Issue - meetings

RESOLVED – That Executive notes -

(1)          the monitoring position of the General Fund at the end of the second quarter as detailed on Appendix 1 to the report (A net favourable variance of £1.538m against the profiled budget) and the key issues highlighted within the report.

(2)          the position on the Housing Revenue Account, the Capital Programme and Treasury Management at the end of the second quarter (Appendices 2, 3 and 4 to the report).

Executive considered the report of the Portfolio Holder – Finance & Resources which provided an update on the financial position of the Council following the second quarter’s budget monitoring exercise for the General Fund, the Housing Revenue Account (HRA), Capital Programme and Treasury Management activity.

General Fund

The overall position on the General Fund at the end of Quarter 2 showed that there was a favourable variance of £1.538m. This was mainly an issue of timing with a combination of receiving income in advance of spend and under spends due to not receiving invoices yet, for the year.

It was noted in the report that although the budget shortfall for 2019/20 had been met, there was still a need for on-going savings. The shortfall in future years was to be reduced by the efficiencies that had been identified but not yet realised. This included estimates of growth for business rates and council tax as well as transformation programmes.

Members queried work being done to address the underspend in Disabled Facilities Grants and were advised that the Environmental Health team were working proactively with the County Council to speed up the process.

Housing Revenue Account (HRA)

At the end of Quarter 2, the HRA was showing a net surplus of £0.894m. There were no significant issues to report in respect of this period.

Capital Programme

In headline terms, the Capital Programme profiled budget for Quarter 2 was £7.825m and the actual spend and known commitments totalled £5.123m, which was £2.702m behind the planned spend position. The areas of the programme which had underspent were listed in the report.

There were no significant financial issues to report regarding capital expenditure, however it was noted that the delivery of the approved Capital Programme was behind the profiled position as at this half year point. Officers were to continue to review the programme as part of the revised budget process and re-profile expenditure on schemes to future years as appropriate where funding allows.

Treasury Management

The Treasury Management activity undertaken in the second quarter of 2019/20 was in line with the plans agreed as part of the Treasury Management Strategy 2019-2023. The income received from investments was higher than budgeted, however, interest rates were variable and therefore it was too early in the financial year to predict if this trend would continue. A full assessment of this was to be carried out during the next quarter with a view to amending budgets accordingly.

Moved by Councillor Clive Moesby and seconded by Councillor Sandra Peake

RESOLVED – That Executive notes -

(1)          the monitoring position of the General Fund at the end of the second quarter as detailed on Appendix 1 to the report (A net favourable variance of £1.538m against the profiled budget) and the key issues highlighted within the report.

(2)          the position on the Housing Revenue Account, the Capital Programme and Treasury Management at the end of the second quarter (Appendices 2, 3 and 4 to the report).

REASON  ...  view the full minutes text for item 436