Agenda item

(i)         Forecast of Revenue Outturn Quarter 4, 2011/12.

(ii)        Forecast of Revenue Outturn Quarter 1, 2012/13.

Presented by Azhar Rafiq, Finance Manager, Resources – Joint Report of the

Corporate Director of Regeneration and Economic Development and the

Corporate Director of Resources.

The Chair introduced the Finance Manager, Resources, Azhar Rafiq who was in attendance to speak to Members in relation to the Quarter 4 2011/12 and Quarter 1 2012/13, Revenue and Capital Forecast Outturn reports (for copy see file of minutes).

Members noted that the overall 2011/12 Outturn report had been reported to Cabinet in July 2012, with the report attached being for the RED Service.  The Finance Manager explained that the report  covered three areas of spend managed by the service grouping, the General Fund Revenue Budget, the Housing Revenue Account (HRA) and the Capital Budget with a cash limit underspend of approximately £600,000 against the revised annual General Fund Revenue Budget.  Councillors noted key issues being the low letting numbers of industrial units and also reduced income levels in planning services arising from building control activity. .  As regards the HRA, it was explained that the budget showed a slight surplus overall, with narrative on  variances set out within the report.  The RED Capital Programme for 2011/12 had been revised to approximately £92.4 Million; with the actual spend at year end being around £80 Million, split between the General Fund and HRA, £37 Million and £42 Million respectively. The Finance Manager referred Members to Appendix 4 of the report which provided a detailed narrative of progress made with major schemes contained within the RED capital programme.

The Chair thanked the Finance Manager for his presentation and asked Members for their questions on the 2011/12 report.

Councillors raised issues regarding the underspend in the Capital budget, planning staffing and costs associated with parking services.  The Finance Manager noted that there are less applications as regards planning as a result of the depressed market conditions and that staffing levels had been adjusted in line with planned Medium Term Financial Plan (MTFP) savings. .  In relation to a query on a £100,000 overspend on third party payments on parking services,  it was noted that Parking Services were contracted out to an external provider , and the additional costs were for NCP.

The Finance Manager referred Members to the report setting out the Quarter 1 2012/13 Forecast Outturn   for the RED Service, noting a tighter cash limit underspend of £100,000 against the revised annual general fund revenue budget.  Members noted the variances as set out within the report with particular emphasis on the Planning service and Transport service areas.  Although there were some income pressures on building control, this was largely offset by additional planning fee income, and there were also underspends on a range of supplies and services budgets within the service. As regards to the Transport overspend,  this was largely due to concessionary fares bus pass administration costs  as a large number of passes were coming up for their 5 year renewal.  The Committee were informed that the HRA for 2012/13 was on track, with a  surplus fo around £1m despite a large demand and projected overspend for repairs and maintenance in the Durham City area. The surplus would be used to finance the capital programme instead of borrowing to help keep interest costs down.

Councillors noted that the capital budget was approximately £100 Million split between the General Fund (£55 Million) and HRA (£45 Million) with the early indications being that the outturn spend would be in line with the revised budget.

The Chair thanked the Finance Manager for his presentation and asked Members for their questions on the Quarter 1 2012/13 report.

The Committee raised issues regarding the delays with the capital programme and asked whether this money was carried forwarded or was it unable to be spent due to a lack of staff to carry out the requisite work.

It was noted by Members that capital budgets were more difficult to forecast than revenue budgets, although the HRA capital programme being more straightforward to project. The Council’s Head of Strategy, Programmes and Performance, Andy Palmer added that there was no unallocated funds, and that capital budgets could vary by the end of a year, again depending upon market forces, schemes may not be able to be taken ahead, and some schemes may be delivered over several year’s  and  require phasing.  It was suggested that members receive a presentation at a future meeting providing an overview in relation to the Capital Programme including a breakdown of minor schemes.

Resolved:    

(i)         That the report be noted.

(i)         That a presentation providing an overview of the Capital Programme including a breakdown of minor schemes be given to a future meeting of the Economy and Enterprise Overview and Scrutiny Committee.