(Cabinet Member with Special Responsibility Councillor Roger Mace)
(Councillor Archer declared a personal interest in that part of the report which referred to the Winter Gardens, Morecambe)
The Head of Financial Services submitted a report which provided summary information regarding the provisional outturn for 2007/08 and the timetable for completion of the closure of accounts process. It also set out information regarding the carry forward of underspent/overspent revenue budgets and capital slippage for Members’ consideration, and sought approval of various Prudential Indicators for last year for referral on to Council.
The options, options analysis, including risk assessment, 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 a Statement of 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 Head of Financial Services, however. 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 revenue budget carry forward matters and capital slippage. 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 any number of the 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. Cabinet is asked to bear in mind any work required against the value of the individual bids.
Cabinet also considered a referral report from the Budget and Performance Panel notifying Cabinet Members of recommendations agreed by the Panel following its consideration of the Provisional Revenue and Capital Outturn 2007/8 at a special Panel meeting held on 29th July 2008.
A schedule of officer recommendations in respect of the requests for carrying forward budget overspends/underspends was circulated to assist Cabinet in their considerations.
In light of the recommendations from the Budget and Performance Panel, and assisted the schedule of officer recommendations referred to above, an updated set of proposed recommendations was circulated at the meeting.
It was moved by Councillor Mace:-
“1. That the Housing Revenue Account (HRA) and General Fund revenue outturn position for 2007/8 be noted.
2. That the transfers to Provisions and Reserves actioned by the Head of Financial Services be noted and endorsed.
3. That Cabinet notes the recommendations of the Budget and Performance Panel that met on 29th July to consider the 2007/8 revenue and capital outturn report and that in particular, it has agreed a scrutiny process involving the relevant services and Cabinet Members to review significant outturn variances.
4. That in respect of (3) above, Cabinet receives a report from the Budget and Performance Panel on the outcome of its deliberations.
5. That Cabinet notes that officers are undertaking further analyses of the outturn variances to assess any ongoing implications for future years’ budgets, and requests a report back on these as part of the mid-year review of the Medium Term Financial Strategy.
6. That, in respect of the controllable overspends set out in Appendix F, no action be taken to reduce the 2008/9 budgets at this stage, but the overspends identified should be reviewed as part of the exercise agreed in (5) above.
7. That, in respect of the requests for carrying forward underspends, Cabinet notes the recommendations from the Budget and Performance Panel to seek to maximise opportunities for achieving the savings and efficiencies targets set out in the 2008/9 Corporate Plan/Medium Term Financial Strategy, and the Council Housing 30 year Business Plan, and consequently agrees the attached schedule of approved carry forwards.
8. That Cabinet notes the HRA and General Fund capital outturn as set out in Section 4 of the report and approves the slippage requests as set out in Appendix J. It further notes that a report on the Luneside East Regeneration project will be brought back to Cabinet in due course.
9. That Cabinet notes that the Annual Treasury Management Prudential Indicators, as set out in Appendix K, will be referred to Council for formal approval.
10. That Cabinet notes the timetable for the completion and reporting of the closure of the 2007/8 accounts as set out in section 6 of the report.”
Councillor Fletcher seconded this, subject to the addition of:-
Councillor Mace accepted these additions as a friendly amendment.
Members then voted as follows:-
Resolved unanimously:
(1) That the Housing Revenue Account (HRA) and General Fund revenue outturn position for 2007/8 be noted.
(2) That the transfers to Provisions and Reserves actioned by the Head of Financial Services be noted and endorsed.
(3) That Cabinet notes the recommendations of the Budget and Performance Panel that met on 29th July to consider the 2007/8 revenue and capital outturn report and that in particular, it has agreed a scrutiny process involving the relevant services and Cabinet Members to review significant outturn variances.
(4) That in respect of (3) above, Cabinet receives a report from the Budget and Performance Panel on the outcome of its deliberations.
(5) That Cabinet notes that officers are undertaking further analyses of the outturn variances to assess any ongoing implications for future years’ budgets, and requests a report back on these as part of the mid-year review of the Medium Term Financial Strategy. In particular, cabinet would like a report on overspending on the Dome, Salt Ayre and Community Pools.
(6) That, in respect of the controllable overspends set out in Appendix F, no action be taken to reduce the 2008/9 budgets at this stage, but the overspends identified should be reviewed as part of the exercise agreed in (5) above.
(7) That, in respect of the requests for carrying forward underspends, Cabinet notes the recommendations from the Budget and Performance Panel to seek to maximise opportunities for achieving the savings and efficiencies targets set out in the 2008/9 Corporate Plan/Medium Term Financial Strategy, and the Council Housing 30 year Business Plan, and consequently agrees the attached schedule of approved carry forwards.
(8) That Cabinet notes the HRA and General Fund capital outturn as set out in Section 4 of the report and approves the slippage requests as set out in Appendix J. It further notes that a report on the Luneside East Regeneration project will be brought back to Cabinet in due course.
(9) That Cabinet notes that the Annual Treasury Management Prudential Indicators, as set out in Appendix K, will be referred to Council for formal approval.
(10) That Cabinet notes the timetable for the completion and reporting of the closure of the 2007/8 accounts as set out in section 6 of the report.
(11) That Cabinet notes that a report on the Capital Investment Strategy for the delivery of the Capital Programme in 2008/9 will be presented to Cabinet in October 2008.
Officers responsible for effecting the decision:
Corporate Director (Finance and Performance)
Head of Financial Services
Reasons for making the decision:
The decision satisfies the City Council’s statutory duties to produce a Statement of Accounts and Prudential Indicators. The resolutions in respect of outturn variances and requests for carry forward of overspends/underspends seek to manage the requests within the reserves/provisions that are already available and so maximise the outturn surplus to help achieve the savings and efficiency targets in the Medium Term Financial Strategy and Council Housing 30 year Business Plan. The Capital slippage approval is necessary to deliver on going and committed capital approved schemes. The reports requested back to Cabinet are consistent with the views expressed by the Budget and Performance Panel and will further assist Cabinet in fulfilling its financial management responsibilities.