Issue - meetings

Purpose of Report

To present to the Executive the third quarter’s performance up to 31 December 2017 on the Council’s general fund, housing revenue account, housing repairs service, capital programmes and to provide a review of key budget risk assessments.

Decision

That the Executive:

(1)       Notes the progress on the financial performance for the period 1 April 2017 to 31 December 2017 and the projected outturns for 2017/18.

(2)       Notes the underlying impact of the pressures and underspends identified in paragraphs 3.2, 4.3 and 5.2 of the report and appendices B, D and F.

(3)       Approves the proposed contribution of £50,000 to the Revenues and Benefits Shared Service reserve as detailed in paragraph 3.6 of the report.

(4)       Approves the proposed contribution of £100,000 to the Invest to Save reserve for Marketing Services across the authority as detailed in paragraph 3.7.

(5)       Approves the changes to the General Investment Programme as detailed in paragraph 7.5 of the report and the Housing Investment Programme as detailed in paragraph 7.10 of the report.

Alternative Options Considered and Rejected

None.

Reason for Decision

The forecast financial position of the Council for 2017/18 as at the third quarter up to 31 December 2017 was set out in paragraph 2.1 of the report. Further updates were noted as follows:

General fund revenue account

The general fund was currently projecting a forecast underspend of £457,856 as set out in the general fund summary attached to the report at Appendix A. This forecast variance was the result of a number of forecast year-end variations in income and expenditure against the approved budget. Full details of main variances were outlined in Appendix B to the report, with key variances summarised as follows:

·         interest payable – reduced expenditure of £79,650;

·         Christmas market – increased expenditure of £79,880;

·         City Hall Car Park – increased expenditure of £110,830;

·         Lincoln properties – increased income of £56,000;

·         City Hall – reduced expenditure of £132,440;

·         New Homes Bonus contingency – reduced expenditure of £102,640.

It was noted that the Corporate Management Team would undertake a review of all carry forward requests following confirmation of the final outturn, alongside a review of the resources available to support delivery of the Council’s Vision 2020 programme, which would be presented to the Executive in June 2018. In addition to these carry forward requests, there had been significant New Burdens grant funding received in the Revenues and Benefits Shared Service during the year. Many of these were to cover work already being undertaken by the Shared Service. It was therefore proposed to transfer £50,000 to the Revenues and Benefits Shared Service reserve to cover anticipated future reductions to the Department for Works and Pensions administration grant the authority received.

With an increasing focus on the commercialisation agenda, it was proposed that a further £100,000 be transferred into the Invest to Save reserve for Directorates to bid against for monies to assist in marketing services in order to protect and grow the Council’s key income generating areas.

A summary  ...  view the full minutes text for item 124