Agenda item

Colleen Warren, Financial Services Manager:

a)    presented a report to Performance Scrutiny Committee with a summary of actual income and expenditure for the Council, compared to the revised budget and how any surpluses had been allocated to reserves

b)    provided information on the Council’s:

·         General Fund Revenue Account – for 2022/23 the Council’s net General Fund Revenue Budget was set at £8,907,490, including a planned contribution from balances of £60,700, resulting in an estimated level of general balances at the year-end of £2,262,761 (after allowing for the 2021/22 outturn position). The General Fund Summary was currently projecting a forecast overspend of £912,511 (Appendix A provided a forecast General Fund Summary). There were a significant 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.

·         Housing Revenue Account – The Housing Revenue Account was projecting a forecast overspend of £173,049 (Appendix C provided a forecast Housing Revenue Account Summary). There were 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 D.

·         Housing Repairs Service – at quarter 2 the Housing Repairs Service was forecasting a deficit of £573,908 in 2022/23. Appendix E provided a forecast summary, with full details of the main variances provided in Appendix F.

c)    provided information in the following areas:

·         General Investment Programme – the revised General Investment Programme for 2022/23 amounted to £32.342m following the quarter 1 report. At quarter 2 the programme had been reduced by £2.186m to £30.156m as shown at paragraph 7.2.

The overall spending on the General Investment Programme for the second quarter of 2022/23 was £2.2m which was 8.8% pf the 2022/23 active programme (excluding externally delivered schemes).

·         Housing Investment Programme – the Housing Investment Programme for 2022/23 in the MTFS 2022 – 2027 amounted to £21.72m. This was increased to £23.17m following approvals and year end re-profiles as part of the 2021/22 outturn. The Overall expenditure on the Housing Investment Programme for the second quarter of 2022/23 was £3.835m, which was 17% of the 2022/23 revised programme.

d)    invited members’ comments and questions.

Members discussed the content of the report in further detail, asked questions and received relevant responses from officer’s as follows:

·         Question: What was the impact of the Chancellor’s announcements today on the Council’s finances?

·         Response: There had been an increase announced on business rate relief from 50% to 75%. The referendum cap had been lifted to allow council taxes to be raised by 4.99 per cent. The business rate threshold was to stay the same. Housing rents were capped at 7%. Most of the impact would fall on the individual member of public

·         Question: Why was there a reduced income of £30,090 from garden waste?

·         Response: This was due to a decrease in take up of the scheme due to the current cost of living crisis.

·         Question: There was a significant anticipated reduction in income from the Christmas Market 2022?

·         Response: It was true that the Christmas Market this year would struggle to break even due to increases in contract prices and some traders no longer being in business.

·         Question: Could further clarification be given to the amount of £106,550 additional unbudgeted costs on supplies and services for city car parks?

·         Response: Officers would report back to members with a breakdown of this figure in due course.

·         Question: What action was being taken to attract applications for manual trades vacancies within the housing repairs service to reduce the need of increased reliance on sub-contractors with increased prices?

·         Response: It was proving difficult to attract a fully staffed workforce to the Housing Service although the situation was improving. The authority was looking at employing multi-skilled operatives more effectively. Employment of external contractors to assist with void properties incurred higher costs. Several contracts had been employed to help with voids on a temporary basis, however, the service was still under pressure and needed additional help.

·         Question: Could officers give clarification to changes to the Housing Investment Programme that required Executive approval to move the budget for bathroom/kitchen improvements to heating, and to be reprofiled to 2023/24?

·         Response: If work was not required on bathroom and kitchen improvements the budget was moved to replacement heating installations.

·         Question: Why had there been a nil spend on artificial grass pitches in 2022/23?

·         Response: The budget for this spend had been allocated to complete existing work which had come in cheaper than anticipated and actually made a saving.

·         Question: What type of equipment was a HIAB and Mule?

·         Response: This piece of equipment was a crane and a 4 x 4 vehicle used for snow clearance etc.

·         Question: In what area was the additional expenditure at Yarborough Leisure Centre incurred?

·         Response: This related to payments to the contractor for lost income as a result of the swimming pool being closed for repairs, the December 2022 payment being the last to be made.

RESOLVED that:

1.    A further breakdown of reason for additional unbudgeted costs for car park supplies and services be provided to members.

2.    Financial performance for the period 1 April to 30 September 2022 and the projected outturns for 2022/23 be noted.

3.    The underlying impact of the pressures and underspends identified in paragraphs 3.3 (and Appendix B), 4.3 (and Appendix D), and 5.2 (and Appendix F) of the officer’s report be noted.

4.    The changes to the General Investment Programme and Housing Investment Programme as approved by the Chief Finance Officer and Lincoln Town Board detailed in paragraphs 7.3, 7.4, 7.5 and 7.12 of the officer’s report be noted.