Issue - meetings

Purpose of Report

To provide the Executive with an opportunity to consider the second quarter’s performance, up to 30 September 2018, on the General Fund, Housing Revenue Account, Housing Repairs Service and capital programmes.

Decision

That the Executive:

(1)       Notes the progress on the financial performance for the period 1 April 2018 to 30 September 2018 and  the projected outturns for 2018/19.

(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 respectively.

(3)       Approves the changes to the General Investment Programme and Housing Investment Programme as detailed in paragraphs 7.5, 7.10 and 7.11 in the report.

Alternative Options Considered and Rejected

None.

Reason for Decision

General Fund Revenue Account

For 2018/19 the Council’s net General Fund revenue budget was set at £14,276,460, including a planning 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 overspend of £299,600 which was a variance of a number of forecast year-end variations in income and expenditure against the approved budget. Full details of the main variances were set out in Appendix B to the report and were summarised as follows:

·         car parking reduced income - £1,133,500;

·         development management increase income - £84,810;

·         houses in multiple occupation fees increased income - £256,910;

·         borrowing contingency reduced cost - £200,000;

·         balance sheet review increased income - £70,170;

·         income volatility reserve increased income - £178,070;

·         pay contingencies reduced cost - £82,600.

In terms of the Towards Financial Sustainability Programme, the savings target included in the Medium Term Financial Strategy for 2018/19 was £3,850,000. Progress against this target based on quarter two performance showed that secured and confident projections totalled £3,867,900 which resulted in a current forecast under achievement of the target in 2018/19 of £12,890.

Income from fees and charges represented a significant proportion of income to the Council, with primary sources being from car parking, development management and building regulations. A summary of the progress against these key income streams against the approved budget, together with the forecast variance for the second quarter of the financial year, was provided in paragraph 3.4 of the report. Given the scale of the shortfall in car parking income targets, the implementation of the car parking income generation strategy had been accelerated which focussed on five key strands:

·         car park improvements;

·         promotion of the city as a destination;

·         maximisation of car parking stock;

·         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 to modal shift or to move into city centre car parks.

Housing Revenue Account

For 2018/19 the Council’s Housing Revenue Account net revenue budget was set at break even, resulting in an estimated level of general balances at the year-end of £1,023,099.

The Housing Revenue Account was currently projecting an in-year overspend of  ...  view the full minutes text for item 65