Agenda item

Laura Shipley Financial Services Manager:

1. presented a report to Performance Scrutiny Committee with a summary of the first quarter’s performance (up to 30 September 2023), on the Council’s

·         General Fund

·         Housing Revenue Account

·         Housing Repairs Service

·         Capital Programmes

b.    requested that Performance Scrutiny Committee note the changes to the capital programmes

3. provided information on the following:

·         General Fund Revenue Account – for 2023/24 the Council’s net General Fund Revenue Budget was set at £14,402,660, including a planned contribution from balances of £191,110 resulting in an estimated level of general balances at the year-end of £2,228,739 (Appendix A provided a forecast General Fund 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 B

·         Housing Revenue Account –– for 2023/24 the Council’s Housing Revenue Account (HRA) net revenue budget was set with a planned contribution from balances of £58,930, resulting in  estimated general balances at year-end of £1,125,517, after allowing for the 2022/23 outturn position (Appendix C provided a forecast Housing Revenue Account Summary) Although the forecast position was an underspend there was a number of significant variations in income and expenditure. Full details of the main variances were provided at Appendix D

·         Housing Repairs Service – For 2023/24 the Council’s Housing Repairs Service (HRS) net budget was set at zero, which reflected its full cost recovery nature. At quarter 1 the HRS was forecasting a deficit of £761,406 in 2023/24. Full details of the main variances were provided at Appendix F

·         General Investment Programme – the revised General Investment Programme for 2023/24 amounted to £24.688m  following the quarter 1 report. At quarter 2 the programme had been increased by £0.096m to £24.784m as shown at paragraph 7.2. The overall spending on the General Investment Programme for the second quarter of 23/24 was £4.4m, which was 22.6% of the 2023/24 budget as detailed in Appendix I

·         Housing Investment Programme – the revised programme for 2023/24 amounted to £17.969m following the quarter 1 position. At quarter 2 the programme had been decreased by £1.107m to £16.862m as shown at paragraph 7.9 of the report. The overall expenditure on the Housing Investment Programme at the end of quarter 2 was £4.205m, which was 24.94% of the 2023/24 revised programme as detailed at Appendix J of the report. A further £0.649m had been spent as at the end of October 2023

4. invited members’ comments and questions.

Members of the committee asked the following questions and received relevant responses from Officers:

Question: Who paid the £50,000 to support utility inflation pressures at Yarborough Leisure Centre?
Response: This was a provision made by the Council which could be drawn on if needed. The Council did not pay a management fee to Active Nation but were liable for a small percentage of any losses over the year.

Question: There was an £11,000 cost to deep clean the Central Car Park. Was this an additional cost to the regular deep clean?
Response: This referred to the regular deep clean and was not an additional cost. A deep clean was carried out as and when needed.

Question: Why had there been a reduced income at the Crematorium?
Response: There had been a lower death rate.

Question: Could more detail be provided on the £150k that would be spent on the Central Car Park lifts?
Response: There had been issues with the reliability of the lifts, particularly the  2 busiest lifts on the north side of the car park. Part of the controls in the lift would be replaced.

Question: What specifically was wrong with the lifts? Was it that they were not suitable for the car parks?
Response: A report was completed by specialist consultants who had identified that there was an issue with  part of the lift controls and this mechanism needed replacing. Overall the lifts are of a high quality and perfectly safe to use, its just some small items of equipment that were proving problematic.

Comment: The lifts had been unreliable for some time, this was a standard piece of equipment that should be capable of serving customers.
Response: The Central Car Park had been exceptionally popular and had been more successful than it was envisaged in the business case. The £150k had been set aside as a provision of what would need to be spent, once procurement had taken place it could cost less.

Question: Referred to paragraph 7.12 of the report in relation to the financial changes approved by the Chief Finance Officer. What was the £41k in relation to Thurlby Crescent approved for?

Response: An answer would be provided following the meeting.

Question: Please clarify why there had been zero spend this year on the new build programme for the Western Growth Corridor, yet work was ongoing?
Response: This part of the report referred to the Housing Investment Programme (HIP), the actual expenditure to date was included in the General Investment Programme with the appropriate proportion recharged to the HIP at the end of the financial year.

RESOLVED that:

1. Relevant responses to questions raised by members be provided by officers following the meeting as requested.
   
   
2. The financial performance for the period 1 April to 30 September 2023 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) be noted.

4.    The changes to the General Investment Programme and Housing Investment Programme as approved by the Chief Finance Officer as detailed in paragraphs 7.5 and 7.12 be noted.

5.    The changes to the General Investment Programme and Housing Investment Programme as detailed in paragraphs 7.4, 7.10 and 7.11 be noted and be forwarded to Executive for approval.