Report by Director of Resources and Deputy Chief Executive (attached).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding Performance and Financial Management Quarter 3 of 2024/25.

The Finance Manager highlighted the following:

·         The revenue budget for 2024/25 was approved at Council on 21 February 2024 at £16,432,690.

·         As at 31 December 2024, the latest forecast net budget was £16,423,690, which produced a budget surplus of £9,000. Details are shown in “Appendix A – Variations in the Revenue Budget”

·         There was still pressure on the Temporary Accommodation budget and we were funding the anticipated additional cost of £158,000 from in year Temporary Accommodation grant.

·         As part of the previous year outturn we contributed an additional £250,000 into the insurance reserve to mitigate against higher costs in 2024/25 and it was planned to use the full £347,500 balance to offset increased insurance premiums in this financial year. We have increased the 2025/26 budget to help mitigate the estimated increased costs.

·         The original budget for 2024/25 included a forecast to achieve £250,000 worth of salary vacancy savings. The current position forecasted we would achieve £263,000 based on known vacancies to date. The £250,000 forecast was an estimate of the natural savings that would be achieved due to the timeline it took to recruit for vacant posts and new post holders to start.

·         The additional costs of £179,000 for Waste and Recycling transport and SFS lease costs had been mostly offset set in year by £170,000 from the SFS vehicle reserve. The variances were due to the increased costs of borrowing within the finance lease payments combined with an increase in vehicle purchase prices that SFS have experienced.

·         Pay and Display income had continued to follow the 2023/24 trend of slightly lower volumes, combined with the effect of the capital works being undertaken at Queen Street car park albeit we saw an increase in car park income at Green Lanes as a result of this displacement. We are now forecasting an overall £200,000 variance for the year.

·         Building Control income was still forecast to be £70,000 down on budget, but due to a number of recent larger planning applications we were now forecasting planning income to be in line with the original budget.

·         Recycling Sales had seen a downturn in quarter 3, however this was still up on the original budget and we would continue to monitor the income closely. We were expecting income receivable from recycling sales to increase once the new baler was operational.

·         We were now estimating income growth from Business Rates to be an additional £200,000.

·         As at 1 April 2024 the Collection Fund reserve balance held was £1,790,180. This earmarked reserve was created to deal with the timing impacts of the Collection Fund (Business Rates), which ensured the revenue budget was not unduly affected in the year the taxes were collected. Collection Fund deficits/surpluses were reversed out to bring the revenue account back to the budgeted figure for the year; the deficits/surpluses were recovered/distributed in the following financial years. This reserve included a £1,246,078 balance that would be utilised in 2024/25 £1,012,856 and 2025/26 £233,222 to mitigate timing differences of business rate reliefs awarded in 2023/24 that from an accounting perspective impact over the next two financial years; thus leaving the fund reserve with a residue balance of £544,099 protection against future volatility.

·         At the 31 December 2024 total external borrowing, excluding finance leases, was £6,000,000. The timing of any future borrowing was dependent on how the authority managed its treasury activity.

·         Due to project spend slippages in the Capital programme and using the cash flow balances for internal borrowing, we were estimating a reduction in borrowing costs of £152,000 and additional interest receivable of £40,000 over and above the original budget.

·         The 2024/25 Capital Programme was attached as “Appendix D – Capital Programme 2024/25” of the report.

·         The Budget and Financial Framework report to Full Council 21 February 2024 outlined the Capital Programme for the 2024/25 financial year of £20,258,368.  Project underspends from 2023/24 and further variations totalling £2,493,868 were approved as part of the performance and financial management report to Strategy and Resources Committee, to produce a revised Q2 2024/25 Capital Programme of £22,752,236.

·         Variations of (£2,562,066) were proposed to the 2024/25 Capital programme as set out in section 4.4.3 of the report.

·         The overall revised Capital Programme for 2024/25 to 2026/27 taking into account the budget variations above was £35,841,153 and broken down as follows:

Ø  2024/25          £20,190,170

Ø  2025/26          £14,439,018

Ø  2026/27          £1,211,965

·         Actual capital spend for 2024/25 as at 31 December 2024 was £10,618,860.

RESOLVED that:

(a)  The actions being taken to ensure that performance was at the desired level be noted;

(b)  The contributions to/from earmarked reserves be approved (as detailed in section 4.2 of the report);

(c)  The movement on the Strategic Contingency Reserve (as detailed in section 4.3 of the report) be noted;

(d)  Funds be released for the capital schemes listed in section 4.4.12 of the report;

(e)  The paragraphs dealing with Treasury Management (as detailed in section 4.5 of the report), and Debt Management (as detailed in sections 4.6 and 4.7 of the report) be noted;

(f)   The Corporate Plan, Key Results and Performance Indicators, (as detailed in section 5 of the report) be noted; and

RECOMMENDED that:

(g)  Council approve the variations to the Capital Programme 2024/25 to 2026/27, (as detailed in section4.4.3 of the report).