Agenda item

Context:

The purpose of this report is to provide Members with information on the forecast revenue outturn position of the Authority at the end of reporting period

4 which represents the financial outturn position for the 2015/16 financial year.

This report will also be considered by Select Committees as part of their responsibility to,

 assess whether effective budget monitoring is taking place,

 monitor the extent to which budgets are spent in accordance with agreed budget and policy framework,

 challenge the reasonableness of projected over or underspends, and

 monitor the achievement of predicted efficiency gains or progress in relation to savings proposals.

Recommendations:

That Members consider a net revenue outturn underspend of £676,000, an improvement of £878,000 on quarter 3 outturn predictions.

Members consider a capital outturn spend of £18.3m against a revised budget of £18.8million, after proposed slippage of £43.7 million, resulting in a

net underspend of £508k, of which circa £433k is available for recycling onto other projects/priorities which it is recommended will be held pending review of the additional pressures identified in paragraph 3.6.3.

Consider and approve the £43.7m capital slippage recommended, paying attention to those schemes included in paragraph 3.5.4 where slippage has been requested by the service manager but is not being recommended to slip (£170k), and notes the significant level of slippage required at outturn not manifest earlier in the year highlighting a concern in managers capital forecasting going forward.

Considers the use of reserves proposed and notes the significant decline on earmarked reserve levels at end of 2015-16 and the likely indication at end of 2016-17.

Approves the reallocation of reserve balances, as per paragraph 3.9.5 following the actuarial review of the insurance reserve and review of other small reserve balances, in order to address reserve pressures and the apportionment of general underspend in supplementing reserve levels as follows:

 £1,037 million to Redundancy and Pensions reserve

 £419k to IT reserves

 £350k to Invest to Redesign reserve

Approves the use of the Invest to Redesign reserve during 2016-17 totalling £30,835 as MCC’s additional contribution to enable the work on the City Deal initiative to continue.

Member scrutiny:

A Member asked when the cultural services review would be with the Committee. The Cabinet Member answered that a report was close to being brought to Cabinet and that the consultant’s report had been received and would shortly be going out to consultation.

A Member commented on the figures for Chepstow School and informed the Committee that the school was optimistic that the figures would improve and asked if the Finance team had the same confidence. The Officer informed the Committee that he had been in touch with the school’s governing body and advised they were approx. £100,000 short of where they need to be.

A Member asked if this would be the last consultation on Castles. The Cabinet responded that it would depend on the decision of Members. He advised that the report would come out with recommendation. The Cabinet Member mentioned that Caldicot Castle had recently hosted excellent events but this would not secure its long term future.

A Member asked where the £73, 000 funding for super-fast broadband was directed towards. An Officer replied that it was used for smart communities and digital access manager and also to support the production of digital tech and database of businesses, along with a website.

It was asked in terms of the LDP slippage, what was the rationale of £100,000 being deferred. Officers advised they would return to committee with an answer for this.

A question was raised regarding a solar park at Crick. The Cabinet Member responded that the decision to proceed was delegated to the Chief Officer and himself. The plan did not go forward as there were issues with connection to the grid. Officers are currently looking for a new plan and more information will be brought to select in due course.

A Member raised a question regarding slippage, reported as a good thing, however it was questioned if it was a good thing, as small schemes were cut which could have been maintained due to the underspend and asked is it a failure at budget setting.