Agenda item

Purpose: To inform Members of the latest financial performance of the Council. 

The Committee considered the month 8 financial performance report (Agenda Item 6).

The point was made that this report compared to the position in month 7 and it would be preferable for the Select Committee to consider changes made since the previously received report (in this case month 6).  Andy Walker agreed to look at accommodating this in some way. 

The significant impact made by the levies and interest budget line was noted.  This was detailed in the Part II report.  Andy Walker advised that only a small fraction was as a result of treasury management. 

Andy Walker informed Members that an application had been submitted to the Department for Communities and Local Government asking to capitalise costs of staff redundancies in the longer term.  This was for staff funded from specific grants whose costs could not be met from within the grant.  The outcome of this would be reported in February 2011, hopefully by the time the Executive met on 17 February 2011. 

At this stage these redundancy costs of circa £320k were set against the Economic Downturn Provision included in specific earmarked reserves.  This £1.4m provision was established in the 2010/11 financial year. 

Only 29% of the recruitment freeze target had been achieved across Children and Young People.  Reduced turnover meant achieving this target was challenging.  This contributed to the increased overspend in the Directorate. 

The income target for the Youth Service of £1.2m was queried and further detail requested to explain how it was generated.  It was noted that this target covered the entire Youth Services and Commissioning service area. 

Pressures in the Property and Public Protection budget were partly due to the running costs of West Street House and West Point.  It was agreed that further information would be requested on this as it was pointed out that the move to these buildings was intended to reduce costs.  Andy Walker explained that this cost would be spread across the service areas making use of the buildings and they would be recharged at year end. 

A reduction was planned in highway maintenance of £250k.  However, Members were concerned that this would have come under pressure as a result of the severe winter weather conditions experienced in December.  Further information would therefore be requested to explain if this budget had come under pressure.  The winter maintenance budget was forecast to be £175k overspent and it was queried whether additional costs encountered in December and potentially further into the winter were covered in this overspend.  A view was given that the increased salt stock would have been budgeted for, but might not have taken into account the need to replenish stocks if necessary. 

Savings were being found from the concessionary fares budget and this was believed to be due to a reduced usage of bus passes.  Further information was requested on the reasons why this had reduced. 

Savings were also being found from a lower than anticipated spend on sewage treatment works of £50k.  The question would be asked as to how this was found. 

RESOLVED that:

(1)       Andy Walker would look at amending the budget reports presented to the Select Committee so that they made reference to the previously reported position. 

(2)       Further detail would be requested on the following points:

·              Where the income was generated from for the Youth Service. 

·              The budget pressure caused by the running costs of West Street House and West Point. 

·              The reduction in highway maintenance expenditure and the pressures in the winter maintenance budget. 

·              The reduced usage of bus passes. 

·              The lower than anticipated spend on sewage treatment works.