Issue - meetings

The Leader’s Portfolio

To consider report FIN/607 of the Chief Executive and Chief Accountant (s151 officer), which was referred to the meeting of the Overview and Scrutiny Commission on 30 January 2023.

RESOLVED

That the Cabinet approves to the projected outturn for the year 2022/2023 as summarised in this report FIN/607.

Reasons for the Recommendations

To report to Members on the projected outturn for the year compared to the approved budget.

The Leader presented report FIN/607 of the Chief Executive and Chief Accountant (s151 officer)on the Quarter 3 budget monitoring, which set out a summary of the Council’s actual revenue and capital spending for the quarters to December 2022 together with the main variations from the approved spending levels and impact on future budgets.  It was added that the Council had made significant in year savings.

Councillor T Belben presented the Overview and Scrutiny Commission’s comments on the report OSC/308 to the Cabinet following consideration of the matter at its meeting on 30 January 2023, which included, recognising that the deficit on the HRA had increased from £218,000 to £1.019m, mostly all due to the forecast overspend on responsive repairs of £800,000. £350,000 of this was due to weather-related repairs, but the rest was due to increased material costs and the poor condition of properties being returned.

Councillors S Mullins and C Mullins spoke as part of the discussion on the report. 

RESOLVED

That the Cabinet approves to the projected outturn for the year 2022/2023 as summarised in this report FIN/607.

Reasons for the Recommendations

To report to Members on the projected outturn for the year compared to the approved budget.

To consider report FIN/607 of the Chief Executive and Chief Accountant (s151 officer).

The Commission considered report FIN/607 of the Chief Executive and Chief Accountant (s151 officer). The report set out a summary of the Council’s actual revenue and capital spending for the quarters to December 2022 together with the main variations from the approved spending levels and impact on future budgets.  It was added that the council had made significant in year savings.

During the discussion with the Leader of the Council and Chief Accountant, the following points were expressed:

Acknowledgement that for quarter 3 variance had increased from £900,000 to £1.198m which would lead to a transfer from reserves of £1.65m.  Similarly, recognition that the deficit on the HRA had increased from £218,000 to £1.019m, mostly all due to the forecast overspend on responsive repairs of £800,000.  £350,000 of this was due to weather-related repairs, but the rest was due to increased material costs and the poor condition of properties being returned. 

·         Confirmation was provided as to the main variances between the quarters, although offset by investment and operational properties, NASB vacancies, tree contractors and software licensing.  It was acknowledged that whilst creative and thorough recruitment was undertaken, some posts were difficult to fill and maintain.

·      Recognition that within the capital programme spend at end of Q3 was £20.654m against a budget of £37.461m. There was a projected slippage of £1m into future years across a number of schemes.

·      Clarity sought and obtained on the K2 Crawley income projection reduction.  It was acknowledged that recovery had been challenging and there was still progress to be made in order to have numbers return to pre-pandemic levels. Income projection was down £150,000 from Q2.  The deed of variation puts the financial risk on the council, and despite membership sales improving, the market for gym membership was more competitive and Everyone Active had reduced their membership fees to attract and retain members.  Utility costs were also higher and had significantly impacted.  It was noted that the OSC was shortly due to receive an update on the K2 Crawley contract.

RESOLVED

That the Commission noted the report and requested that the views expressed during the debate, were fed back to the Cabinet through the Commission’s Comment sheet.