Issue - meetings

The Portfolio Holder for Corporate Finance and Resources to provide a report to Members to:

1)    advise that as part of the Council’s budget monitoring procedures all budget holders are asked on a quarterly basis to provide details of service and financial performance. Copies of the budget holders' returns are available for further information;

2)    advise that As at 30th June budget holders are forecasting the following financial position  against their 2019/20 budgets:

General Fund            £1,000     Overspend

Special Expenses             £0     On Budget

3)    advise that in addition to formal Quarterly reporting to Cabinet, the budget position is reported monthly at the Strategic Leadership Team. This is to ensure any early warnings that highlight pressures can be collectively resolved.

DECISIONS

Cabinet NOTED the year end forecast and financial position for the General Fund and Special Expenses at 30th June 2019.

Reasons for decision:

The Council, having set a Budget at the start of the financial year, needs to ensure the delivery of this Budget is achieved. Consequently there is a requirement to regularly monitor progress so corrective action can be taken when required which is enhanced with the regular reporting of the financial position.

In the absence of Councillor Ronnie de Burle, Portfolio Holder for Corporate Finance and Resources, Dawn Garton Director for Corporate Services introduced the report the purpose of which was to report the quarterly budget position to Cabinet.

Mrs Garton provided a brief summary of the report confirming that the current forecast was for a break even position, the budget was regularly reviewed in order to ensure the balanced position was maintained.  It was proposed that additional investment income of £61k be transferred to a reserve to cover any future book losses on Property Fund investments.

During discussion the following points were noted:

1. Clarification was requested with regards to the reserve for any future losses on the Property Fund.  It was confirmed that subject to members approval, the reserve was intended for this purpose only.  This would allow the Council to continue to benefit from the from high returns on the investment whilst maintaining funds to mitigate against any potential losses on the book value of the  investment at the year end. The consideration of whether to establish this reserve would be the subject of a future decision.
2. The overspend in the budget for elections had resulted from more Wards being contested than anticipated, but a significant proportion of the overspend had been the result of improvements made to the count process.  Members felt that in future the budget should be set on the basis that all Wards could be contested and noted that costs from Parish Councils would alleviate the position.
3. The income target of £33,620 in the Sports and Leisure Development budget had been highlighted as a risk.  It had been agreed to create a new post which would generate income in order to cover the additional costs.  It did not look likely that the income target would be achieved, which could result in a shortfall of £15,000.
4. Members also expressed concerns regarding the decreasing levels of grant funding received from the County Sports Partnership.  Mrs Garton would confirm the levels of external funding in the Sports and Leisure Development Budget.
5. Declining footfall in the town centre was a concern in relation to its impact on income, in particular the shortfall in car parking income.

DECISIONS (NON-KEY)

Cabinet NOTED the year end forecast and financial position for the General Fund and Special Expenses at 30th June 2019.

Reasons for decision:

The Council, having set a Budget at the start of the financial year, needs to ensure the delivery of this Budget is achieved. Consequently there is a requirement to regularly monitor progress so corrective action can be taken when required which is enhanced with the regular reporting of the financial position.