Agenda item

Note:              Councillor M. Snee left the Chamber at 7.08pm

 

The Committee gave consideration to a paper presented by the Deputy S151 Officer detailing the Quarter Three Budget Monitoring report for 2024/25, based on the forecast outturn as of 31 December 2024. The following details were highlighted.

 

Revenue

 

In relation to revenue budgets, the forecast outturn position was a net contribution to reserves of £536,000, which was an increase of £376,000 from the forecast position reported at quarter two. The increase was mainly due to uncommitted revenue contingency budgets of £367,000.  It was proposed that £250,000 of this be transferred to an earmarked reserve to support the ongoing maintenance of new capital assets. The details of this would be presented to the Committee for approval as part of the final outturn report for 2024/25, alongside other recommendations for use of the final outturn surplus to be discussed with Members and Officers before year end.

 

It was explained that there was also an increase in net interest receivable of £67,000 due to the current base rate being higher than the peak expected when the budget was set. Forecast pressure for housing benefits subsidy of £133,000 and NSIP £111,000 consultancy costs were provided as a worst case scenario and Officers were looking to reduce those pressures before the end of the year.

 

Members heard that, at quarter three, Officers were able to more accurately reflect forecast income for fee generating services and there were several new variances reported including gains for bulky waste collections and the big bin hire service and green waste subscriptions, offset by forecast shortfalls against income budgets for the crematorium, and street naming and numbering.

 

Capital

 

In relation to capital, it was noted that schemes were reporting a net £5.571m underspend against the revised budget. £5.379m was requested to be slipped into 2024/25, with the largest of those being £4.75m for the purchase of Scampton. Members were asked to approve the revised capital budget of £22.842m which included the amendments to the capital programme detailed at section 3.2 of the report. The full capital monitoring table was included at Appendix 1.

 

Fees and Charges

 

Members heard there were two new fees proposed for the crematorium from April 25, in relation to digital downloads of service. Notification of the statutory planning fees for 2025/26 had also been received, with the full schedule included within the report at Appendix 5. The majority of fees were increased in line with the assumptions applied to the income budgets for planning within the medium-term financial plan. Those fees proposed above an inflationary increase were subject to parliamentary approval and any amendments would be reported to Members.

 

Reserves

 

Following an amendment to the statement of accounts for 2023/24 Members were asked to approve an additional movement of £76,000 to the budget stability reserve.

 

Revenue Carry Forwards

 

It was highlighted that included in the report at section 2.5 there was a request for Members to approve the carry forward of underspend in revenue budget into 2025/26:

 

1.    to support the backfill and interim arrangements of the management structure, with the underspend from vacancies forecast to be around £150,000,

2.    to extend two LUF officer posts for a further six months, to the end of December 2025 at a cost of £68,000, and

3.    to extend the Cultural Events and Marketing Officer post for three months to the end of June 2025, at a cost of £13,000.

 

The forecast outturn position reported at quarter three included these carry forward amounts, pending approval.

 

To conclude, it was summarised that Members were asked to approve:

1.    The contribution to earmarked reserves for 2023/24 of £0.76m (section 2.4.1)

2.    The amendments to fees and charges – at 2.4.2

3.    The revenue carry forwards into 2025/26 listed at 2.5, and

4.    The revised capital budget of £22.842m

 

Members thanked the Officer for a thorough presentation of the report. With regard to the extension of the Officer positions delivering the Levelling Up Fund project work, it was enquired as to whether Members could be provided with additional information relating to the progress and transition work. With this in mind, the following amendment to recommendation (e) was proposed:

 

“Members approve the revenue budget carry forwards into 2025/2026 (2.5) however, on the grounds of due diligence and good governance, a decision on the extension of the LUF contracts as outlined in paragraph 2.5.2 of the report be delayed until further clarification for the need of the extensions be presented to, and agreed between, the Director of Planning, Regeneration and Communities, and the Chairman of the Corporate Policy and Resources Committee”

 

The proposal was duly seconded. It was then enquired as to whether the proposed three month extension of the Cultural Officer role was sufficient given the ongoing work within that area.

 

It was explained that the Levelling Up Fund (LUF) project work was progressing well, however there had been previous delays which had been communicated with the Committee at the time. It was confirmed that the document which had been created regarding the transition of LUF work over the coming months would be shared with the Committee. It was also confirmed that a three month extension within the cultural team would not be sufficient, however it would enable the team to further develop the cultural work programme. In response to a question relating to future extensions, it was explained that the term of employment could be reviewed and extended again in the future.

 

The Chairman noted that there had been a recent announcement of UKSPF monies, and the newly appointed Arts Officer post would increase capacity within the team.

 

With the proposed amendment having been seconded, the Chairman took the vote, and it was

 

            RESOLVED that recommendation (e) be amended to read as follows:

 

“Members approve the revenue budget carry forwards into 2025/2026 (as detailed in sections 2.5.1 and 2.5.3 of the report), however, on the grounds of due diligence and good governance, a decision on the extension of the LUF contracts as outlined in paragraph 2.5.2 of the report be delayed until further clarification for the need of the extensions be presented to, and agreed between, the Director of Planning, Regeneration and Communities, and the Chairman of the Corporate Policy and Resources Committee"

 

With no further questions or comments, the Chairman summarised the recommendations as printed, with the amendment as detailed above. Having been proposed, seconded, and voted upon, it was

 

            RESOLVED that

 

REVENUE

 

a)    the forecast out-turn position of a £0.536m net contribution to reserves as of 31 December 2024 (see Section 2) relating to revenue activity, be accepted; and

 

b)    the contribution to Earmarked Reserves 2023/2024 - £0.076m (2.4.1), be approved; and

 

c)    the use of Earmarked Reserves approved by the Chief Finance Officer using Delegated powers (2.4.2), be accepted; and

 

d)    the amendments to the fees and charges schedules for 2024/2025 (2.3.2), be approved; and

 

e)    the revenue budget carry forwards into 2025/2026 (as detailed in sections 2.5.1 and 2.5.3 of the report) be approved, however, on the grounds of due diligence and good governance, a decision on the extension of the LUF contracts as outlined in paragraph 2.5.2 of the report be delayed until further clarification for the need of the extensions be presented to, and agreed between, the Director of Planning, Regeneration and Communities, and the Chairman of the Corporate Policy and Resources Committee.

 

CAPITAL

 

f)     the current projected Capital Outturn position of £22.842m (Section 3), be accepted; and

 

g)    the amendments to the Capital Schemes as detailed in 3.2 be approved.

 

TREASURY

 

h)    the report, the treasury activity and the prudential indicators (Section 4), be accepted.

 

 

Note:              Councillor M. Snee returned to the Chamber at 7.26pm