Agenda item

(Director of Resources) to consider the attached report.

John Bell, Senior Accountant, introduced the report on the Council’s overall summary of the revenue outturn for the financial year 2016/17. The Committee noted that the General Fund saw £288,000 more than estimated being used from the opening balance. Total net expenditure on the General Fund was £14.039 million, some £787,000 higher than the original estimate and £71,000 higher than the revised estimate. Expenditure from the District Development Fund and Invest to Save Reserve was £1.643 million less than estimated.

The position on the Housing Revenue Account was £157,000 better than anticipated.

Net DDF expenditure was expected to be £698,000 in the original estimate and £1,096,000 in the revised estimate. In the event the DDF showed net income of £446,000. This was £1,144,000 below the original and £1,542,000 below the revised. There were requests for carry forwards totalling £1,301,000. These one-off projects were akin to capital, in that there was regular slippage and carry forward of budgetary provision. Therefore the only reasonable variance analysis that could be done was against the revised estimate.

The DDF increased between the Original and Revised position by £398,000, overall this was not significant but there were some large swings on both income and expenditure. On the Income side additions relating to Development and Building Control (£150,000), Various commercial and industrial rents (£122,000), various other grants and income (£86,000). There was also some reprofiling of expenditure into future years particularly in relation to the staffing costs relating to the technical agreement. Offsetting this were amounts brought forward from 2015/16 and additional resources provided for the Local Plan (£626,000),Waste and Recycling (£144,000) and an amount of £116,000 in relation to the income from the major preceptors that has been taken into the CSB.

The difference between the revised position and the outturn position was a reduction of £1,542,000. During February and March around £928,000 in grants and contributions were received which had been applied for but not confirmed in time for the budget setting process. These monies have been added to the DDF and were intended for spending in 2017/18. The largest of these is for the Garden Town funding of which £665,000 was carried forward into 2017/18. All of these grants and contributions related to the Neighbourhoods Directorate. Other income variations are: additional income from the agreement with major preceptors £158,000, unspent new burdens grant required in 2017/18 £127,000, additional commercial and industrial rents £63,000. There were also two larger underspends relating to building maintenance £92,000 and the local plan £66,000.

Spending from the Invest to Save Reserve was £219,000 which was £101,000 below the revised estimate of £320,000. There are carry forward requests of £107,000 the largest relating to the ICT infrastructure for the new car park management contract of £45,000. There was also a small overspend relating to the payment kiosks at the Civic Offices.

The Housing Revenue Account will start the new financial year in a slightly better position at £3.85 million. There was still significant uncertainty facing the HRA going forward with continued 1% rent reductions and the potential high value void levy so any addition to balances was helpful when viewed in that context.

Councillor Mohindra noted that there were some small items such as document scanning at £1000 still in there; was there some way they could be removed. He was told that the department concerned had specifically asked for this to be carried forward at the start of the process. However, Mr Bell would look back and review the figures.

Councillor Bedford wondered about the second hand fire truck mentioned in appendix ‘E’ was that figure £5,000 or £50,000. Councillor Whitehouse commented that that would be £5,000; what was left over. Mr Bell added that officers were looking for it to be carried forward to this year.

RESOLVED:

(1) That the provisional 2016/17 revenue out-turn for the General Fund and Housing Revenue Account (HRA) be noted; and

(2) That as detailed in Appendix E of the report, the carry forward of £1,301,000 District Development Fund and £107,000 Invest to Save Reserve expenditure be noted.