A report from the Director of Finance, Resources and Customer Services is attached. This sets out the Council’s revenue budget monitoring position based on information to the end of October 2014. (Key decision – reference number 3951)
(8.20 – 8.25 pm)
Councillor Andrew Stafford (Cabinet Member for Finance) introduced the report of the Director of Finance, Resources and Customer Services (No.125) setting out the Council’s revenue budget monitoring position based on information to the end of October 2014.
1. That the report forecast an outturn position of £2.57m overspend for 2014/15 subject to action plans to contain budget pressures. It was expected that there would be a balanced budget at year end; remedial action was being taken to address the overspend. The current overspend represented approximately 1% of the overall Council revenue budget spend.
2. The departmental monitoring information as detailed in section 5 and Appendix A of the report.
3. The key risks set out in section 13 of the report.
4. The treasury management and cash flow analysis set out in section 6.1 and Appendix B of the report. The Council’s overall borrowing positon was stable.
5. That a £330k pressure had arisen in relation to Broomfield House as the structure now required new scaffolding to secure the property and meet health and safety requirements. This one-off cost would be met from the Council’s Risk Reserve, as detailed in decision 2 below. Councillor Charalambous advised Members of the work currently being undertaken by the Broomfield House Partnership Board in considering the way forward. Members noted that the new scaffolding was necessary to keep the building safe and to comply with the Council’s responsibilities.
Alternative Options Considered: Not applicable to this report.
DECISION: The Cabinet agreed to
1. Note the £2.57m overspend revenue outturn projection.
2. The allocation of £330k from the Council’s Risk Reserve to fund work at Broomfield House (as detailed in section 5.3 of the report).
3. Note the work Ernst and Young were undertaking within Schools and Children’s Services in relation to an opportunity assessment and savings strategy in order to find further efficiencies. The final report was scheduled for mid-January 2015.
4. Note the in-house review of Property Services that would identify potential actions in order to achieve budget savings.
Reason: To ensure that Members were aware of the projected budgetary position for the Authority for the current and future years including all major budget pressures and underspends which had contributed to the present monthly position and that were likely to affect the Council’s finances over the period of the Medium Term Financial Plan.
(Key decision – reference number 3951)