Agenda item

Report of Deputy Chief Executive.

Cabinet lead members:  Councillors Gill Mattock and Troy Tester.

See item 14 below for confidential addendum relating to debt write-offs.

(1) Performance agreed.

(2) General fund, housing revenue account and collection fund financial performance for quarter ended December 2015 agreed.

(3) Transfers from/to reserves be agreed.

(4) Capital programme agreed.

(5) Treasury management performance agreed.

(6) Debt write offs set out in the exempt appendix approved.

70.1 Cabinet considered the report of the chief finance officer and senior head of corporate development and governance reviewing the council’s performance against corporate plan priority indicators and action targets; financial performance of general fund revenue expenditure, housing revenue account and capital programme and treasury management activities for the third quarter of 2015/16. 

70.2 Appendix 1 gave detailed information on non-financial performance indicators and highlighted those giving cause for concern as well as the best performing indicators at paragraphs 2.9 and 2.10.  Councillors highlighted improved and above target performance in relation to call answering, fly tipping and catering and theatres income.  Also noted were additional schemes added to the devolved ward budget scheme since the report had been prepared; funds were now largely spent or committed. 

70.3 The general fund performance at the end of December showed a positive variance of £56,000 on net expenditure (a movement of £127,000 compared to the position reported at the end of the second quarter in September).  Service expenditure (shown in appendix 2) had a favourable variance of £257,000, mainly as a result catering income (£64,000); additional crematorium abatement income (£64,000); underspends on council tax (£46,000); theatres income above target (£35,000); change in provision of bad debts on loan deposit scheme (£28,000); events improved performance against targets (£27,000); reduction against budget of housing benefit administration grant (£40,000); and shortfall in rental income from various properties (£45,000).

70.4 The contingency fund currently stood at £165,000, which was being set aside to offset against the profile of the savings target elsewhere in the budget.  The projected outturn showed a favourable variance of £3,000.  Members’ approval was also sought for the transfer from reserves totalling £65,539 as set out in appendix 3.  These transfers were in line with the approved financial strategy.

70.5 Housing revenue account performance was currently above target by £118,000; mainly due to increase in rents from the number of void properties being at a lower level than budgeted for plus a quicker turnaround (£50,000), a reduction required for the provision for bad debts (£46,000) and the slow take up of the under occupation scheme (£46,000).  These favourable variances were offset by an overstatement in the budget for service charges of £40,000.  The projected outturn showed a surplus of £104,000 due to the full year effect of the issues highlighted above.

70.6 The detailed capital programme was shown in appendix 4.  Actual expenditure was low compared to the programme.  This was due to schemes that would be delivered over more than one year.  Expenditure was expected to increase as schemes progressed and had been re-profiled into the 2016/17 year where appropriate.  The senior head of community was asked to provide members with information about when capital funding of £10,000 (carried forward from previous years) for digitisation of burial records would be spent.

70.7 Council tax collection was currently showing a £1,359,000 surplus; a variance of 2.48% of the total debit due for the year.  This was due to a combination of factors including better performance against the collection allowance within the council tax base and a reduction in the council tax reduction scheme caseload.

70.8 The business rates deficit of £1,711,000 was as a result of the ongoing risk from the number of backdated appeals outstanding.  The total number of appeals outstanding as at 31 December 2015 was 245 with a total rateable value of £22m.  The deficit represented 5% of the total debit for the year.  Members noted the chancellor’s budget announcement that small businesses would continue to benefit from rate relief and raised concern as to whether the government would make good the loss of income to local councils.

70.9 The annual treasury management and prudential indicators for 2016/17 had been considered by cabinet and council in February.  During the quarter to 31 December 2015 the council had operated within all the treasury limits and prudential indicators set out in the council’s treasury management strategy statement and in compliance with the council's treasury management practices.

70.10 The report sought cabinet approval for the write off of irrecoverable debts totalling £84,421.98 where all other methods of recovery had been unsuccessful and it was not deemed appropriate to pursue the debts further.  Details of the write offs were listed in a confidential appendix, together with brief explanations of the circumstances (exempt information reason: 3 - information relating to the financial or business affairs of any particular person (including the authority holding that information).  The senior head undertook to inform members of the detailed circumstances of one of the write-offs relating to an overpayment of benefits.

70.11 Resolved (key decision): (1) That performance against national and local performance indicators and actions from the 2010/15 corporate plan (2014 refresh) be agreed.

(2) That the general fund, housing revenue account and collection fund financial performance for the quarter ended December 2015, as set out in sections 3, 4 and 6 of the report, be agreed.

(3) That the transfers from/to reserves as set out in appendix 3 be agreed.

(4) That the capital programme, as set out in appendix 4 to the report, be agreed.

(5) That the treasury management performance, as set out in section 7 of the report, be agreed.

(6) That the write offs as set out in the exempt appendix be approved.

(7) That members record their thanks and appreciation for the work of the different council teams in achieving the performance noted in the report.