Agenda item

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

The Chair introduced the Finance Manager, Resources, AzharRafiq who was in attendance to speak to Members in relation to the Quarter 3, Revenue and Capital Forecast of Outturn 2012/13 (for copy see file of minutes).

The Finance Manager noted the areas reported upon would be 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 under spend of approximately £615,000 for 2012/13 based on the Quarter 3 forecast outturn.  Members noted the major under spend fell within Planning and Assets, with the detailed explanations as set out within the report.  The Committee learned that there was improvement with the Building Control position, underachievement in relation to income from property in assets, mitigated by savings in staffing costs and other income generation.

The Committee noted that the HRA was on track; with the main items of note being overspends on repairs and maintenance due to the inclement weather conditions and also from costs as a result of some specific gas boilers that were out of warranty in the Durham City area.  Councillors were reminded of the usual volatility reporting arrangements, noting improvements in the position regarding Planning fees and concessionary fares.

As regards the Capital Programme, the Finance Manager explained that the budget now stood at approximately £95.380 Million split between the General Fund (~£49.907 Million) and HRA (~£45.473 Million) with the spend for the first 9 months being approximately £61.616 Million, 65% of the total revised budget.  It was stated that the first 6-7 months of the General Fund capital budget usually had a lower profile of spend when compared to the later months of the financial year.  Members noted some of the areas of the programme including the refinancing of Newcastle International Airport Limited, Durhamgate, Housing renewal and the Local Transport Plan.

The Chair thanked the Finance Manager for his presentation and asked Members for their questions on the Quarter 3 2012/13 report.

Councillors raised issues as regards the overspends in the agency costs in transport, decreased CRB income, underachievement on property income in town centres and the scheduling of boiler repairs in order to have them functioning and in place to help reduce winter fuel bills.

The Finance Manager noted that the agency staff was a short-term support whilst staffing was being reviewed, with this matter being addressed.  It was added that the CRB income related to Home to School transport and that the value was lower than previous years.  The Finance Manager noted that there would be a planned programme for the next financial year in respect of boiler repairs/replacements.

Councillor M Wilkes referred to the position relating to the overspend on the Durhamgate project and noted his concerns as regards Members not being informed of overspend earlier and Members not being given a breakdown of the costs.  The Finance Manager noted that a report on the matter would be brought to Cabinet in due course, with the Head of Strategy, Programmes and Performance, Andy Palmer adding that as the matter was subject to an ongoing legal issue; there was a need to await the outcome prior to information being brought forward.  The Head of Strategy, Programmes and Performance noted that the project would lever in around £200 Million of private sector investment.  Councillor M Wilkes accepted that there was the issue of the ongoing legal matter, however, reiterated that Members should have been informed earlier, with the relevant Portfolio Holder having been involved, and that it could be for the Scrutiny Committee to strongly request the Portfolio Holder to attend a future meeting in this regard.

Resolved:    

That the report be noted.