Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
For Cabinet to note the report and agree a number of recommendations in relation to the revenue and capital budget monitoring.
The Corporate Director – Resources presented the second Budget Monitoring Report to Cabinet for 2014/15 which set out the Council’s financial position at 30 September 2014; covering the Revenue Budget, Capital Programme, Treasury Management and Debt Recovery. Cabinet received the report each quarter and Directorate and Corporate Management Teams received detailed reports monthly.
The Deputy Leader acknowledged the efforts which would deliver 94% of the budgeted savings for the year and the continuing activity to bring budgets in on target for the year end. The savings the Council faced delivering over the coming three years would be no less challenging and would total a further £84m.
The Leader confirmed that the projected overspend would be addressed by directorates and be brought back into line by the end of the financial year. He advised that whilst ultimately a matter for the Council it was likely that local member scheme underspends would be carried forward and likewise those relating to neighbourhood forum grants. He advised that a further £950,000 savings would need to be delivered as a result of not implementing the on-street parking proposals.
(a) the current Revenue Budget for monitoring purposes of £402.290m as a result of the transfers from the Inflation and Contingency budget and agreed transfers from reserves (set out in Appendix 1) be noted;
(b) the current forecast year end position of a net pressure of £1.878m be noted;
(c) the forecast in delivering new 2014/15 savings of £26.223m against the target of £27.894m (ie £1.671m under achievement) and forecast in delivering existing savings of £0.395m against the target of £1.045m (set out in para 4.15 and Appendix 2) be noted;
(d) the forecast General Reserve at 31st March 2015, of £13.255m. This is below the target of £15.000m agreed by Council in February and is due to the forecast net pressure for the year be noted;
(e) the virements within the Health and Care Services budgets (detailed in Appendix 3(2))to reflect changes in reporting structure from a ‘client type’ structure to a ‘Primary Support Reason’ structure and responding to known budget pressures be approved;
(f) the reprofiling of the £1.464m DFT Pinchpoint scheme from 2014/15 to 2015/16 with expected completion in May 2015 be RECOMMENDED to Council;
(g) the increase of £0.113m in the capital programme due to scheme specific additional contributions being received (para 4.22) be approved;
(h) the updated Capital Programme for 2014/15 of £114.788m excluding the Accountable Body programme of £9.942m be noted;
(i) the virement of £0.131m from the Bridges and Structures programme to the Windermere Ferry refit scheme be approved;
(j) the forecast year end position for the Capital Programme 2014/15 of £97.713m resulting in a forecast variance of (£17.075m) which is made up of (£22.616m) slippage and £5.541m accelerated spend, as set out in Table 3 be noted;
(k) the write-off of irrecoverable debts (£161,561.01) in excess of £10,000 per item as set out in Para 4.35 and Appendix 7 be approved;
(l) note Treasury Management activities in Quarter 2 have operated within the treasury limits set out in the Council’s Treasury Policy Statement and Treasury Strategy Statement and the Prudential Indicators set by Council in February 2014 and reported to Council at its November meeting.
Report author: Pam Duke
Publication date: 23/12/2014
Date of decision: 18/12/2014
Decided at meeting: 18/12/2014 - Cabinet
Effective from: 03/01/2015