Agenda item

To consider the contents of the report and make any comments on the Council’s financial results and budget exceptions.

The Committee received the report of the Chief Finance Officer which asked the Committee to consider the contents of the report and make any comments on the Council’s financial results and budget exceptions.

Members noted that after carry forward requests the Council’s year end results for 2018/19 showed a surplus of (£59k) on the General Fund against budget. There were a number of variances (positive & negative) which made up the surplus, including: a shortfall on planned savings, in year staffing savings, lower planning income, changes in waste and recycling income and higher investment income. It was proposed that the surplus be transferred to the Contingency Reserve to support future spending needs.

Officers explained that the Housing Revenue Account showed a significant surplus of (£753k), which was mainly driven by lower external borrowing requirements due to delays in progressing the housing development programme. The surplus would be transferred to the Major Repairs Reserve to help fund future capital expenditure.

The Committee acknowledged that planned savings for the year were achieved in the Housing Revenue Account. However, General Fund savings had fallen short by £225k as some initiatives had slipped into 2019/20.

Members noted that capital programme spend had been significantly under budget as a number of projects had experienced delays and were to be carried forward into 2019/20. After assumed carry forwards, a saving of (£688k) had been achieved - (£91k) General Fund and (£597k) Housing Revenue Account. The General Fund saving related to a low take up from the private sector for Repair Loans for emergency repairs and planned works to the leisure centre not being required. In the Housing Revenue Account, Byram Park Road project has been completed with a saving of (£597k), primarily due to receipt of a grant to help fund the project.

The Programme for Growth (P4G) continued with the programme set and approved by Members. In 2018/19 spending had totalled £2.005m with a further £7.859m of funding rolling into future years. The P4G projects were to be delivered over multiple years, and were therefore shown in the report as total project value rather than in year delivery.

Members queried the number of council houses that had been delivered and the delay to the adoption of a road at some Council owned industrial units. Officers explained that there had been issues around the road adoption which had caused some problems. With regards to the net delivery of council homes, there had been 13 in 2018-19 and 15 in 2017-18; it was acknowledged that this needed to improve and that upcoming work on revision of the Council’s Housing Revenue Account (HRA) Business Plan would address the matter further.

Officers acknowledged that the Council’s Housing Development Programme had been delayed but that different package schemes were being explored in order to get better value for money; Members were pleased to note that the money set aside for affordable housing was in the Council’s reserves and could not be used for any other projects.

The Committee acknowledged that any surpluses in the HRA went back into it for the capital programme.

Officers confirmed that the disposal of council homes was though the Right to Buy Scheme, which the Council could not control because tenants that were eligible to purchase their homes could do so if they so wished.

Lastly, Members queried the amount of rent that Align Property Services, who had recently moved in to the Civic Centre offices, were paying; Officers confirmed that the rent was £12k a year.

RESOLVED:           

To note the Council’s financial results and budget exceptions to 31 March 2019 (Quarter 4).