Agenda item

*RESOLVED –

That it be recommended to full Council:

1.   That the financial performance in the first half of the financial year and the new medium term forecast be noted.

2.   That the changes to the medium term forecast, as outlined in section 4 of the officer’s report, be noted.

3.   That the supplementary estimate for registration of electors, as detailed in paragraph 4.2.7 of the officer’s report, be approved.

4.   That the proposed use of reserves and the new applications for funding, as set out in section 5 of the officer’s report, be approved.

5.   That the updated capital programme, as detailed in section 7 of the officer’s report, be noted.

6.   That the proposed additions to the capital programme, as detailed in paragraph 7.2 of the officer’s report, be approved.

7.   That the position of the HRA budgets, as detailed in section 8 of the officer’s report, be noted.

8.   That the indexation of the housing repairs contract for 2017/18 onwards, as detailed in paragraph 8.1 of the officer’s report, be approved.

9.   That the application for 75% Business Rates Pilot status for 2019/20, as detailed in section 9 of the officer’s report, be noted.

10.   That the budget preparation guidelines for the financial year 2019/20, as detailed in paragraph 10.1 of the officer’s report, be approved.

11.   That the approach to budget consultation, as detailed in paragraph 10.3 of the officer’s report, be approved.

REASON FOR DECISIONS

To actively manage the Council’s finances in the current financial year and forecast forward the emerging budget position to future financial years.

The Director of Finance and Resources presented a report outlining the Council’s budget position at the end of the second quarter of 2018/19, and the updated medium term financial forecast through 2022/23.

A revised year end surplus of £298k had been reported to members on 17 July, 2018 as part of the month 2 budget monitoring. Revised figures at the end of the second quarter were now forecasting a deficit of £130k at the year end.

The council had recently informed HMRC of the intention to implement Sporting Exemption from VAT on its sports centres; this would be implemented from August 2018 and was expected to save £200k in 2018/19 and £300k in future years. However, employee costs at the two sports centres had risen and significant income streams had not achieved their expected levels; the assistant director for health and wellbeing was putting in place a number of measures to remedy the position. A table containing all the key variances was included in section 4 of the officer’s report.

The report noted the anticipated movement in the council’s reserves. An uncommitted balance of £869k remained in the budget risk reserve and the service improvement reserve, however there would be significant demands on these reserves in the future to fund budget deficits, investment in transformation projects and staffing restructures.

The report provided details of the General Fund Capital Programme; the capital receipts were forecast to bring in £1.9m for 2018/19. The Director of Finance and Resources advised that further large capital receipts needed to be identified beyond 2019/20 to avoid putting further pressure on the General Fund.

The Housing Revenue Account Budget was detailed in section 8 of the officer’s report and it was noted that the Housing Revenue Account Business Plan would be reviewed to take into account changes to the repairs spend.

RESOLVED –

That it be recommended to full Council:

1.   That the financial performance in the first half of the financial year and the new medium term forecast be noted.

2.   That the changes to the medium term forecast, as outlined in section 4 of the officer’s report, be noted.

3.   That the supplementary estimate for registration of electors, as detailed in paragraph 4.2.7 of the officer’s report, be approved.

4.   That the proposed use of reserves and the new applications for funding, as set out in section 5 of the officer’s report, be approved.

5.   That the updated capital programme, as detailed in section 7 of the officer’s report, be noted.

6.   That the proposed additions to the capital programme, as detailed in paragraph 7.2 of the officer’s report, be approved.

7.   That the position of the HRA budgets, as detailed in section 8 of the officer’s report, be noted.

8.   That the indexation of the housing repairs contract for 2017/18 onwards, as detailed in paragraph 8.1 of the officer’s report, be approved.

9.   That the application for 75% Business Rates Pilot status for 2019/20, as detailed in section 9 of the officer’s report, be noted.

10.   That the budget preparation guidelines for the financial year 2019/20, as detailed in paragraph 10.1 of the officer’s report, be approved.

11.   That the approach to budget consultation, as detailed in paragraph 10.3 of the officer’s report, be approved.

REASON FOR DECISIONS

To actively manage the Council’s finances in the current financial year and forecast forward the emerging budget position to future financial years.