Agenda item

(Director of Finance & ICT) To consider the attached report (FPM-028-2013/14).

The Director of Finance & ICT presented the Quarterly Financial Monitoring report for the period October to December 2013, which provided a comparison between the revised estimates and the actual expenditure or income. The report provided details of the revenue budgets from both the Continuing Services Budget and District Development Fund, as well as the Capital budgets, including details of major capital schemes.

The Cabinet Committee noted that the salaries budget showed an underspend of £174,000 or 1.2%.Investment interest levels in 2013/14 were slightly ahead of the revised expectation at quarter three, but significantly below the prior year. There has been some talk recently about movements in interest rates but it was still unlikely that rates would improve in the short to medium term. Investment returns in the prior year were higher as there were still some longer term deals maturing at better rates than those available now.

Within the Planning & Economic Development Directorate, Development Control income had recovered to the extent that it now exceeded both the prior year actual and revised position for 2013/14. Income from pre-application charges and development control fees were both doing well. Income from Building Control was revised down by £73,000 and there were some expenditure savings to offset this but the predicted deficit for this year had increased from £14,000 to £35,000. If the account goes into overall deficit, the position would need to be addressed over the ensuing three year period to ensure the account does not remain in deficit. 

Within the Corporate Support Services Directorate, Licensing income for Hackney Carriages and other licensing actives were below expectations by £6,000 and £4,000 respectively. Income from MOT’s carried out by Fleet Operations was in line with the revised expectation but income in January was better than expected and the updated target looked likely to be achieved. The Local Land Charge income was higher than in the prior year and above the revised estimate which suggested income would  exceed budget for the year.

Within the Housing Directorate, the Housing Repairs Fund showed an underspend of £364,000. However a larger than average proportion of the expenditure was seasonal falling in the winter months and the budgets would be revised shortly.

Within the Environment & Street Scene Directorate, payments to the Waste Management contractor were in line with expectations again in that payments had been made up to the end of November by the end of December.

The Director of Finance advised that no additional comments had been raised from the Finance Performance Management Scrutiny Panel. It was highlighted by the Director of Finance & ICT that the operator of the North Weald Market may approach the Council for a reduction in the fees to reflect the reduction in traders and stalls over the Winter period. Although the Asset Management & Economic Development Cabinet Committee would have to consider any report that may come forward, this committee needed to be advised. The Cabinet Committee felt that a profiled fee may be more favourable to all concerned, so that no body lost out. This would be for the Asset Management & Economic Development Cabinet Committee to consider and note the comments of this committee. The Cabinet Committee also had concerns over the fleet operations.

Resolved:

1.            That the Quarterly Financial Monitoring report for the period 1 October 2013 to 31 December 2013 regarding the revenue and capital budgets be noted.

Reasons for Decision:

To note the Council’s financial position after the third quarter of 2013/14.

Other options Considered and Rejected:

No other options were considered as the report monitored the Council’s financial position after the nine months of the financial year.