Agenda item

Joint Report of the Corporate Director of Regeneration and Economic Development and Corporate Director - Resources – Finance Manager, Resources.

The Chairman introduced the Finance Manager, Resources, Azhar Rafiq to speak to Members in relation to the Quarter 2 Revenue and Capital Outturn 2014/15 (for copy see file of minutes).

The Finance Manager reminded Members of the areas reported upon, the General Fund Revenue Account, the Housing Revenue Account (HRA) and the Capital Programme for the RED Service.  Members noted the service was reporting a cash limit underspend of approximately £400,000 at Quarter 1 2014/15 and an underspend of £1.050 million at Quarter 2, against a revised General Fund Revenue Budget of £44.912 million.  Members noted the major variances fell within Planning and Assets, with the detailed explanations as set out within the report including an increased income from planning applications and increased occupancy at NETPark.  The Committee were informed that the service grouping was on track to maintain spending within the cash limit and Medium Term Financial Plan (MTFP) savings were incorporated into the outturn position.

The Committee noted that the HRA for 2014/15 had no major issues and the variances within the HRA being set out within the report including increased income as fewer Right to Buy sales and a lower void rate had meant additional rent and an underspend due to lower interest payments.  Members were reminded of the ongoing work in relation to the housing stock transfer, for the Council stock to be transferred from the 3 current organisations to 1 provider, transfer due to be completed by the end of March 2015.

As regards the Capital Programme, the Finance Manager explained that subsequent to revisions to take into account grant additions/reductions and re-profiling the budget now stood at approximately £96.566 million split between the General Fund (£46.533 million) and HRA (£50.033 million).  Members noted that the actual spend for the first three months of 2014/15 had been approximately £32.887 million, with a breakdown of the major capital projects given at Appendix 3 to the report.

The Chairman thanked the Finance Manager and asked Members for their questions on the finance report.

Councillors asked questions in respect of: security costs at a building at Whinney Hill; a breakdown of void rates by organisation; and any incentives in place to attract businesses to occupy Council owned properties.

The Finance Manager explained that he would check with the service as regards the ongoing security at Whinney Hill and report back to the Members and that the void percentages for the 3 housing organisations were: Durham City Homes, 1.32%; Dales and Valley Homes, 2.75%; and East Durham Homes, 1.56%.  Councillors noted that Officers from the regeneration section would be best placed to explain as regards the approach to marketing Council business properties and that he would report back to the member having consulted with colleagues.

Resolved:   

That the report be noted.