Issue - meetings

Report of the Chief Officer (Resources).

The Chief Officer (Resources) submitted a report regarding the Council’s current financial position for quarter 2 of the 2017/18 monitoring cycle, and the supporting actions under way.

The report outlined the head line projections as follows:

·         The General Fund net revenue budget of £15.839M had a current overspend by a net £228K, which was forecast to increase to £241K by the year end.

·         The Housing Revenue Account was also currently over by a net £274K against the original budget, and this was expected to increase to £569K by the year end.

The report noted that the key variances related to Green Waste (£290K net income shortfall) and Salt Ayre Leisure Centre (£187K net income shortfall). The main favourable variance related to staffing across all services (£226K saved) which was expected to exceed the £400K turnover target.

With regards to the Housing Revenue Account, the net overspend was being driven by increases in the cost of repairs and maintenance (£400K) and the loss of income from an increased level of voids (£169K). It was stated that voids were currently at 2.9% (against an increased original estimate of 1.9%) and that actions were being focussed on addressing the situation. It was also clarified that any overspend would be met from unallocated Housing Revenue Account budgets.

Members asked a number of questions regarding: the Green Waste service; percentage of Green Waste take up; voids; turnover of properties; sustainability of tenancies; increase in private letting; average tenancy life; Salt Ayre procurement processes; arrangements with Alliance Leisure; use of databases; social media campaigns and training/development of staff.

Resolved:

(1)    That the report be noted.