Agenda item

Presented by Azhar Rafiq, Finance Manager, Resources – Joint Report of Corporate Director Regeneration and Economic Development and Corporate Director Resources.

The Chair introduced the Finance Manager, Resources, Azhar Rafiq who was in attendance to speak to Members in relation to the Forecast of Revenue Outturn, Quarter 2, 2011/12 report (for copy, see file of minutes).

The Finance Manager, Resources explained that the report followed the usual format for budgetary reports and was the second of the 3 in-year reports, looking at the figures for the first 6 months of the financial year and the projected outturn for the year end.  Members noted the three components for the RED budget, those being:

·        RED Revenue Budget (General Fund) -           £42.680 Million (original £39.617 Million)

·        Housing Revenue Account (HRA) -                   £57.631 Million

·        RED Capital Programme -                                £110.418 Million (original £107.064 Million)

The Committee noted the variance to the General Fund was a £379,000 underspend, and that the major variances were the loss of rental income from businesses, under achieved income in relation to Building Control fees and underspend on staffing costs as result of Medium Term Financial Plan (MTFP) reductions.  Members noted that the approximate £400,000 underspend would be held against a number of commitments and pressures affecting RED services as mentioned and economic development initiatives, issues within Planning, condition surveys for asset management, transport commitments and housing commitments.

The Finance Manager, Resources noted that the HRA was solely funded by rental income and capital receipts from “Right to Buy” sales and not subsidised by Council Tax income.  Members learned that the HRA had several over and underspends that had balanced out to give an overall position the same as the Quarter 1 position.

The Committee noted the items reported under Risk Based or Volatility Reporting with the two areas that were not on track relating to the income from Building Control fees and rental income from Business Space, both due to economic conditions leading to a downturn in activity.

In relation to the Capital Programme, the Finance Manager, Resources explained that this represented £67.627 Million in respect of the General Fund and £42.791 Million in respect of the HRA.

Members noted that the revised annual budget showed a total projected spend for 2011/12, as at 30 September 2011, was 88% of budget leaving approximately £13 Million to be carried through to the 2012/13 Budget. 

The Chair thanked the Finance Manager, Resources and asked Members for their questions. 

Councillor M Williams noted the shortfall in Building Control fees, however there was a surplus in the Planning Application fees.  The Finance Manager, Resources reiterated that indeed the Planning fees were ahead of target, yet Building Control fees were behind and this could be as Planning was a Local Authority function whilst Building Control was open to competition.  Mr T Batson asked whether Council Building Control fees were greater than private sector fees and whether this could be addressed to make the Council more competitive.  The Finance Manager, Resources explained that perhaps original budgets and fee levels were not realistic in the current market and that they may need adjustment.

Resolved:    

That the report be noted.