Agenda item

(Director of Resources) To consider the attached report (FPM-030-2015/16).

The Director of Resources presented the Quarterly Financial Monitoring report on key areas of income and expenditure which covers the period from 1 April 2015 to 31 December 2015. The report provided details of the revenue budgets for both the Continuing Services Budget, District Development Fund and the capital budgets which included the details of major capital schemes. The salaries monitoring data was also presented as well, because it represented a large proportion of the authorities expenditure and was an area where historically large under spends had  been seen.

The Cabinet Committee noted that the Salaries budget showed an underspend of £284,000 or 1.8%. The vacancy allowance had been removed from the budget when it was revised and allocated to the areas where vacancies had actually occurred  and still showed an underspend. The Communities Directorate showed the largest underspend of £124,000, which  related to the Housing works Unit and the other three directorates were all showing an underspend, although less significant. The investment interest levels were below expectations at Month 9 by £6,000 and whilst cash balances available for investment had reduced, the income from the loan to Biffa had offset this to a degree.

Within the Governance Directorate, Development Control income for Fees and charges were £34,000 higher than budgeted and pre-application charges were £13,000 higher and the total income was £62,000 above expectations. The Building Control income was £6,000 higher than budgeted and the ring-fenced account was showing an in-year surplus of £53,000 with the expected surplus of £13,000 being  revised upwards to £47,000 for the full year.

Within the Neighbourhoods Directorate, Public Hire licence income and other licensing was now above expectations. The income from MOT’s carried out by Fleet Operations was £4,000 below expectations and the revised budget showed a deficit of £6,000. The Car Parking income was £31,000 below the estimate and the Pay and display income was in line with the profiled budget. The Local Land Charge income was £8,000 above the revised expectation and there had been significantly fewer searches undertaken this year compared to the same period last year.

Within the Communities Directorate, the Housing Repairs Fund showed an underspend of £366,000 and the budget had been reviewed with some savings being identified. There was also a significant variance on HRA Special Services which related partly to heating and lighting and work undertaken by Smith Bellerby.

The Business Rates Retention Scheme had been in operation for three years and whereby a proportion of rates collected were retained by the Council, there were two aspects to monitor which were the changes in the rating list and the collection of cash. For 2015/16 the funding retained by the authority after allowing for the Collection Fund deficit from 2014/15 was £3,363,000, which exceeded the government baseline of £3,022,000 by some £341,000. The actual position for 2015/16 would not be determined until May 2016. Regarding the cash collection, at the end of December the total collected was £28,006,359 and payments out were £25,614,207, which meant that the Council was holding £2,392,155 of cash and so the Council’s overall cash position was benefitting from the effective collection of non-domestic rates. The budget had revealed that all Schools would be converted into academies, which would give them a charity status and therefore reducing the business rates collected by the Council.

There were three projects included on the Major Capital Schemes schedule relating  to the Museum redevelopment, House Building package 1 and The Epping Forest Shopping Park. Annex 12 gives more detail.

In conclusion, the Director of Resources stated that with regards to revenue, income was generally up on expectations and expenditure was down. The increased income levels were very much welcome from Development and Building Control in particular and expenditure being below budget was not surprising as expenditure was usually heaviest toward the end of the financial year.

Councillor D Stallan raised concerns over the income from MOT’s carried out by Fleet Operations being below expectations. The Director of Resources advised that he would look into why there had been a reduction.

Councillor J Philip enquired about the figures in relation to Housing Estate Parking and Solar Energy Panels being incorrect. The Director of Resources advised that they would be corrected for the relevant Select Committees, when they considered them at their next meeting.

Resolved:

(1)        That the Quarterly Financial Monitoring Report for the period 1 April 2015 to 31 December be noted.

Reasons for Decision:

To note the third quarter financial monitoring report for 2015/16.

Other Options Considered and Rejected:

No other options available.