Agenda item

A report of the Head of Finance and Property Services to assist the Committee in monitoring the General Fund and HRA Revenue position (Period 4 2019/20).

Considered a report of the Head of Finance and Property Services to assist the Committee in monitoring the General Fund and HRA Revenue position (Period 4 2019/20) (item 7 on the agenda filed with these minutes).

Assisting with consideration of the report: Cabinet Lead Member for Finance and Property Services, Strategic Director of Corporate Services, Head of Finance and Property Services.

Summary, key points of discussion:

(i)        Noted that a further monitoring report (Period 7 2019/20) programmed for consideration by the Committee on 3rd December 2019.

(ii)       Reference was made to the recent change to budgeting for managed savings and the importance of finding those savings during the year and not relying on underspend, in particular a concern that 4 months of the year had already passed to achieve that.

(ii)     Discussion regarding Brexit Grant, £35k received to date, more expected October 2019, not budgeted for.  Not allocated to specific costs at this stage, most likely that it would be needed for something the Council needed to react to, associated staffing or communications.  Arrangements in place for Brexit planning were briefly outlined. 

(iii)    Agenda page 56, Table C, concern that current tenant rent arrears (dwellings) might be increasing year on year.  Particular reference to 24 tenants being £2,000 or more in arrears.

(iv)    Although beyond the period of the draft Medium Term Financial Strategy 2020-2023, the Council was aware of the potential risk to income of legislative changes to make statutory the collection of garden waste.

(v)     Reference was made to a late in year virement of budget to meet agency worker costs in the Planning and Regeneration Service in 2018/19 and the wish not to see that repeated, where the expenditure was apparent earlier in the year.  The authorisation required for such virements, dependent on the amount, was briefly outlined.

(vi)    Car park income reduction noted, Committee would look at again when considering Period 7 monitoring report to see if the trend was continuing and, if so, possible reasons.

(vii)   Brief discussion regarding Town Hall overspend, seasonal nature of income, importance of annual pantomime, better idea of how performing towards end February.

(viii)  Noted that this Committee might wish at some point to review the Council’s management of its assets, also that the Scrutiny Commission had decided not to undertake pre-decision scrutiny of the Investment Strategy (Cabinet 19th September 2019) and that it had agreed an informal scrutiny panel to consider generating commercial income, to be chaired by Councillor Baines.

(ix)    Noted that, where tenants had 8 weeks of arrears or were vulnerable, a dedicated Landlord Services Universal Credit officer was making applications to the Department for Work and Pensions to switch payment of the housing element of Universal Credit from the tenant to the Council, this was welcomed.  Council’s Lifeline service commended, importance to service users and as income to Council.

The Head of Finance and Property Services agreed to check whether the arrears referred to in (iii) above had seen an increase year on year and email a response to Councillor Boldrin in that respect.

The Head of Finance and Property Services also agreed to check why the due diligence costs for Limehurst Depot had not been budgeted for and to email a response to the Committee in that respect.

The Democratic Services Officer agreed to ask the Head of Landlord Services for an explanation of the term “void percentage for Central Heating” and to email a response to the Committee in that respect.

RESOLVED

1.         that officers be asked to note the Committee’s concern that budgeted for managed savings (Managed Savings Budget Non Salaries, £300k) are found during the year and that the Period 7 monitoring report to be considered by the Committee at its next meeting (3rd December 2019) provides an explanation of how that is in hand;

2.      that the Committee’s concern that late in year virements of budgets are not appropriate where the expenditure concerned is apparent earlier in the year be noted, and the current position in that respect be checked at the request of the Chair; 

3.         that the report setting out the General Fund and HRA Revenue position at Period 4 2019/20 be noted.

Reasons

1.         Although the Committee was assured at this meeting that the Council’s Senior Management Team was aware of the need to find the savings and was working to ensure that, the Committee wished to both highlight the importance of doing so during the year (in particular, not relying on possible year end underspend) and to continue to monitor the position in that respect.

2.      To record the Committee’s concern regarding the matter and to ensure that the Council is working to avoid such late in year virements, where possible.

3.      The Committee’s remit included receiving regular financial monitoring reports and, having considered the revenue position and made observations and requests for further information as outlined above, it was content to note it.