Issue - meetings

To provide the Executive with the third quarter’s performance, up to 31 December 2018, on the Council’s General Fund, Housing Revenue Account, Housing Repairs Service and Capital Programmes.

Decision

(1)       That progress on financial performance for the period 1 April 2018 to 31 December 2018 and the projected outturns for 2018/19 be noted.

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

(3)       That the proposed contributions to earmarked reserves, as set out in paragraph 3.7 of the report, be approved.

(4)       That the changes to the General Investment Programme and Housing Investment Programme, as detailed in paragraphs 7.4 and 7.10 be approved.

None.

The forecast financial position of the Council up to 31 December 2018 for 2018/19 was set out in paragraph 2.1 of the report with further details shown in sections 3 to 7 of the report and accompanying appendices.

General Fund

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. This resulted in an estimated level of general balances at the year-end of £1,897,724.

The General Fund summary was currently projecting a forecast budget shortfall of £206,302 as set out 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 the main variances were set out in Appendix B, with key variances noted as follows:

·         car parking – reduced income and reduced expenditure equating to £908,090;

·         Christmas Market – increased expenditure and reduced income equating to £85,950;

·         Housing Benefit overpayments – reduced income of £225,280;

·         homelessness Bed & Breakfast – increased costs of £157,990;

·         development management – increased income of £114,190;

·         Houses in Multiple Occupation fees – increased income of £65,930;

·         borrowing costs/contingency – reduced costs of £272,050;

·         balance sheet review – increased income of £70,170;

·         earmarked reserves – increased income of £280,220;

·         contingencies released – reduced costs of £175,930.

Given the scale of the shortfall in car parking income targets, as identified in previous quarterly reports, the Council’s Corporate Management Team continued to accelerate the implementation of the car parking income generation strategy. Action taken to date had demonstrated a positive effect in terms of the forecast shortfalls against the car parking income targets which had improved from a forecasted shortfall of £1.141 million at quarter one to £1.011 million at quarter three. It was anticipated that this positive trend would continue, however, reflective of the significant shortfall in achieving the income targets the Medium Term Financial Strategy had been revised, with a significant reduction in income targets to be set in the early years of the Strategy, increasing over time as per paragraph 3.4 of the report.

Included within the forecast budget shortfall of £206,302 were a number of proposed transfers to earmarked reserves, as follows:

·         Planning  ...  view the full minutes text for item 112