Agenda item

To consider the attached report (FPM-016-2018/19).

The Assistant Director Accountancy presented the second quarterly financial monitoring on key areas of income and expenditure for 2018/19, which covered the period from 1 April 2018 to 30 September 2018. The report provided details of the revenue budgets for both Continuing Services and the District Development Fund, Capital budgets and Major Capital Schemes. The reports were presented in the new directorate structure.

The salaries monitoring data was presented in the previous directorate structure, due the complexity and showed an underspend of £140,000 or 1.1%.

The Assistant Director Accountancy updated members on the following Service Areas;

·                     Planning Service Area - Development Control was well above expectations with fees and charges £139,000 higher than budgeted and other pre-assessment charges £23,000 higher than expected.

·                     Commercial and Regulatory Service Area -  Building Control income was £13,000 higher than the budgeted and the opening position on the ring-fenced account had a surplus of £111,000 after a £4,000 deficit last year. The account was budgeted to show an in year deficit of £87,000, although this would be lower than expected and adjusted during the budget process. Licencing income was below expectations but there were a significant number of renewals due.

·                     Contracts and Technical Services Area - Income from MOT’s carried out by Fleet Operations was below expectations by around £17,000. The Car Parking income was up by £6,000 and the recycling credit income was still very slow and difficult to get the County Council to agree the figures. Income was well behind expectation at month 6 and there was an adjustment necessary to 2017/18 figures, also to be accounted for in 2018/19. The waste contract expenditure had fallen behind due to late invoicing and the leisure management contract showed a reduction in income due to some unexpected pension related expenditure.

·                     In the Business Services Area - The Local Land Charge income was £9,000 below expectations and had marginally improved.

·                     Housing and Property Service - Bed and Breakfast income and expenditure had been begun to increase again. The main underspend on the HRA related to special services and was a combination of late Biffa invoicing, reduced utility costs and caretaking and cleaning. The Housing Repairs Fund expenditure was surprisingly close to the profiled budget.

In addition the proposed retention of 75% of Business Rates within local government sector would take effect from 2020/21 and it was possible that it would be accompanied by additional responsibilities. The Council was part of the Essex authorities bid to Central Government, to become a 75% retention pilot for 2019/20 and the outcome was expected on 6December 2018.

Furthermore, the Council benefited from the cash collection requirements and held onto £1,791,216 of non-domestic rates.

There were four projects included on the Major Capital Schemes which related to the House Building packages 2 and 3, the new Hillhouse Leisure Centre and refurbishment works at Loughton Leisure Centre.

The Cabinet Committee enquired whether a recent decision from the Court of Appeal, which judged in favour of retailers seeking to avoid ATM sites being treated as separate property units for business rates purposes, would affect the Council. The Assistant Director Accountancy advised that he would investigate this ruling with the Customer Services Service Director.

The Cabinet Committee also pointed out that the Fleet Operations had a recurring loss. The Acting Chief Executive advised that the associated costs subsidised the maintenance of the Council’s fleet and therefore recharges would increase.

Resolved:

That the Revenue and Capital Financial Monitoring report for 1 April 2018 to 30 September 2018 be noted.

Reasons for Decision:

To note the second quarter financial monitoring report for 2018/19.

Other Options Considered and Rejected:

No other options available.