Council and councillors

Report No. 96/2015

(Previously circulated under separate cover)

(KEY DECISION)

Report No. 96/2015 from the Director for Resources was received.

The Portfolio Holder for Places (Development and Economy) and Resources, Mr T King, introduced the report the purpose of which was to inform Cabinet of the draft outturn figures (subject to audit) for the financial year 2014/15 and provide an update on the status of the 2015/16 budget. In reporting the outturn, Cabinet and where necessary Council is being asked to carry forward some budgets to 2015/16, approve some additional requests for funding for 2015/16 and agree ceilings for earmarked reserves.

During consideration, the following points were noted:

1. The report demonstrated that the Authority was in a positive position having met its budget for the year 2014/15.  A significant amount of useful detail had been included by the report writer;
2. The report included Council Recommendations to carry forward funds not spent, to the following year;
3. The planned Transport Review should be completed as soon as possible as there were pressures in this area;
4. There were pressures around building control at Oakham Enterprise Park;
5. The cost associated with the number of interims employed in key service areas would be dealt with in a report in the Autumn; and
6. The recommendations would allow the Council to start planning for the future on a secure financial basis.

DECISIONS

1)    Cabinet NOTED the 2014/15 revenue and capital outturn position and general fund position at 31 March 2015;

2)    Cabinet APPROVED the revenue budget carry forwards of £446k as outlined in Appendix 1, para 1.25;

3)    Cabinet APPROVED the use of £432k from earmarked reserves to meet additional costs in 2015/16 as set out in Appendix 1, para 1.33;

4)    Cabinet APPROVED the use of £25k of General Fund to meet the additional cost of Insurance in 2015/16 as set out in Appendix 1, para 4.5;

5)    Cabinet RECOMMENDED TO COUNCIL that ceilings be set for each earmarked reserves as set out in Appendix 1, para 1.31;

6)    Cabinet RECOMMEND TO COUNCIL the contribution of £1m to earmarked

reserves from under spends in 2014/15 as set out in Appendix 1, para

1.22;

7)    Cabinet RECOMMENDED TO COUNCIL the establishment of a new earmarked reserve for Insurance and Legal costs with a ceiling of £100k as set out in 1.23;

8)    Cabinet APPROVED the capital budget carry forward of £50k for Disabled

Facilities grants as explained in Appendix 1, para 2.2;

9)    Cabinet NOTED the updated 2015/16 budget (taking into account carry forwards and decisions made by Cabinet/Council since the budget was

approved in February) set out in Appendix 1, para 4.2;

10)Cabinet NOTED the further potential savings and pressures on the 2015/16

budget as set out in Appendix 1, para 4.5;

11)Cabinet APPROVED the removal of the increased car parking charge for market days on a trial basis for 6 months; and

12)Cabinet NOTED that the MTFP will be updated when further funding announcements are made by Government.

Reason(s) for the Decision(s)

As the Council is required to make savings  ...  view the full minutes text for item 136

To receive Report No. 96/2015 from the Director of Resources.

Report No. 96/2015 from the Director for Resources was received, the purpose of which was to inform the panel of the draft outturn figures (subject to audit) for the financialyear 2014/15 and provide an update on the status of the 2015/16 budget and accompanying recommendations, which would be presented to Cabinet for approval on 21 July 2015.

During the discussion the following points were noted:

     i.                 Cllr King presented the report and indicated that the Council was in a good position overall as outlined in the report;

    ii.          An example of how the Quarterly budget monitoring reports would be presented in future had been provided for all Members of the panel.  The new format would provide more detailed information and would be easier to navigate.  It had been improved to take account of feedback provided by Councillors.  This was a pilot and constructive feedback was welcomed in order to further improve and develop the format of the information provided;

  iii.          It was common to have variances which could result in the accumulation of a surplus, or an overspend.  Variances were more likely in less stable budgets than demand led budgets, such as some that exist in People’s Services.  In the last few years the Council has generally accumulated a surplus;

   iv.          Where there was a surplus, it could be set aside for use in following years.  Where there was a long term reduction in spending on a particular budget, it could be reduced in future years;

    v.          The forecast details what budget holders believe they will spend in a full year on specific areas; if the budget is revised each quarter there is an audit trail to show all of the changes made.  Quarter 4 reflects the actual end of year position;

   vi.          Staff vacancies and spend on interims was a recurring theme in the Quarter 4 report;

 vii.          It was confirmed that some staff vacancies had proved difficult to recruit to.  The option of an interim may have also been considered because it provides a better solution that a permanent employee such as where skills are required to complete a short-term project, or a specific piece of work. IIn some cases an interim isless expensive in overall terms than acquiring a permanent replacement for a vacancy;

viii.          Further information regarding the number of interim Officers and plans for recruiting to these positions on a permanent basis was requested and will be presented at Q1;

   ix.          A report to review senior management pay arrangements would be presented to Council later in the year.  The panel requested that this report was brought to Resources Scrutiny before going to Council.  The Chair would look to consider how this might be achieved taking into account the timeframes;

    x.          A question was raised regarding investments in training for less senior officers and succession management planning.  The Director for Resources confirmed that the plans for a leadership and development programme were currently being finalised by Human Resources;

   xi.          The figures for the funding required  ...  view the full minutes text for item 127