Issue - meetings

Purpose of Report

To present to the Executive the provisional 2017/18 financial outturn position on the Council’s revenue and capital budgets, including:

·         General Fund

·         Housing Revenue Account

·         Housing Repairs Service

·         Capital Programmes

The report also provided a review of the key budget risk assessments.

Decision

(1)       That the provisional 2017/18 financial outturn for the General Fund, Housing Revenue Account, Housing Repairs Service and Capital Programmes, as set out in paragraphs 3 to 7 of the report, and the reasons for any variances, be noted.

(2)       That the proposed transfer to the General Fund earmarked reserves in paragraphs 3.6, 3.8, 3.9 and 3.11 prior to reporting to the Executive be approved.

(3)       That the proposed transfer to the Housing Revenue Account earmarked reserve in paragraph 4.4 of the report be approved.

(4)       That the financial changes to both the General Investment Programme and the Housing Improvement Programme, as set out in paragraphs 7.3, 7.4 and 7.10 of the report, above the 10% budget variance limit be delegated to the Chief Finance Officer.

Alternative Options Considered and Rejected

None.

Reason for Decision

General Fund

For 2017/18 the Council’s net General Fund revenue budget was set at £10,435,620, which included a planned contribution from balances of £702,440 resulting in an estimated level of general balances at the year-end of £1,609,364.

The financial performance quarterly monitoring report for quarter three predicted an underspend against the revised budget, exclusive of approved carry forwards, of £457,856. The provisional outturn for 2017/18 indicated that an increase in that underspend of £129,682 had occurred, resulting in an overall variance of £587,538 provisional underspend which represented a variance against the revised budget of 5.6%. Full details of the main variances were appended to the report, with key variances noted as follows:

·         car parking – reduced income of £290,000;

·         waste collection/street cleansing – increased expenditure of £69,990;

·         Crematorium – increased income of £152,360;

·         Christmas market – increased expenditure of £56,180;

·         City Hall – reduced expenditure of £177,280;

·         business rates – increased income of £279,710;

·         revenues and benefits (net of bad debt provision) – reduced income and expenditure of £73,400;

·         interest payable – reduced expenditure of £137,960;

·         new homes bonus contingency – reduced expenditure of £102,640.

Details regarding the proposed transfer of earmarked reserves in respect of the General Fund were set out in the report at paragraphs 3.6, 3.8, 3.9 and 3.11 of the report.

Housing Revenue Account

For 2017/18 the Council’s Housing Revenue Account net revenue budget was set as a deficit of £64,170, resulting in an estimated level of general balances at the year-end of £1,023,099.

The financial performance quarterly monitoring report for quarter three predicted an underspend of £211,970. The provisional outturn for 2017/18 now indicated an underspend of £616,377. This would result in Housing Revenue Account balances at 31 March 2018 of £1,639,476. The main reason for the additional resources over and above the position forecast at quarter three was an increasing trading surplus repatriated from the Housing Repairs Service and an increased underspend on supervision  ...  view the full minutes text for item 4