Agenda item

The Head of Central Services to submit a report to provide Members with information on the provisional year end position subject to external audit approval for 2016/17 and to provide Members with information on the implications for the Council’s balances and reserves.

 

(The Head of Regulatory Services here left the meeting.)

 

The Head of Central Services submitted a report to provide Members with information on the provisional year end position subject to external audit approval for 2016/17 and to provide Members with information on the implications for the Council’s balances and reserves.

 

The Central Services Manager explained that he would take the report in two parts to split the revenue outturn and the reserve position at provisional year end, which would be in the form of a presentation.

 

The net position against the year end position for the main funds was highlighted and the General Fund General Expenses has an underspend of £417,046. The Special Expenses (Melton Mowbray) has a net transfer after surplus/deficit of £25,534 and the Housing Revenue Account has an underspend of £127,023.

 

The carry forwards previously approved at the Committee on 12 April 2017 which totalled £302,760 for general expenses and £15,830 for Special Expenses has been reduces to £278,380 and £11,900 respectively, once the final accounts have been completed and the actual underspends are known. As such this reduces the underspend against the estimated year end position on general expenses from £417,046 to £138,666 and net transfer to the reserve from £25,534 to £13,634 on Special Expenses. The key variances are on:

·  Project work – mainly relating to the commercialism pilot which straddles 2 financial years with the underspend being carried forward and funds provided to support the Cattle Market redevelopment which are also being carried forward.

·  Benefits- there has been an underspend on both rent rebates and rent allowances of circa £94k.

·  Information Technology- there has been a number of saving initiatives achieved.

·  Reduced Costs – In general there have been a number of savings such as a refund in Internal Audit Fees, reduced use of professional fees for legal services as well as additional income generated for legal work.

·  Staffing – there has been a number of vacancies across services areas which has resulted in a underspend.

·  Income – the Council has seen an increase in some key income streams such as development control, rents and services at Parkside and investment income.

·  Transformation – there is still an identified sum of £65k to be saved which will carry forward into 2017/18

·  Additional costs - along with the reduced costs, savings and additional income generated, these have been partly offset by some additional costs elsewhere. These include staffing costs and loss of contributions for supporting people and reduced income from Land Charges.

 

Overall despite continued funding pressures the Council as a whole has managed its budgets prudently which is evident in the underspend position for the year.

 

A Member was not happy with the figures and feels that the Council are overspending and running reserve balances down.

 

The Central Services Manager distributed a paper copy of a presentation and a Statement of Revenue and Capital Reserves which he talked Members through the reserves section of the report and to address the concerns on the reserve balance position.

 

A Member stated that it is nice to do things if we have money but the Council does not and stated that the Council needs to be savvier with spending. It was agreed that tough decisions need to be made but the Council has the opportunity to maximise funding through the Leisure Vision and Commercialisation programmes.

 

It was confirmed that the Public Conveniences will be paid for from the capital receipts but the revenue payback period would be 5 years to get the money back through the revenue account. A Member queried if it is anticipated that the same number of people would pay for the toilet as they do now. It was explained that the Public Conveniences will be semi-automatic and not fully automatic and it is anticipated that visitors to the town will use the facilities more than the residents, however the new facilities would be more accessible and it is felt they will be well used particularly with the increase in footfall to the town.

 

Concerns were raised by Members about the tourism in Melton and the Head of Communities and Neighbourhoods explained that the Officers recognise the importance of the economics in Melton and are looking at enhancing the Tourism Officers role.

 

Members also raised concerns about 7 King Street and highlighted that it is empty again and no one has looked at the roof since the refurbishment. Officers explained that they are actively looking for a rental income and restrictions on the disposal were put in place as part of the grant conditions of the refurbishment.

 

The Central Services Manager reassured Members that the council was in relatively stable financial positon and was well placed to meet the financial challenges ahead. The Council has set a balanced budget for a number of years now without the need to use reserves to balance the budget. The level of the corporate priorities reserve was at a similar balance to 3 to 4 years ago. It was highlighted that the efficiency plan is in place to help meet the medium term financial challenges however this comes with caution and we need to be mindful to work together to achieve the savings required.

 

All recommendations were moved by Councillor Orson and Councillor de Burle seconded.

 

The motion was carried with a majority vote.

 

RESOLVED that:

 

1) The provisional year end position, variations to the 2016/17 estimated year end position and the resultant effect on the Council’s balances and reserves be noted.

 

2) In line with the principle established last financial year a contribution of £138,000 be made to the Spending Pressure Reserve to help meet future funding pressures as outlined in para 3.8 to be funded through a transfer from the Corporate Priorities Reserve.

 

3) Supplementary estimates for those services which are overspent against the approved budget as attached at Appendix A and outlined in para 3.12 be approved.