Members of the Committee are requested to bring their copy of the agenda for the Executive meeting on 27 March 2019.
Minutes:
The Committee considered the following reports on the Part 1 agenda for the meeting of the Executive on 27 March 2019:
(5) BUDGET MONITORING 2018/19
Report FSD19039
The Committee considered a report providing the third budget monitoring position for 2018/19 based on expenditure and activity levels up to the end of December 2018. The report also highlighted any significant variations which would impact on future years as well as any early warnings that could impact on the final year end position.
Noting the challenges around bridging the future budget gap, the Chairman stressed the need to identify extra savings in order to provide for a contingency for future years.
In response to a question concerning the drawdown of £500k from central contingency for the Transformation Programme, the Director of Finance confirmed that there was funding in earmarked reserves for invest-to-save initiatives and this funding would be required in future for any projects arising out of the Transformation Programme.
The Director of Finance also confirmed that it was likely that the investment cost of the Council’s Housing transformation strategy could exceed £7.5m and schemes would need to be reviewed and future options considered for the longer-term.
A Member highlighted the sum of £500k included in the central contingency from the additional savings and income expected to be generated from the incentivised work undertaken by Cushman and Wakefield. However, the Member emphasised the Council should have itself been in a position to identify the one-off refunds on past years business rates across a range of Council properties at an earlier stage.
The Committee reminded Officers that where acronyms were used they should initially be spelt out for clarity.
RESOLVED: That the Executive be recommended to:
1. consider the latest financial position;
2. note that a projected net overspend on services of £648k is forecast based on information as at December 2018;
3. consider the comments from Chief Officers detailed in Appendix 2 of the report;
4. note a projected variation of £221k credit from investment income;
5. note a projected variation of £826k in the Central contingency;
6. note a projected increase to the General Fund balance of £1,068k;
7. agree to the release of £376k from the 2018/19 Central Contingency relating to additional savings and income from the Amey contract;
8. agree to the release of £200k for the staff merit award from the 2018/19 Central Contingency;
9. agree to the release of £200k for Civic Centre improvements from the 2018/19 Central Contingency to an earmarked reserve;
10. agree to the release of £500k for the Transformation programme from the 2018/19 Central Contingency to an earmarked reserve;
11. note the return to contingency of £227k of additional grant to the 2018/19 Central Contingency;
12. note the return to contingency of £500k of grant to the 2018/19 Central Contingency and the recommended use of this grant;
13. agree to set aside £187k of the Adult Social Care grant for the implementation of Pre Paid cards in 2019/20;
14. note the release of £744k Adult Social Care grant income from the 2018/19 Central Contingency;
15. agree to the release of £1,190k for Social Care Investment to ease NHS Winter pressures from the 2018/19 Central Contingency;
16. recommend to Council that £7.5m be set aside in the Housing Investment Fund earmarked reserve from underspends in the 2018/19 Central Contingency for the Council’s Housing transformation strategy;
17. note that reports elsewhere on the agenda request the drawdown of £2,489k relating to Housing from the central contingency;
18. note the Dedicated Schools Grant balance, the increased funding and the use of that funding in 2019/20;
19. agree to allocate £75k from the Growth Fund to cover the costs of the West Wickham BID project;
20. agree that a sum of £900k be set aside within an earmarked reserve;
21. note the full year cost pressures of £6.5m;
22. identify any issues that should be referred to individual Portfolio Holders for further action.
(7) CONTINGENCY DRAWDOWN: HOMELESSNESS AND TEMPORARY ACCOMMODATION PRESSURES
Report CS18209
The Committee considered a report which provided an update on homeless numbers during 2018/19, the range of initiatives undertaken to wherever possible reduce the associated rising budget pressures, and forthcoming challenges arising from both the introduction of the Homelessness Reduction Act 2017 and the commencement of universal credit roll-out in Bromley. The report also requested drawdown of £2,489k from the central contingency for homelessness and welfare reform pressures, and the impact of the Homeless Reduction Act.
In response to a question from the Chairman, the Director of Finance confirmed that the funding had been placed in the central contingency with an expectation that there would be a report back to Members seeking the release of the funding. Effectively once the funding was release it would be built into the housing budget. This approach was taken to avoid creating a departmental underspend in the event that the funding was not required. The approach provided a degree of rigor and scrutiny as funding would only be released on the basis of justification.
The Director of Housing reported that the drawdown request was less than that initially predicted.
In response to a question from a Member, the Director of Housing confirmed that at the time the report was written there were 1,601 households placed in temporary accommodation.
A Member commended the Director of Housing for all the work she had done in relation to the management of temporary accommodation at St Benedict’s in Copers Cope Ward and as a result of this work Ward Members would be extremely positive about supporting similar schemes in the future.
The Chairman and all Members of the Committee thanked the Director of Housing for the support she provided to Members which was very much appreciated. It was noted that all Members recognised the hard work of the Director of Housing.
RESOLVED: That the Executive be recommended to release a total of £2,489k from the 2018/19 Central Contingency; £1,739k set aside to offset the current homelessness and temporary accommodation budget pressures, and £750k for the impact of the Homeless Reduction Act.
(8) CONTRACT AWARD: INSURANCE POLICIES
Report FSD19044
The Committee considered a report setting out the results of the tender process and recommending the award of contracts following the approval of the Executive on 21st May 2018 to tender for the provision of insurance policies.
In discussing the item, some Members expressed concerns surrounding the lotting structure of the tender which it was suggested had not appeared to deliver value for money. In response the Head of Adults, Health and Housing Finance confirmed that the structure of the tender and the documentation had been produced in line with advice from the Council’s broker.
Members stressed that further work was required in order to deliver value for money. As a result of this the Committee recommended to the Executive that Officers should be instructed to considered if any further work was required prior to a decision being taken.
RESOLVED: That the Executive be recommended to consider if any further work is required in order to deliver value for money.