Agenda item

R Baker presented this report. The purpose of this report is to outline the Councils final forecast as at the end of Quarter 1. The outturn position, section 2 provides an overview of the General Fund Revenue Account, which is all of the Councils day to day services excluding HRA. The position at end of quarter 1 is an overspend. Section 3 provides a breakdown of the budgets in the remit of this Committee, section 4 provides a summary of the Housing Revenue Accounts, so the tenants account, tenants income, repairs and maintenance.

Section 5 provides a summary of the Capital Programme including the new build programmes and other General Fund schemes.

R Baker was happy to take questions from Members.

Cllr Mahmood asked the officer to explain the difference between the various accounts, HRA, Capital etc for the benefit of the new members.

R Baker explained the various accounts and their function.

Cllr Mahmood asked how the Housing Revenue Account budget will be impacted in the future, considering the recent budget announcements.

R Baker explained that in terms with the rent policy and the 1% reductions there will be significant reductions to income for HRA. The impact of these reductions is being modelled and options are being reviewed for the New Build Programme and Investment programme.

Cllr Hearn refereed to page 5, 3.2 – Savings on premises, please could this be explained.

E Brooks explained that the new Homelessness Strategy that was launched last year emphasised the work undertaken to reduce homelessness. In the early stages when they know someone is going to be made homeless they intervene early to avoid homelessness situation if possible. He went onto say that they have invested in the private rented sector and worked with private landlords and also work around mediation with families therefore all this is good news.

Cllr W Wyatt-Lowe asked, Woolmer Drive is being used for this purpose you say and then you go onto say that this particular place is now full, will this not lead to greater problems?

E Brooks said both Woolmer Drive and Lays Road are currently full; there are peaks and troughs in demand, so they are not always full. They can’t predict when they will be full or not but they have noticed trends.

Cllr Imarni referred to page 5, 5.3. How did the overspend come about and how are they not forecasted.

E Brooks explained that when a housing scheme has planning approval not all the details are agreed and things can be change, and this is where the over spend comes in.

Cllr Mahmood added that the overspend on things like the kitchen at The Elms should have been budgeted for, and requested that in future schemes e provision is made for such things so that schemes can be brought in budget.

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E Brooks said it’s safe to say they don’t think they will be building another Hostel like The Elms in the near future and thus so it was a one off scheme as such. The facilities were under estimated for such a large scale project.

Cllr W Wyatt-Lowe referred to pages 7, 5.3. What’s been done for budget mistakes and errors, how will this be stopped in the future.

R Baker reiterated what E Brooks had said and these costs had come prior to the planning permission being granted. R Baker said it’s not a mistake it’s that they don’t have that level of detail to start with. The scheme and details are refined as they go through the process.

Cllr Imarni asked if the budgets forecasts are requested to be so tight that any risks cannot be included ?
As most people would prefer for financial risks to be included in the original budget and welcome any underspend that occurs. Then surely it's better to underspend than show over spends and the end of the project"

Elliot Brooks replied that the budgets are submitted very early on in the process and that once the contracts are awarded additional costs sometimes arise as the building contractors and surveyors raise issues that are specific to the particular area of land and projects. At that point the original budget request is submit, the team will forecast as accurately as possible based on the information they have available at that time. Elliot Brooks advised that it is at the later stages of planning and development that additional financial risks and requirements are brought to light.

Cllr Imarni commented that having spent time with Elliot's Brooke's team she had noted that they are incredibly competent and therefore somewhere they would have noted the possible risks and would it be possible to reflect these in this report.

There was a query as to whether this report was the correct place to highlight this and Elliot Brooks advised that they have separate reports and documents where risks are raised assessed and monitored weekly

E Brooks to update committee on all of the schemes and where they are at with it.

Cllr Mahmood referred to 4.3 and asked if the savings shown because the cleaners have left and we didn’t replace them or did we have a vacancy and decide not to fill it.

E Brooks said it related to 2 cleaners that they put in the budget and structure for the removal of fly tipping within the entrances to communal areas; this didn’t happen so that’s what this is.

All areas of the council have a 5% vacancy provision requirement its means its expected vacancies throughout, these haven’t been met due to vacancies not coming up or recruiting quicker than normal or putting people in place like an internal transfer to do that job.

R Baker explained that the pressure on the vacancy provision is likely to reduce as the year goes on due to staff turnover.

Cllr Mahmood referred to page 14 at the financial report on the new build. He requested an update update on the new build, schemes and costs, at some point in the future.

E Brooks to have a chat with Richard outside of this meeting regarding operation issues and financial.

Actions: As noted above.

Outcome: The report was noted.