To consider the projected year end position based on performance to the end of Quarter 1 2019/20 and Officer’s planned actions to ensure a balanced budget by the end of the financial year.
The Finance and Resources Portfolio Holder introduced the Corporate Financial Monitoring report for Quarter One of 2019/20. The report highlighted the revenue budget which had the target of being balanced over the year, including a Customer Connect savings target of £740,000 and a vacancy savings target of £593,000. Further to this there was an amount of £510,000 from carry forward requests which had been approved by Cabinet in April. The Finance and Resources Portfolio Holder then moved on to inform Members of a reoccurring saving of £582,000 per annum resulting from the first phase of Customer Connect. He then highlighted a full year projection of a £104,000 departmental overspend and a further £158,000 in savings as a result of Customer Connect activity which was yet to be delivered which gave a current over-spend projection of £262,000 but the Management Team had been tasked with closing this gap.
The report also highlighted the Council’s position on the Capital Programme. The Finance and Resources Portfolio Holder informed the Committee that the total capital expenditure for the year amounted to £16.4m with the spend profile of all key projects being challenged.
The Finance and Resources Portfolio Holder provided an update on Treasury Management for the quarter. He began by informing the Committee that there was nothing major to report with the Council holding £26.2m of investments, and continued to achieve an average return of between 0.15% and 0.2% ahead of the benchmark Bid Rate. Alongside this he outlined progress on collection of Council Tax and Non-Domestic Rates, with Council Tax collection rates having continued to improve compared to non-domestic rate collection, which had suffered due to the choice of businesses to pay over 12 instalments. The Finance and Resources Portfolio Holder then informed Members on the collection of debts, highlighting the 2017/18 period of 99% of debts being recovered and the 2018/19 period having 2% of debts still to be recovered.
In concluding his report to the Committee, the Finance and Resources Portfolio Holder followed up on questions raised at the 12 July 2019 Overview and Scrutiny Committee meeting regarding 2018/19 outturn report focusing on Housing Benefit overpayment and Building Control. Furthermore the Finance and Resources Portfolio Holder wished to thank the Finance Team for their work.
RESOLVED – That the contents of the report be noted.