Agenda item

The Executive Member for Finance and Support Services submitted a report on the General Fund Revenue Outturn for 2016/17, which explained variances against the approved budget, the financing arrangements for 2016/17 Capital Outturn (and approved slippage) and the 2017/18 capital budget.  The report also provided an update on the annual position against the Council’s key performance indicators.

The Head of Strategic Finance provided a summary of the key highlights of the report in terms of where and why overspends had occurred. 

Councillor M Pope expressed concern that there appeared to be a trend in overspending and sought more detailed information on why this had occurred.  The Head of Strategic Finance explained, by way of example, the issues associated with increasing IT software costs, and the establishment of the building control company. 

The Director commented that with regard to business and technology, changes had occurred in how the Council had to pay for some  software and licensing costs in terms of the use of capital rather than revenue.  She also explained that there had been some increases in licencing costs   that left little room to negotiate on plus the need to review cyber security arrangements. The Council negotiated where it could. 

Councillor J Wyllie sought and was provided with further clarification on the performance indicator QEHPI 5.13c (Customer Satisfaction).  The Head of Communications, Strategy and Policy assured Members that satisfaction levels were increasing and that the target figure might need revision next year.

The tenancy of Charrington’s House and the need to reduce costs relating to vacant space was discussed.  Councillor C Woodward urged Officers to be more flexible in relation to the leases offered to prospective tenants.   

The Chairman sought and was provided with clarification on the following:

·        the establishment of a building control; company and the costs incurred;

·        the deficit on the collection fund;

·        alternative sources of funding for the services delivered;

·        complaints resolved within 14 days (10 working days) or less; and

·        Council Tax Collection - % of current year liability collected.

Councillor K Crofton expressed concern on the level of overspends as detailed, and urged the need for more accurate budgeting so that an appropriate level of Council Tax could be set.  He stated that the Council should not be diving into its reserves.  The Head of Strategic Finance accepted that the budget should have been updated to reflect contributions from reserves.  She stated that in relation to Council Tax the Council could only increase this by 2%.

The Director reminded Members that some expenditure was totally out of the Council’s control, e.g., the Council did not set business rates and did not make decisions on business rate appeals which any business could ask for.  The Council took a view on the likely level of appeals and set aside earmarked reserves against which to write down an appeal which is what had happened in 2016/17 and was reflected in this report.  Decisions about the budget were, therefore, made on the basis of best information available and also why it set aside reserves for specific purposes.

Members sought and were provided with clarification on residual household waste per household refuse bin collections and street sweeping.  It was noted that this year’s value was 435kg per household (468 kg last year) and not as shown in the report which in effect, improved on the Council’s target this year by 40kg.  The Head of Communications, Strategy and Policy agreed to feed this back to the Head of Operations and ask her to respond to Members.  

Members of Performance, Audit and Governance Scrutiny Committee agreed the recommendations, as now detailed

RESOLVED – that the Executive be advised that Performance, Audit and Governance Scrutiny Committee endorses (A) the suggestion that the General Fund revenue outturn of £166k overspend be funded from the General Reserve;

(B)   Capital Budgets totalling £1,899k being re-profiled from the 2016/17 capital programme to 2017/18 in order to fund ongoing capital schemes ;

(C)   the Capital Programme for 2017/18 to 2020/21 as now detailed in paragraph 5.5 of the report ; and

(D)   the Annual Performance report as now detailed, being noted.