Agenda item

Councillor G Elliot, Portfolio for Finance and Resources highlighted some key points within the report;

·         £785k Overspend at the beginning of the year. He mentioned that officers have responded well to reducing the overspend, however there are still significant challenges ahead and pointed out that they will need to be vigilant and ensure that the expenses are controlled and managed over the next 6 months.

D Skinner, Assistant Director for Finance and Resources brought Members attention to the amended report and apologised for the confusion. He added that the results of the reduction in the overspend involved some positive action that has been taken by officers.

Councillor Tindall referred to page 71, employees over budget - £419k (5.3%). He asked if this was an accurate estimate or if it would be changed in future years.

D Skinner pointed out that the estimate given was based on the re-modelled service. The re-modelled service is not delivering as expected but there is a performance monitoring group that will be meeting on a monthly basis to go through a joint action group concerning Waste Services, HR, Performance and Finance. They will look at a number of factors that are affecting the Council’s financial position. D Skinner said that his team are confident that this will be resolved by the end of the year.

Councillor Tindall asked for clarification that the anticipated savings can be sorted by 2016/17.

D Skinner confirmed that the anticipated savings would be corrected by 2016/17.  

Councillor Birnie referred to page 74, Line 169; an underspend of £1m on the Heart of the Maylands project and asked why the work is no longer required and the budget will not be spent.

D Skinner confirmed that the details regarding this have gone into a separate report which went to Cabinet last week.

The Chair referred to page 74, Line 149 – Underspend of £129k on the Car Park Refurbishment project and asked what 3 car parks will be refurbished.

D Skinner said that he would send the details of the 3 Car Parks onto Members. 

Councillor Imarni pointed out to Members that there were a number of slippages within the report. She asked if the money will be reinvested for the projects for 2016/17.

D Skinner said that if the projects are already slipping in 2016/17 then he anticipates that the funding will also be slipping.

Councillor Tindall referred to the estimated surplus on off street car parking. He asked if there would be any consideration given to use the surpluses for off street car parking or putting into the verge hardening fund that currently has no funding.

The Portfolio for Finance and Resources mentioned that there are plans in place next year for a budget for verge hardening.

Councillor Tindall referred to page 73 6.5 and the £130k over-achievement of income (114%). He asked the Portfolio Holder if the Council was anticipating a loss for the rest of the year.

The Portfolio Holder replied that this figure related to cash deposits.

Councillor Birnie referred to page 75 Line 159: the slippage of £1.63m on the Fleet Replacement Programme. He asked what the individual costs were.

The Portfolio Holder confirmed that the costs were a ¼ million, however they are in a position to source second hand machines which will hopefully reduce costs.

Councillor Guest referred to the £100k surplus which is expected in Planning Fees. She asked if this surplus was due to the developers trying to get their applications in before CIL kicked in. And since CIL has been introduced what affect has been implemented upon the Council.

D Skinner confirmed that there had been an increase in applications; however they are confident that these will be sustained for the rest of the year.

Outcome:

Members noted the report.

Action:

1.    D Skinner to provide Members with details as to why there was £1m underspend on the Heart of the Maylands Project.

2.    D Skinner to provide Members with the details of the 3 Car Parks that fall under the Car Park Refurbishment project.