Issue - meetings

To present to the Executive the first quarter’s performance up to 30 June 2018 on the Council’s General Fund, Housing Revenue Account, Housing Repairs Service and Capital Programmes.

Decision

(1)          The progress on the financial performance for the period 1 April 2018 to 30 June 2018 and the projected outturns for 2018/19 be noted.

(2)          The underlying impact of the pressures and underspends identified in paragraphs 3.2, 4.3 and 5.2 of the report, together with Appendices B, D and F be noted.

(3)          The changes to the General Investment Programme and Housing Investments Programme, as set out in paragraphs 7.4 and 7.10 of the report be approved.

None.

General Fund Revenue Account

For 2018/19 the Council’s net General Fund revenue budget was set at £14,276,460, including a planned contribution to balances of £288,360 resulting in an estimated level of general balances at the year-end of £1,897,724.

The General Fund summary was currently projecting a forecast variance of £717,343, as set out in Appendix A of the report. Full details of the main variances were provided in Appendix B and were summarised as follows:

·         car parking – reduced income of £1,141,000;

·         income volatility reserve – increased income of £178,000;

·         borrowing contingency – reduced costs of £200,000;

·         balance sheet review – increased income of £82,450;

·         pay contingencies – reduced costs of £82,600.

The most significant of these variances was the shortfall of car parking income against the budget target. This was a trend that began to emerge towards the end of 2017/18 and reflected a reduction in demand for shopper car parking spaces. This position was in line with a reduction in footfall in the city centre and general decline in high street shopping and fragility of the retail sector. In response to this emerging trend, £178,000 of the General Fund underspend at the end of 2017/18 was set aside in an income volatility reserve to mitigate part of the shortfall forecasted for 2018/19. Given the scale of the shortfall in car parking income targets, the Council’s Corporate Management Team had accelerated the implementation of the car parking income generation strategy.

This strategy focused on the following five key strands:

·         car park improvements – focussing on making City Council car parks the preferred choice, including enhanced ticket machines to improve connectivity and to offer contactless payment and improved security arrangements;

·         promotion of the city as a destination – focussing on maximising the linkages between visitor numbers into the city and an improving offer in the city with the utilisation of the Council’s parking stock;

·         maximisation of car parking stock – focussing on ensuring that the Council’s car parks were in the correct location and condition, in line with the Car Parking Strategy and considering alternative income generation opportunities for some sites;

·         permit parking – focussing on increasing the number of permit parking arrangements with major employers in the city;

·         residents’ parking – focussing on responding to residents’ concerns and encouraging commuters  ...  view the full minutes text for item 37