Agenda item
Quarterly Performance and Financial Management - Quarter 3 2018/19
- Meeting of Executive, Monday, 4th February, 2019 10.00 am (Item 100.)
- View the background to item 100.
Report by Leader and Executive Team (attached).
Minutes:
The Executive considered a report by the Leader and Executive Team (circulated previously), the options and/or alternatives and other relevant facts set out in the report regarding the Performance and Financial Management report for Quarter 3 of 2018/19.
The Accountancy Services Manager highlighted the following:
· As at 31st December 2018, the latest forecast net expenditure was £12.239m, which was £0.019m over budget. Details were shown in Appendix 1 and it was anticipated that the small variance could be reduced further throughout the remainder of the financial year.
· The original budget for 2018/19 included a forecast to achieve £0.200m worth of salary vacancy savings. The current position forecasts this would be exceeded and vacancy savings of £0.225m would be achieved.
· The “Recycle more” service changes were introduced on the 5th June 2017; the take up of the new garden waste service had exceeded expectations, 2017/18 saw a total sign up of 17,320. This year’s income was expected to exceed last year’s total by 570 properties.
· Within the overall £0.019m net budget deficit there were various cost pressures and one-off savings. The budget pressures seen within waste and recycling service had not increased any further at the quarter 3 forecast. There had been a significant reduction in the forecast planning fee income of £0.159m due to a reduction in the larger applications received, which was in line with other authorities experiencing the same pressure. However it was forecast there would be additional Business Rates Retention income of £0.200m over and above the budgeted £1.252m Business Rates growth which had resulted in maintaining the net budget deficit at a similar level reported at quarter 2.
· The Business Rate retention scheme was introduced in April 2013 which sees Billing authorities receive a ‘baseline’ funding but in addition they are exposed to the risks and rewards of retaining a proportion of the income collected. This exposure was mitigated by participation in the Devon-wide pool that collates all of the Business Rate growth and decline and returns a share of the impact to each local authority. There had been an estimated one-off additional income from the 100% Business Rates Retention pilot for 2018/19 of £0.750m; this additional income had been earmarked into reserves as detailed in paragraph 4.1.6 of the report to help fund future projects.
· At the 31st December 2018 the total external borrowing was £1.250m.
· The recommended level of general fund balance is 5%-10% of the council’s net revenue budget (£0.611m to £1.222m). The forecast general fund reserve at 31 March 2019 is £1.161m, which is a level of 9.5%.
· “Appendix-2 Movement in Reserves & Balances” detailed the movements to and from earmarked reserves in 2018/19.
· “Appendix-3 Executive Contingency Reserve” detailed the Executive Contingency Reserve movements and commitments.
· “Appendix-4 Capital Programme” detailed the 2018/19 to 2020/21 Capital Programme. The Programme of £12.842m was funded by Capital Receipts (£2.349m), External Grants and Contributions (£8.964m) and Reserves (£1.529m).
· Variations of (£2.254m) proposed to the 2018/19 Capital Programme as detailed in paragraph 4.4.3 of the report.
· The revised Capital Programme for 2018/19 taking into account the budget variations above was £5.529m.
· Actual spend on the 2018/19 Capital Programme, as at 31st December 2018 was £3.128m.
· Variations of £0.045m proposed to the 2019/20 Capital Programme as detailed in paragraph 4.4.6.
· The overall Capital Programme for 2018/19 to 2020/21 was £12.842m and was broken down as follows:
· 2018/19 £5.529m |
· 2019/20 £6.313m |
· 2020/21 £1.000m |
· The proposed release of funds from the 2018/19 Capital Programme as detailed in paragraph 4.4.12 of the report.
· £67,789 investment interest was earned during the three quarter period. The 2018/19 interest receivable budget was £60,000.
· £20,605 interest was paid at an average rate of 2.03% on the PWLB loans during the three quarter period. The 2018/19 interest payable budget was £40,000.
· Non-financial information was contained within paragraphs 5 to 9 in the report. Appendix 5 detailed key performance indicators and Service Plan Action updates.
In response to a question, the Executive were advised of the following:
· In relation to paragraph 4.1.6 of the report, the £0.150m would be placed in the Improvement Programme Reserve.
DECISIONS
(a) |
That the actions being taken to ensure that performance is at the desired level be noted;
|
(b) |
That the contributions to/from earmarked reserves be approved as detailed in section 4.2 of the report;
|
(c) |
That the movements on the Executive Contingency Reserve as detailed in section 4.3 of the report be noted;
|
(d) |
That funds be released for the capital schemes as listed in paragraph 4.4.12 of the report;
|
(e) |
That sections dealing with Treasury Management (paragraph 4.5), and Debt Management (paragraphs 4.6 and 4.7) be noted.
|
RECOMMENDED
(f) |
That the variations to the Capital Programme 2018/19 to 2020/21 as detailed in paragraphs 4.4.3 and 4.4.6 be approved.
|
REASONS FOR DECISIONS/RECOMMENDATION
(a) |
To ensure that appropriate action is taken to allow the council to meet its objectives.
|
(b) |
To inform the Executive of actual results compared to the approved Corporate Plan, as well as progress in delivering service within the revenue budget and Capital Programme. |
Supporting documents:
- 2019.02.04 Q3 Perf FM - Exec, item 100. PDF 599 KB
- 2019.02.04 Appendix 5 Performance Report Qtr 3 1819 V1.0, item 100. PDF 370 KB