Agenda item

Report FSD16040

Report FSD16040 provided a broad overview of the Council’s provisional 2015/16 financial outturn both Council-wide and at portfolio level. Potential implications for 2016/17 were also summarised.

More detailed reports would be submitted to individual PDS Committees and the Education Budget Sub-Committee. Details of carry forward requests and a summary of the Council’s capital programme were also included in the report.

The Portfolio Holder for Resources highlighted notable features including:

·  development of a database to hold Contract Register and other related information as an important step forward;

·  action following data matching on single person discounts contributing to a 2015/16 Council Tax surplus on the Collection Fund (along with good debt recovery levels, more new properties in the borough and the impact of the council tax support scheme being lower than budgeted);

·  use of remaining underspends, including those in Central Contingency, to provide one-off funding for the Council’s Growth Fund (providing investment for economic development and additional income through business rate growth, investment income and new homes bonus), the Council needing to be dependent upon its own income by 2020;

·  no expected variation to the level of general reserves as at 31^st March 2016 for General Fund balances;

·  an increase of £1.5m against budget in the outturn for interest earnings on balances; and  

·  Growth Fund investment.  

Carry forward of £89k from a £200k Central Contingency provision in 2015/16 for exceptional performance reward would be additional to the amount provided for 2016/17. Concerning income from s106 payments, the Leader highlighted a need to continually review how s106 monies are being used. In a housing context, the Portfolio for Renewal and Recreation suggested use of s106 monies for proposed housing at Site G.

Councillor Vanessa Allen (Clock House) highlighted the Labour Group’s opposition to reduced funding levels for social services and suggested that budgets should be fully spent rather than transfer underspends to the Growth Fund. Cllr Allen suggested there were many other ways for the Council to generate income (instead of a Growth Fund) such as more joint venture schemes in housing.  

The Leader emphasised the necessity of gatekeeping and containing expenditure and there was no suggestion in transferring monies to the Growth Fund that budgets were being reduced.

RESOLVED that:

(1)  the provisional revenue and capital outturns for the 2015/16 financial year, and the earmarked balances on the General Fund as at 31st March 2016, be noted;

(2)  a more detailed analysis of the 2015/16 final outturn be reported for each Portfolio to PDS committees;

(3)  the variations in 2015/16 impacting on the Council’s 2016/17 financial position be noted;  

(4)  comments from the Education, Care and Health Services Department, the Director of Transformation and Regeneration, and the Executive Director of Environment and Community Services, as detailed at Appendix 1B to Report FSD16040, be noted;

(5)  the carry forwards of £301k related to repairs and maintenance, approved under delegated authority as detailed at Appendix 5 to Report FSD16040, be noted; 

(6)  the requests for carry forwards totalling £1,401k (net) as detailed at Appendix 5 to Report FSD16040 be approved, subject to the funding being allocated to Central Contingency to be drawn down on approval from the relevant Portfolio Holder;

(7)  a total of £589k funding be released from Central Contingency as detailed at paragraph 3.2.1 of Report FSD16040;

(8)  the return to Central Contingency of £45k as detailed at paragraph 3.2.2 of Report FSD16040 be noted;

(9)  a sum of £97,400 be set aside from the 2015/16 underspends in Central Contingency as detailed at paragraphs 3.2.3 and 3.2.4 of Report FSD16040;

(10) the Prior Year Adjustments totalling £1,577k, as detailed at section 3.4 of Report FSD16040, be noted; and

(11) Council be recommended to approve the transfer of £7,024k to the Growth Fund as detailed at section 4.2 of Report FSD16040.