Agenda item

Quarter 2 Budget Monitoring 2019/20 & Updated Medium Term Financial Plan

Decision:

*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 financial forecast be noted.

 

2.   That the changes to the medium term financial forecast, as outlined in section 4 and section 6 of the officer’s report, be approved.

 

3.   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.

 

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

 

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

 

6.   That the position of the Housing Revenue Accounts budgets, as detailed in section 8 of the officer’s report, be noted.

 

7.   That the budget preparation guidelines, as set out in paragraph 9.1 of the officer’s report, be approved.

 

8.   That the planned approach to budget consultation, as detailed in paragraph 9.3 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.

Minutes:

The Acting Chief Finance Officer presented a report outlining the Council’s budget position at the end of the second quarter of 2019/20, and the updated medium term financial forecast through 2023/24.

 

A revised year end deficit of £203k had been reported to members on 17 July, 2019. At the end of the second quarter, the deficit had changed to a surplus of £52k (forecast position) at the year end.

 

A table containing the key variances that had contributed to the improved budget position was included in paragraph 4.1 of the officer’s report. The variances included additional income from the Derbyshire Building Control Partnership and reduced expenditure due to vacant posts in the Spirepride and building cleaning services.

 

The report noted the anticipated movement in the council’s reserves. An uncommitted balance of £1.073m remained in the budget risk reserve and service improvement reserve however there would be significant demands on these reserves in the future to fund investment in transformation projects and staffing restructures.

 

The General Fund Capital Programme was forecast to receive £4.5m from capital receipts in 2019/20. Further capital receipts from land and property sales would need to be identified beyond 2020/21 to fund new capital projects and reduce the pressure on the General Fund revenue budget.

 

The Housing Revenue Account budget was detailed in section 8 of the officer’s report. It was noted that the HRA Business Plan would be reviewed shortly, which would lead to revisions needing to be made to both the HRA revenue and capital budgets.

 

*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 financial forecast be noted.

 

2.   That the changes to the medium term financial forecast, as outlined in section 4 and section 6 of the officer’s report, be approved.

 

3.   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.

 

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

 

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

 

6.   That the position of the Housing Revenue Accounts budgets, as detailed in section 8 of the officer’s report, be noted.

 

7.   That the budget preparation guidelines, as set out in paragraph 9.1 of the officer’s report, be approved.

 

8.   That the planned approach to budget consultation, as detailed in paragraph 9.3 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.

Supporting documents: