Agenda item

Report of the Financial Services Manager.

The Financial Services Manager introduced a report on Provisional Revenue, Capital and Treasury Management Outturn 2016/17. The report set out information regarding carry forward of capital slippage, as well as a number of issues including provisional outturn and treasury management outturn.

The options, options analysis, including risk assessments and officer preferred options considered by Cabinet were set out in the report as follows:

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

The report had requested that Cabinet consider a number of revenue overspending, capital slippage and other budget adjustment matters. The framework for considering these was set out in the report but basically Cabinet had been asked to:

·         Endorse 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 continued to support its previously approved spending plans, then the Officer preferred options were to approve the capital slippage requests.

Although the General Fund budget and associated Government funding reduced again in 2016/17, the Council continued to manage the financial pressures well and it had again improved the Fund’s overall financial standing as at 31^st March 2017. Similarly, the HRA’s standing was currently sound. Whilst net revenue underspends were experienced on both General Fund and HRA, their scale was again lower than in previous years, reflecting the much tighter financial environment within which the Council was working. Although various actions had been outlined in the report, there were no wholly new matters arising that had not previously been reported or highlighted in some form, and this could give some comfort with regard to the adequacy of the Council’s financial planning and monitoring arrangements. This was especially so, given that local government finance appears to be getting more complex, as evidenced perhaps by the business rates outturn position for last year.

The resolution of Cabinet with regard to this matter was submitted as an Appendix to the report for Members’ information.

Members asked a number of questions relating to overspending on repairs and maintenance, earmarked reserves, restructuring/budget support, business rates appeals provision and energy efficiency works. The Panel also asked questions regarding Housing Benefits overpayments and the impact of Universal Credit, differences between the Budget Book and the end of year, pre-1990’s insurance claims, pensions, commercial properties and Council Tax.

Resolved:

(1)          That the report be noted.

(2)          That a briefing note on energy efficiency programme works in the General Fund be re-circulated to Members.

(3)          That a briefing note on Housing Benefit overpayments, including the previous and current repayment and recovery system be provided to the Panel.

(4)          That commercial property vacancies be reported in the Quarter 1 Financial Monitoring Report.

(5)          That a briefing note be provided on the differences between the Budget Book and the year end Reserves and Provision Statement.

(6)          That information be provided to the Panel regarding restructuring/budget support spends.

(7)          That information be provided on the Waste/Recycling Budget increases on the General Fund Revenue Budget Summary.

(8)          That a presentation be provided regarding the Council’s Budget Book, to include an understanding of Central Service Charges.