Agenda item

To consider the attached report.

The Assistant Director, Resources, Mr Maddock introduced the quarter 1 financial monitoring report. The report provided a comparison between the original estimate for the period ended 30 June 2018 and the actual expenditure or income as applicable. 

He noted that:

·         overall there was a salary underspend of 2.8%, with the Neighbourhood Directorate having the largest part of this;

·         the investment interest was slightly above the target due mainly to the Council holding more cash than was expected;

·         Development Control income at Month 3 was well above expectations. Fees and charges were £274,000 higher than the budget to date and pre-application charges were £5,000 lower than expected;

·         Building Control income was £22,000 lower than the budgeted figure at the end of the first quarter due to some administrative issues. By the end of month 4 these had been resolved and income was only £5,000 below budget;

·         Public Hire licence income was above expectation and other licensing was below expectations. A significant number of renewals were due in the autumn which should bring licensing income back into line with the budget;

·         Local Land Charge income was now £8,000 below expectations however it was a little early in the year to be sure whether this trend would continue;

·         expenditure and income relating to Bed and Breakfast placements had reduced in recent months. Invoicing had been a little slow from bed and breakfast accommodation providers but also Housing Benefit caseload had been reasonably static;

·         no recycling credit income had been received in the first quarter and Essex County Council would have to be chased up for this; and

·         the Housing Repairs Fund showed an underspend of £38,000; this related mainly to planned maintenance works.

He reported that this was the seventh year of operation of the Business Rate Retention Scheme where a proportion of the rates collected were retained by the Council. There were proposals that 75% of Business Rates were to be retained within Local Government, to possibly take effect for the financial year 2010/21. The Council had volunteered to take part in a pilot programme for the 75% retention rate in 2019/20 and would find out early next year if it had been successful.

The salaries budget was on track having spent around £6million for the first quarter of the year. The table in the report shows the breakdown under the old structure. This is currently being revised into the new council structure.

Councillor Lion asked why the Communities Directorate were over spent by 0.3% he was told that they were overspent on the HRA but underspent on the General Fund by £7k.

Councillor Bedford asked about slow invoicing from Bed and Breakfast placements. He was told that although they were currently slow in invoicing the Council they would have caught up by the end of the year.

Councillor Patel was concerned that Building Control fees were significantly lower in the first quarter this year than in previous years. He asked if this had picked up in the meantime. He was told that it had now sorted itself out from the end of June.

The Committee noted that the local plan had recently been submitted and expenditure was now on hold. Councillor Stalker asked if the barrister’s fees for the appeal had been included in the figures given and was told that they had not yet been taken into account as the council had not been billed as yet.

It was noted that there was now a Local Plan implementation team in Planning Services looking at the scheme.  Councillor Lion asked what impact the Local plan would have on other revenues. Councillor Whitbread added that this would need to be profiled as it came into effect. Mr Maddock said that this was something to keep an eye on and to go into the next medium term financial strategy report.

Councillor Owen noted that there was a lot of non-cash items coming through in annex 4d, would there be any way to see the true figures. Mr Maddock said that they did have these figures and he could share it the councillors.

RESOLVED:

That the Committee noted the revenue and capital financial monitoring report for the first quarter of 2018/19;