Issue - meetings

Draft Financial Monitoring Report 2015-16

Meeting: 11/11/2015 - Cabinet (Item 8)

8 Financial Monitoring Report 2015-16 pdf icon PDF 223 KB

To provide an update on the year-end forecast for the 2015-16 Revenue and Capital Budgets, and make any consequential decisions.

 

Please note:

 

Please note that this report contains exempt and non-exempt information. If Cabinet wish to discuss the exempt information, consideration should first be given to whether the public should be excluded from the meeting by passing the following resolution:

In accordance with Regulation 4(2)(b) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012, the public to be excluded from the meeting for this item of business because it is likely that, if members of the public were present, there would be disclosure to them of exempt information, and the public interest in withholding this information outweighs the public interest in disclosing the information to the public.

The reason for the information being private is because:

‘the relevant information relates to the financial or business affairs of any particular person (including the Authority holding that information (Paragraph 3, of Schedule 12A of the Local Government Act 1972)’

Decision:

Cllr Ray Theodoulou, Deputy Leader and Cabinet Member for Finance and Change, gave an update on the year-end forecast for the 2015/16 Revenue and Capital Budgets before seeking approval on several consequential decisions.

 

One of the decisions related to approval of a £17 million one-off financial contribution towards the residual waste project, seeking funding from revenue reserves to mitigate the cost of delay in the annual revenue costs of waste over the life of the project.  

 

Before considering the report, Leader of Council, Cllr Mark Hawthorne advised Cabinet that, if it should need to discuss the contents of the exempt information, (Appendix A), relating to this item, consideration would have had to have been given as to whether the press and public should be excluded from the meeting in accordance with Regulation 4(2)(b) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012. Cabinet confirmed that it was content to consider the report without making reference to the exempt information.

 

Having considered all of the information, including known proposals and reasons for the recommendations, Cabinet

 

RESOLVED to: -

 

1)    Note the forecast revenue year end position as at the end of August 2015 for the 2015/16 financial year of a net £3.9 million overspend, and mitigating actions being taken.

 

2)    Note the forecast capital year end position of a £4.9 million underspend for 2015/16, and recognises that this is the result of slippage in capital projects and that the total capital programme budget remains unchanged.

 

3)    Agree a revenue contribution to capital from the Business Support Services Budget of £0.15 million to support the Archives capital project, which is largely funded from the Heritage Lottery Fund.

 

4)    Agree £0.3 million of approved capital grant funding be transferred to the Thrupp Primary School project.

 

5)    Approve a £17 million one-off financial contribution to the residual waste project, funded from revenue reserves to mitigate the cost of delay in the annual revenue budget for the project over 25 years.

 

6)     Authorise the Director of Communities and Infrastructure to agree and sign the deed of variation restatement of the residual waste contract.

Minutes:

Cllr Ray Theodoulou, Deputy Leader and Cabinet Member for Finance and Change, gave an update on the year-end forecast for the 2015/16 Revenue and Capital Budgets before seeking agreement on several consequential decisions.

 

Cllr Theodoulou referred to the recommendations on pages 51 and 52 of the report and explained that he would be presenting the recommendations in two parts, the first, to concentrate on the ‘housekeeping’ elements of the report, including an update on the year end forecast for the 2015/16 Revenue and Capital Budgets, and the second, relating to the residual waste project.

 

Before considering the report, Leader of Council, Cllr Mark Hawthorne advised Cabinet that, if it should need to discuss the contents of the exempt information (Appendix A) that accompanied the report for this item, consideration would have had to have been given as to whether the press and public should be excluded from the meeting in accordance with Regulation 4(2)(b) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012. Cabinet confirmed that it was content to consider the report without making references to the exempt information.

 

Cllr Theodoulou reported an overall year end revenue forecast position of a £3.9 million over-spend, equivalent to 0.9 per cent of the net budget, (based on actual expenditure at the end of September 2015 and forecasts made in October 2015). Within this overall forecast, Cllr Theodoulou reported an over-spend of £4.3 million, (2.9 per cent of the net budget), in Adult Services, and £2.6 million, (2.6 per cent of the net budget), in Children and Families Services. Cllr Theodoulou explained that the Adult Services forecast was dependent on the council making further cost savings, (to be delivered under the new management arrangements outlined in the report), and that a financial recovery plan had been put in place to offset potential increases in the number of children in care in Gloucestershire.

 

Having updated members on the current financial position, Cllr Theodoulou proposed a revenue contribution of £0.15 million from the Business Support Services Budget to support the Archives Capital Project, and a transfer of £0.3 million of approved capital grant funding to the Thrupp Primary School Project.

 

He also proposed a £17 million one-off contribution from the capital fund reserve to mitigate the cost of delays in the residual waste project. Cllr Theodoulou referred to some of the challenges the council had encountered since commencing the project 3 years ago, including escalation of costs attributable to the project through inflation.

 

Outlining two options from which to finance the costs, the first, to borrow money entirely from the banks, and the second, to use that part of the capital reserve not otherwise allocated for investment, Cllr Theodoulou recommended Cabinet take the second option. This would allow the council to reduce its overall borrowings and give the same rate of return as that required by the banks. At the end of the financial period, the energy to waste plant would revert to ownership by the County Council. In  ...  view the full minutes text for item 8