Councillors and committees

Agenda item

Revenue and Capital Budget Monitoring 2018-19 - Month 9

To report the revenue and capital monitoring (forecast outturn) positions for 2018/19 and note the way in which this will impact on the delivery of the Medium Term Financial Plan.

Decision:

RESOLVED that -

 

1. the forecast outturn position in respect of the General Fund including the impact of ongoing expenditure restraint and mitigating actions, for 2018/19 be noted;

2. the 2018/19 forecast outturn position on the Housing Revenue Account be noted;

3. the forecast in respect of the Schools Budget and the Dedicated Schools Grant (DSG) for 2018/19 be noted;

4. the forecast outturn position in respect of the capital programme for 2018/19 to 2021/22 be noted;

5. the changes to the capital programme set out in paragraphs 56 to 62 of the agenda report be noted;

6. Any additional business rate income from the pool pilot that is not required to deliver a balanced budget in 2018/19 is put into the general fund reserve at the year end.

Minutes:

The Committee received details of the forecast outturn position for revenue and capital expenditure in the 2018/19 financial year based upon monitoring at month 9 and noted some key risks which had a potential impact on the outturn as well as the 2019/20 budget and the medium term position

 

Members noted that an overspend on the revenue budget of £1.163m was currently projected, which was an improvement of £815,000 since the month 6 position was reported to the November meeting. The forecast variance was as a consequence of a number of issues including:

 

·         A shortfall of income in relation to new investment in commercial property which had not yet proceeded. The associated growth in capital financing was also therefore not currently required which reduced the impact of this loss of income to a net £1.5m

 

·         Delays in delivering expected savings from Commissioning and Contract Management (£1.75m), although these had been offset by one off savings from contracts in-year.

 

·         Ongoing pressures in relation to Unaccompanied Asylum Seeking Children (UASC) and Special Educational Needs (SEN) Transport within the Achieving for Children budget. The total AfC forecast overspend was £1.57m.

 

 The value of compensating underspends had, however, increased due to a number of factors including implementation of expenditure restraint, recovery action plans being implemented by the Strategic Leadership Team and the identification of other underspends.

 

On the basis of the figures presented the current forecast for the year end General Fund balance, held to mitigate against the financial risks inherent in delivering Council services was £11.929m compared with an expected balance of £13.092m if a balanced outturn position was achieved.

 

In order to more closely monitor the delivery of savings plans in year, in addition to the usual budget monitoring arrangements, a Red, Amber or Green rating had been applied to all savings proposals. It was noted that £7.070m of savings were rated Red meaning that there were not deliverable within 2018/19. These proposals had been removed from the budget for 2019/20 presented to the Committee at the same meeting.

 

The Committee also noted that a forecast underspend of £850,000 was expected within the Housing Revenue Account (HRA), an increase of £205,000 since Month 6.

 

An overspend of £1.176m was forecast on the School’s Budget compared with £2.262m at month 6. As in recent years the ongoing pressure stemmed primarily from the High Needs Block and both current and future demand for services to support children and young people with Special Educational Needs.

 

The General Fund capital programme was forecast to deliver an underspend of £27.472m in 2018/19 with an overspend of £2.555m over the four year programme. The Housing Revenue Account (HRA) capital programme was forecasting an overspend of £108,000 in year and an underspend of £3.392m across the four years of the programme. Additions and changes to the capital programme approved included:

 

·         An additional budget for the Dementia Nursing home project of £350,000 in 2018/19, £102,000 in 2019/20 and £4.812m in 2020/21, taking the total budget for the project to £15.554m.

·         The inclusion of additional Disabled facilities Grant provided for 2018/19 of £155,000

·         Additional highways funding of £396,000 in 2018/19.

·         Additions to the schools maintenance programme including roofing and flooring projects at various schools drawn down from existing reserves and reflected in forecasts

·         Reductions in school maintenance grant allocations of £2.078m in 2020/21 and 2021/22

·         Additional in budget forecast of Home Improvement Grant allocation, to be drawn down from existing reserve.

·         Additional project for Guildhall estate remedials drawn down from existing reserve and reflected in forecast.

 

 

RESOLVED that -

 

1. the forecast outturn position in respect of the General Fund including the impact of ongoing expenditure restraint and mitigating actions, for 2018/19 be noted;

2. the 2018/19 forecast outturn position on the Housing Revenue Account be noted;

3. the forecast in respect of the Schools Budget and the Dedicated Schools Grant (DSG) for 2018/19 be noted;

4. the forecast outturn position in respect of the capital programme for 2018/19 to 2021/22 be noted;

5. the changes to the capital programme set out in paragraphs 56 to 62 of the agenda report be noted;

6. Any additional business rate income from the pool pilot that is not required to deliver a balanced budget in 2018/19 is put into the general fund reserve at the year end.

 

Voting – Unanimous

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