Agenda item

(Cabinet Members with Special Responsibility Councillors Blamire & Newman-Thompson)

Report of the Chief Officer (Resources)

(Cabinet Members with Special Responsibility Councillors Blamire and Newman-Thompson)

Cabinet received a report from the Chief Officer (Resources) which provided summary information regarding the provisional outturn for 2014/15.  It set out information regarding the carry forward of capital slippage for Members’ consideration and incorporated the treasury management outturn report and related matters.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

The City Council has a legal requirement to ensure that its expenditure is fully funded and to produce accounts in accordance with proper accounting practice.  In addition, the Prudential Indicators are a statutory requirement linked to the budgetary framework.  For these aspects, therefore, there are no alternative options for Cabinet to consider.  Members are being asked to endorse certain actions taken by the Chief Officer (Resources), and Cabinet should consider whether it has sufficient information to do so or whether it requires any further justification.

The report requests Cabinet to consider a number of capital slippage items.  The framework for considering these is set out in the report but basically Cabinet may:

-          Approve any number of the items / requests, in full or part.

-          Refuse various requests and if commitments have already been incurred, require alternative funding options to be identified.  Cabinet should note, however, that this may impact on other areas of service delivery.

-          Request further information regarding them, if appropriate.

On the assumption that the Council continues to support its previously approved spending plans, then the Officer preferred options are to approve the capital slippage requests (Appendix G to the report).

Although the Council’s General Fund budget and the associated Government funding reduced again in 2014/15, it continued to manage the financial pressure well, and has again improved its overall financial standing as at 31 March 2015.  Similarly, the HRA’s standing is sound.  Balances for both General Fund and the HRA are higher than forecast, and the Council has other substantial earmarked reserves to help respond to the tough financial challenges now ahead.  In itself however, the Council’s financial standing will not withstand those challenges, without other decisive planning and action being taken. 

Councillor Newman-Thompson proposed, seconded by Councillor Clifford:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)          That the provisional outturn for 2014/15 be endorsed, including the transfers to provisions and Balances actioned by the Chief Officer (Resources), and the position regarding overspendings. 

(2)          That the requests for capital slippage, as set out at Appendix G to the report, be approved.

(3)          That the Annual Treasury Management report and Prudential Indicators, as set out at Appendix H to the report, be noted and referred on to Council.

Officers responsible for effecting the decision:

Chief Executive

Chief Officer (Resources)

Reasons for making the decision:

The Outturn and Statement of Accounts report on all the financial resources generated and/or used by the Council in providing services or undertaking other activities under the Policy Framework.  The decision enables Members to endorse certain actions taken by the Chief Officer (Resources) and with regard to reserves contributions there would be opportunities for these to be amended during the current financial year, as part of the usual arrangements. The decision also anticipates the Chief Executive will monitor the forward implications of proposals for reductions in expenditure in the context of the saving requirements and the continuation of priority services and make clear in the reports to Cabinet.