Agenda item

(Director of Resources) to consider the attached report.

The Assistant Director Accountancy, P Maddock introduced the Quarterly Financial Monitoring reports on key areas of income and expenditure, proving a comparison between the original estimates for the period 1 April 2015 to 30 June 2015 and the actual expenditure or income applicable.

Revenue Budgets

It was noted that;

·         The salaries schedule showed an underspend of £191,000 or 3.6%. The variance this time last year was 2.0% and an allowance of 1.5% had been allowed for but vacancies were running at a rather higher level with the exception of the Chief Executive showing a degree of underspend;

·         Investment interest levels were slightly below expectations in the first quarter due to the payment made to Polofind for the land at Langston Road in July 2015 and for the second half of the financial year, when construction of the retail park commences;

·         Development Control was continuing the recent upwards trend and was £118,000 above expectations by the end of July 2015. Fees and charges were £71,000 higher and pre-application charges  were £15,000 higher than budgeted;

·         Building Control income was £18,000 higher than the budgeted figure at the end of the first quarter with the ring-fenced account showing an in-year surplus of £34,000;

·         Hackney Carriages income was £4,000 above expectations and other licensing activities were in line with the budget;

·         Income from MOT’s carried out by Fleet Operations was £3,000 above expectations, although the budget was expected to breakeven in 2015/16;

·         Car Parking income was £51,000 below the estimate and based on the current information there could be a shortfall and it would need to be kept under review;

·         Local Land Charges income was below expectations because of the reductions in searches undertaken which had continued from 2014/15 and would be kept under review;

·         The new waste management contract recycling credits paid for dry recycling  had been delayed and in order to reduce the administration time and speed up the payments times, it had been agreed that a fixed sum be paid. After initial difficulties with no payments being received in the first quarter  the payments were now running smoothly; and

·         The Housing Repairs Fund showed an underspend of £320,000, which was likely to be fully spent within the year.

Business rates

It was noted that;

·         There were two aspects to monitor which were the changes in the rating lists and the cash collections;

·         The NNDR1 form set out the non-domestic rate estimated for the year started with a gross yield of £41,552,448 which was then reduced by the various reliefs for charities and small businesses and an allowance for appeals to get to a net rate yield of £35,883,949. At the end of June 2015 the net rate yield had increased by £242,358 and as the Council retains 40% of the gains or losses this had meant an increase in funding of £96,943. However given outstanding appeals and a number of claims for small business rates and other reliefs being received, it had been expected that it would reverse; and

·         The cash collections had collected a total of £10,334,743 and payments out were £8,538,069, which had meant that the Council held £1,796,674 of cash and therefore benefited from the effective collection of non-domestic rates.

RESOLVED:

That the revenue and capital financial monitoring report for the first quarter of 2015/16 be noted.