Agenda item - Financial Monitoring Report 2016-17

To provide an update on the year-end forecast for the 2016/17 County Council’s Revenue and Capital Budgets.

Cllr Ray Theodoulou, Cabinet Member for Finance and Change, provided an update on the year-end forecast position for the 2016/17 County Council’s Revenue and Capital Budgets.

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

RESOLVED to: -

1) Note the forecast revenue year end position, as at the end of May 2016 for the 2016/17 financial year, of a net £0.16 million underspend,

2) Note the forecast capital year end position of a small under-spend of £0.028 million for 2016/17.

3) Agree the following changes to the capital programme:

a) That the approved capital programme be increased by £0.3 million to fund capital works which will enable children centre buildings to be adapted and made suitable for the provision of a wider range of services. This increase will be funded by a revenue contribution from the Services to Families with Young Children Reserve.

b) That a new £3.1 million scheme for a programme of structural patching be included in the approved capital programme, financed from £1.006 million DfT Pothole Action Fund grant, £0.807 million approved 2015/16 revenue contribution, £1.0 million from the Communities & Infrastructure reserve and a £0.28 million transfer from the Minor Works budget.

c) That the approved capital programme be increased by £1.501 million for three flood alleviation schemes at Whaddon (£1.288 million), Anne Hathaway Drive, Churchdown (£0.071 million), and Medway Crescent, Brockworth (£0.142 million), financed by Flood Defence Grant Aid.

d) That £0.231 million be transferred from the unallocated Basic Need grant funding to a new Lakefield C of E Primary School project, within the approved capital programme.

e) That £0.5 million be transferred from the Future Secondary Basic Need allocation to the Pittville School project, within the approved capital programme.

f) That a new £2.4 million scheme for Bournside School be included in the approved capital programme, financed from the transfer of £2.187 million from the Future Secondary Basic Need allocation and £0.213 million from s106 funding, increasing the overall capital programme by £0.213 million.

g) That the £5.875 million scheme and the associated s106 contributions for a new school at Hunts Grove be removed from the approved capital programme, on the basis that the developer will be building the school.

h) That a new £1.409 million scheme for Social Care projects be included in the approved capital programme, financed from Social Care Capital grant, increasing the overall approved capital programme by £1.409 million.

i) that a new £0.51 million scheme for two Fire Appliances and a new £0.13 million scheme for Road Traffic Control Equipment be included in the approved capital programme for the Fire & Rescue Service, financed through a revenue contribution to capital from the capital financing budget.

Cllr Ray Theodoulou, Cabinet Member for Finance and Change, gave an update on the year-end forecast position for the 2016/17 County Council’s Revenue and Capital Budgets.

Cllr Theodoulou informed members that the forecast revenue year end position for 2016/17 had been forecast to show a net £0.16 million underspend and a forecast capital year end position with a slight under-spend of £0.028 million.

Despite the positive ‘overall’ revenue position, Cllr Theodoulou reported significant variances in some service areas. The two areas of greatest challenge included; Adult Services, currently forecast to show an overall breakeven position, (based on full use of the Adult Social Care Levy and use of the Care Act Reserve); and Children and Families, forecasting a £1.1m overspend, (reduced from £2.7m by the Vulnerable Children’s Reserve)..

Cllr Theodoulou explained that the financial pressure in Children and Families was mainly due to the increased number of children coming into care and the increasing complexity of many of the cases the council was having to respond to. Cllr McLain, Cabinet Member for Children and Families and Strategic Commissioning, informed members that this position was not unique, and that several other authorities were experiencing a similar number of number of children coming into care. Cllr McLain did not anticipate a reduction in the number of children coming into care and believed it would be necessary to consider retaining reserves to cover the necessary costs.

Cllr Theodoulou reported a capital budget of £91.6m, with current expenditure, (reported at the end of May 2016), at £3.5m. Members were advised that this rate of expenditure was expected to increase during forthcoming months.

Referring to changes in the capital programme, following approval of the MTFS at the council meeting in February 2016, Cllr Theodoulou identified three specific issues for members attention. These included: -

1) Creation of a £300,000 capital scheme aimed at ensuring Children’s Centre buildings can be adapted and made suitable for the provision of a wider range of services;

2) Purchase of 2 new replacement fire appliances, (at a cost of £510,000), to ensure continued firefighter and community safety;

3) Fund £130,000 towards financing the replacement of Road Traffic Collision equipment and ensure continuing road user safety.