but raised serious concerns over the planning and delivery of the significant cuts which had been suggested at such a late stage in the financial year.  Councillor Thompson-Hill added that a clear statement was needed from the Welsh Government as to what reductions in budget would be required.

RESOLVED that Cabinet agrees to recommend to full Council –

(a)       the final revenue outturn position for 2013/14, and

(b)       the treatment of reserves and balances as detailed in the report.

At this juncture (11.30 a.m.) the meeting adjourned for a refreshment break.