Agenda item

(Director of Resources) to consider the attached report.

The Assistant Director (Accountancy) introduced the financial monitoring report for the third quarter of 2016/17. The report covered the period from 1 April 2016 to 31 December 2016. The reports were based on which directorate was responsible for delivering the services to which the budgets related and the budgets themselves were the Revised Estimate.

Revenue Budgets

It was noted that:

·         The salaries schedule showed an underspend of £148,000 or 0.9%. At the third quarter last year the underspend was 1.8%;

·         Neighbourhoods was showing the largest underspend of £64,000, this relates mainly to Forward Planning and Grounds Maintenance;

·         Resources showed an underspend of £59,000 relating to Revenues and Housing Benefits;

·         The investment interest was a little lower than the budget partly due to a delay in the payment from Biffa for the loan;

·         Development Control income at Month 9 was continuing the recent upward trend. Fees and charges were £59,000 higher than the budget to date and pre-application charges were in line with the updated position;

·         Building Control income was £6,000 lower than the budgeted figure at the end of the third quarter. By the end of month 11 income was only £1,000 down;

·         Although Public Hire licence income and other licensing was above expectations, the Public Hire figures shown include £27,000 relating to future years so in reality income relating to 2016/17 was £7,000 down;

·         Income from MOT’s carried out by Fleet Operations was £9,000 below expectations. Income had been affected by the uncertainty around the relocation to Oakwood Hill;

·         Car parking income was £14,000 below the estimate as at month 9. However there was some income relating to this period that was not received until February;

·         Local Land Charge income was £1,000 above expectations;

·         Expenditure and income relating to Bed and Breakfast placements was on the increase; and

·         The Housing Repairs Fund showed an underspend of £510,000. There were underspends showing on both Planned Maintenance and Voids work.

Business Rates:

It was noted that:

·         This was the fourth year of operation for the Business Rates Retention Scheme whereby a proportion of rates collected were retained by the Council; and

·         For 2016/17 the funding retained by the authority after allowing for the Collection Fund deficit from 2015/16 was £3,435,000. This exceeded the government baseline of £3,050,000 by some £385,000. The actual position for 2016/17 will not be determined until May 2017.

Tables for capital expenditure monitoring were appended to the main report along with major capital schemes.

With regard to revenue, income was generally up on expectations and expenditure down. The increased income levels are very much welcome, in particular Development Control income. Expenditure being below budget was not surprising as expenditure was usually heaviest in the last quarter.

Councillor Kane asked about uncertainty around the MOTs and the relocation to Oakwood Hill. Mr Maddock said that the move to Oakwood Hill proved to be quite expensive including the cost of security for the depot. When more services moved into Oakwood Hill, this should bring the costs down.

Councillor Lion asked about the delay in Biffa paying us back. He was told that it was Biffa who were late in billing us, which worked out in our favour.

Councillor Jon Whitehouse asked about the credits for the recycling income which was low when compared to expectations. Mr Maddock said that prices for recycling have now gone up and that the new receipts would now offset some of this.

Councillor Kane asked about the recycling income. Mr Maddock explained that officers were in negotiations with Biffa with regards to the quality of recycling and as a result more money was given by the Cabinet. For recycling credits, we were in the hands of the County for this, but will catch up by the end of the year.

Councillor Bedford asked about Oakwood Hill and if there was any prospect of partnering up with another authority such as Waltham Forest. Councillor Lion said that was the intent when they moved. Mr Maddock said that he would look into this.

Councillor Kane wanted to know how many people we put into Bed and Breakfast accommodation as they were reported to be on the increase. Mr Maddock said he would find out the average numbers.

Councillor Bedford asked if we were still in negotiations with Zinc at Ongar for us to use their spare rooms. He was told that we were still talking to them. Councillor Lion said the Cabinet had also recently agreed to house people in ‘housing pods’. Mr Maddock added that we had got extra funding of about £¼ million for this.

RESOLVED:

That the Committee noted and commented on the revenue and capital financial monitoring report for the third quarter of 2016/17.