Issue - meetings

To present to the Executive the provisional 2018/19 financial outturn position on the Council’s revenue and capital budgets, including the General Fund, the Housing Revenue Account, the Housing Repairs Service and Capital Programmes.

Decision

That the Executive:

(1)       Notes the provisional 2018/19 financial outturn for the general fund, housing revenue account, housing repairs service and capital programmes as set out in sections three to seven of the report and, in particular, the reasons for any variances.

(2)       Approves the proposed transfer to general fund earmarked reserves as set out in paragraphs 3.11 and 3.12 of the report.

(3)       Approves the financial changes to both the general investment programme and the housing investment programme, as set out in paragraphs 7.3 and 7.9 in the report, that are above the 10% budget variance delegated to the Chief Finance Officer.

None.

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

The financial performance quarterly monitoring report for the third quarter predicted a shortfall against the revised budget of £206,302. The provisional outturn for 2018/19 now indicated that this shortfall had decreased by £159,946, resulting in an overall budget shortfall of £46,356 and represented a variance against the revised budget of 0.33%.

Full details of the main variances were provided in Appendix B, but the key variances were summarised as follows:

·         car parking – reduced income of £1,015,648;

·         housing benefit overpayments – reduced income of £604,533

·         homelessness bed and breakfast – increased expenditure of £101,418

·         borrowing costs – reduced expenditure of £270,063

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

·         contingencies released – reduced costs of £175,930

·         business rates Section 31 grants – increased income of £385,881

·         revenues and benefits new burdens – increased income of £180,207.

The following contributions to earmarked reserves were requested as part of the report:

·         planning delivery fund – the transfer of £95,000 of grant income received to fund an additional post to support large scale applications in 2019/20;

·         overachievement of crematorium income – the transfer of £100,000 of surplus income, net of increased cost, to an income equalisation reserve to mitigate against future fluctuations in income levels;

·         revenues and benefits shared service – transfer of £100,00 of new burdens funding to a reserve to be utilised in 2019/20, as determined by the Joint Committee.

Following the final outturn being known, it was proposed that the £95,000 planning delivery grant and £100,000 crematorium income were transferred into reserves as previously agreed. However, due to the significant reduction in housing benefit overpayments within the revenues and benefits area, it was proposed that only £45,000 of the new burdens funding was transferred into the reserve. These transfers to reserves were reflected in the provisional outturn position.

Towards Financial Sustainability Programme

The savings target included in the Medium Term Financial Strategy for 2018/19 was  ...  view the full minutes text for item 4