Issue - meetings

To present the third quarter’s performance on the Council’s General Fund, Housing Revenue Account, Housing Repairs Service and Capital Programme.

Decision

That Executive:

1.    Note the progress on the financial performance for the period 1 April to 31 December 2019 and the projected outturns for 2019/20.

2.    Note the underlying impact of the pressures and underspends identified in paragraphs 3.2, 4.2 and 5.2 of the report, as set out in Appendices B, D and F respectively.

3.    Approve the proposed contributions to and from reserves in paragraph 3.5 and the carry forward requests detailed in paragraph 3.6 of the report.

4.    Approve the changes to the General Investment Programme and Housing Investment Programme as approved by the Chief Finance Officer and detailed in paragraphs 7.3 and 7.10 of the report.

5.    Approve the changes to the General Investment Programme as detailed in paragraph 7.5 of the report.

None.

Updates were reported as follows:

General Fund Revenue Account

For 2019/20 the Council’s net General Fund revenue budget was set at £13,655,090, including a planned contribution from balances of £554,410 which resulting in an estimated level of general balances at the year-end of £2,452,134.

The General Fund summary was currently projecting a forecast overspend of £222,080, as set out in Appendix A of the report. 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 provided in Appendix B of the report while the key variances were noted as follows:

·       Homeless Bed and Breakfast – increased expenditure: £107,800;

·       Savings Target – shortfall in delivery: £201,750;

·       Housing Benefit Overpayment – reduced income: £318,000;

·       Houses in Multiple Occupation – reduced income: £74,260;

·       City Bus Station – reduced expenditure: £104,800;

·       External Interest payable – reduced expenditure: £225,945;

·       City Hall, Industrial Estates and Lincoln Property – increased income: £159,360;

·       Car Parking – increased income: £162,000;

·       Car Parking – increased expenditure: £135,000;

·       Bereavement Services – increased income: £124,150;

·       Bereavement Services – increased expenditure: £88,020;

The most significant of the forecast variations was the reduction in the level of housing benefit overpayment being raised. Whilst this was positive in that the number of overpayments were reducing, this in turn created a budgetary pressure. This was a continuation of a trend from 2017/18 and 2018/19 with the transition of benefits customers to Universal Credit and the use of ‘real time’ information which meant that the level of overpayments raised had drastically reduced. The budget pressure was as a result of the consequential reduced income from reclaiming the overpayment from the claimant and would require a budget realignment as part of the Medium Term Financial Strategy.

Although forecast outturn for the General Fund was a shortfall of £222,080, at this stage in the financial year forecast outturns were difficult to predict and often subject to volatility.

Further to additional contributions from reserves there were also a number of contributions to and  ...  view the full minutes text for item 101