To note the projected year end position based on performance to the end of Quarter 2 2018/19 and to approve the changes to the Capital Programme as set out in the report.
Councillor Andrew Jarvis, Finance Portfolio Holder presented the second quarter financial monitoring report of 2018/19, moving the recommendations contained therein.
Although there was a current underspend of approximately £250,000, Appendix 1 set out the revenue variances to date which totalled a projected year-end overspend of £251,000. The Portfolio Holder provided explanations for the key movements. Further reviews of budgets had been carried out by senior management following the preparation of the report which had identified actions to mitigate the projected overspend, including reductions in the Minimum Revenue Provision, Development Control and Homelessness. The net impact of these actions had resulted in a revised projection at year-end of an underspend of £112,000.
Cabinet had given approval on 31 October 2018 (Minute CEX/49 (2018/19) refers) for a transfer of £82,000 from the Cumbria Non-Domestic Rate Pool Income Reserve to fund the costs of an additional £45,000 for the European Regional Development Fund Flood Alleviation Scheme application process; £25,000 to fund the Kendal Markets Review; and £12,000 to fund the project development phase of the Burton-in-Kendal Heritage Scheme. Approval had also been given for the transfer of £20,000 from the General Reserve to the Community Grants budget heading further to a request at the July Council that a £20,000 Community Projects Fund be created. A £12,000 transfer from the Statutory Duties Reserve had been approved to fund the costs associated with dealing with the planning appeal for the Kirkby Moor Wind Farm planning application.
Appendix 2 to the report set out the position on the Capital Programme. Spend against the Programme to the end of Quarter 2 was £2.366m. Approval was sought from Council for a number of minor amendments which would bring the total of the current Programme to £9.795m, details of which were provided. It was now clear that there was unlikely to be any spending on the European Regional Development Fund during the current financial year or the Cross-a-Moor junction. A request to approve reprofiling of these projections, if required, would be sought as part of the updated Capital Programme submitted during the budget setting process.
Appendix 3 to the report provided an update on Treasury Management for the quarter showing that all activity had been within the approved limits. Investments had performed better than the relevant benchmarks. No repayment of existing or new borrowing was anticipated up to the end of the financial year.
The Finance Portfolio closed in thanking the Finance Team for highlighting the challenges and enabling time for options to be examined.
Councillor Jarvis was seconded by Councillor Graham Vincent.
Councillor Tom Harvey referred to the Period 6 Capital Programme position and sought an update on the Castle Diary scheme and uncertainties regarding payment and timing. Councillor Jarvis undertook to provide a written response.
In response to a query raised by Councillor David Williams, the Director People and Places explained that the £26,000 income shortfall relating to Lake Windermere moorings related to market pressures which needed to be addressed through marketing.
RESOLVED – That
(1) the contents of the report be noted; and
(2) the virements and budget changes to increase the Capital Programme as outlined in paragraph 3.6.1 of the report and reflected in the revised Capital Programme at Appendix 2 to the report be approved.