Agenda item

The report provided an update on the projected outturn financial position of the Council for the financial year 2019/20 (as at 30 November 2019).

The current revenue forecast outturn for the financial year 2019/20 was set out. These were the best estimates at month 8 of the financial year based on information currently available:

a)     General Fund (GF) Revenue Budget reported a forecast net overspend of £36k.

b)     Housing Revenue Account (HRA) Revenue Budget forecasted a net underspend of £378k.

The current Capital Programme forecast position for 2019/20 was as followed:

(a)    The General Fund Capital Programme budget was £56.734m. No significant variations to budget were currently reported.

(b)    The HRA Capital Programme budget for 2019/20 was £23.093m. As previously reported, it was expected costs would be phased over more than one year so a proportion of the budget would be carried forward at the end of the financial year.

The HRA Capital Programme was provided in detail in Appendix A and The General Fund Capital Programme detailed in Appendix B.

The General Fund general reserves balance as at 31 March 2020 was projected to be £2.756m (subject to risks identified). The opening balance had been adjusted due to an accounting error correction in last year’s accounts, The balance was below the operational target of £3m, but above the financial resilience target of £2.4m as approved in the Council’s Financial Strategy in September 2019.

The General Fund earmarked reserves balance at the beginning of the year was £18.242m. The net movement in year was reported at an increase of £3,954m, mainly contributions to the New Homes Bonus (less the agreed contribution of £747k to fund staff costs) and Business Rates Smoothing earmarked reserves. A number of allocations from reserves were applied at the end of the financial year and would be included in the Outturn report at that stage.

The Housing Revenue Account (HRA) general reserve balance as at 31 March 2020 was projected to be £3.07m (subject to risks identified). This was above both the current recommended operational target level (£2.4m) and financial resilience target level (£1.8m) set within the Council’s Finance Strategy and HRA Business Plan.

The HRA earmarked reserves balance at the beginning of the year was £2.719m, with £1.369m committed to be spent within the next three years and the remaining £1.340m for the Social Housing Development Fund to be used as required to fund social housing development.

Debate

·         Additional and temporary staffing costs were considered. There had been constant variance to this budget throughout the year.

·         Final costs would be provided for the repair of the Watchet Harbour Wall.

·         Further details were requested for the variances detailed in the financial monitoring report. Amongst these were parking income projections and increased costs of the service, and the Housing Partnership overspend.

·         Greater clarification was requested on the £20k GDPR spend.

·         Further details were requested on the processes of welfare funerals and costs of provision.

The Scrutiny Committee Recommended that:-

The Committee support the report subject to the receipt of responses circulated to all Councillors before the Executive committee on 28^th January.