Agenda item

Report of the Deputy Chief Executive

Members considered the report of the Deputy Chief Executive and Chief Finance Officer updating Members on the Council’s performance against Corporate Plan Priority actions, indicators and milestones for 2012/13.

Members were advised that Appendix 1 detailed activities and outturns of the performance indicators listed within the Corporate Plan 2013/14.

The first section of Appendix 1 listed all the Corporate Plan priority actions whose in-year milestones had already been fully completed this year.

The second section of Appendix 1 listed the ongoing actions showing all milestones that were scheduled for completion in quarter 3 of 2013/4 and any incomplete milestones from earlier in the year along with commentary to explain the context behind them.

Of the 37 Key Performance Indicators reported in the Corporate Plan this quarter, 8 were currently showing as “Red,” 17 were showing as “Green,” 4 were showing as “Amber” and 8 were “data only” or contextual PIs.  The off target PIs were;

• TL_041 Number of visitors (day visitors and staying trips)
• ECSP_004 Violent crime in a public place
• TL_014 Towner visitors
• CD_008 Decent Homes programme
• CD_052 Number of homes where Category 1 hazards have been remedied
• CD_055 Number of completed adaptations
• CD_056 Average number of days for assistance with adaptations
• CS_011 Telephone call abandonment rate

Members noted the position of the General Fund as of the end of December showed a positive variance of £40,000 which was a movement of £118,000 compared to the position reported at the end of the second quarter in September. Service expenditure had a variance of £141,000 a positive variance from September £40,000.  The main reasons for the improvement were detailed within the report.

The projected outturn showed a favourable variance of £30,000, this was within 0.17% of the net budget and was within an acceptable tolerance level.  The contingency allowance currently stood at £241, 529 and had been used to offset service expenditure. Therefore there was no further funding available for any future unforeseen one off areas of expenditure during the year.

Financial procedure rules require all virements requests over £10,000 for revenue expenditure to be approved by Cabinet. There was one request for this quarter as set out in Appendix 3and related to the approved phased reduction in the grant payable to the Allotments Society.  Cabinet’s approval would also be sought for the transfer from reserves as set out in Appendix 3. These transfers were in line with the approved financial strategy.

The updated capital programme was shown at Appendix 4 of the report.  Actual expenditure at 52% of the budget was lower than expected as a number of schemes had been delayed in starting or had not yet started in particular in the following areas but expenditure was expected in the next quarter:

·         Housing Major Works schemes

·         Support Housing in Eastbourne Programme

·         Coastal Defence Works

·         Play Equipment

·         IT software upgrades

·         Bandstand works.

The 2013/14 programme had now been re-profiled to reflect start dates and planned works.

Members noted that he HRA surplus variance was due to a reduction in income from rents and services changes due to the delay in the expected completion of the sheltered accommodation remodelling schemes, off set by savings in the provision for Bad Debts.  A prudent increase in the provision for Bad Debts was included in the 2013/14 budget to offset any effect of the new benefits regime. Rent collection performance had continued at prior year levels, and therefore the expected increase in rent arrears had not materialised as expected. The bad debt provision had been decreased to reflect this situation.  The projected outturn was showing a surplus of (£418,000) mainly due to the change in the bad debt provision and lower than anticipated interest rates on new and replacement debt taken during the year.

The committee were advised that the Collection Fund recorded all the income from Council Tax and National Non-Domestic Rates and its distribution to the major precepting authorities. With the introduction of the new system for the local retention of business rates, the performance of the Collection Funding was now included as part of the performance monitoring and results shared with major preceptors.

The projected Collection Fund for the year was detailed within the report.  This represented a variance over the quarter two monitoring of £61,000 and £7,000 for Council Tax and Business Rates respectively.

The Council Tax deficit was due to higher than budgeted take up of the Council Tax Reduction Scheme less a reduction in the number of Single Persons Discounts awarded. The deficit represents 0.19% of the gross debit due.  Business Rate income was down on that expected due to the number of successful appeals having been settled in the year and lower than anticipated growth in rateable values. The deficit represents 2% of the gross debit due.

The Annual Treasury Management and Prudential Indicators 2014/15 would be considered by Cabinet.  The report summarised the main points from the current economic background and interest rate forecasts.

Members noted that the variances within both the General Fund and HRA budget were well within tolerance levels, however risks within the budget would continue to be careful monitored.

Councillor Heaps, Cabinet Portfolio Holder, was in attendance to answer questions relating to Tourism and Leisure Services including catering.

The Senior Head of Infrastructure provided members with an update on the Waste Contract, Calls to the Council, Grounds Maintenance costs and Five Acre field railings.  Members requested further information regarding ‘mixing’ of recyclables frequency of street cleaning.  The Senior Head of Infrastructure agreed to provide following the meeting.  A copy of the briefing note is appended to the minutes.

The Chairman asked if there were any measures included in the proposed budget to assist with the creation of jobs, assistance for new business start-ups or attracting established businesses to Eastbourne. The Chief Finance Officer advised that aside from the capital programme, which did contain some direct and indirectly beneficial effects on the local economy, there were no new proposals in the budget specifically aimed at Economic Regeneration.  A total of circa £488,000 had been made available in the Economic Regeneration Fund.

The Chairman advised the committee that members would be receiving a report from officers regarding a review of the recent changes to taxi licence fees at the next Scrutiny Committee meeting in June 2014.

NOTED.