Agenda item

Context:

A report was presented to the Committee to provide Members with information on the forecast revenue outturn position of the Authority at the end of period 2 which represents month 6 financial information for the 2016/17 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

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

Key Issues & recommendations to Cabinet:

That Cabinet notes the extent of forecast revenue overspend at period 2 of £839,000, an improvement of £529,000 on previous reported position at period 1.

That Cabinet expects Chief Officers to continue to review the levels of over and underspends and reallocate budgets to reduce the extent of compensatory positions needing to be reported from month 6 onwards.

That Cabinet appreciates the extent of predicted schools reserve usage and an anticipation that a further 4 schools will be in a deficit position by end of 2016-17.

That Cabinet approves a caveated use of reserves to finance £318,000 employment tribunal costs if the Council’s budget is not able to absorb the effect of this extraordinary expenditure over the remaining 6 months of financial year.

That Cabinet considers the capital monitoring, specific over and underspends, and importantly that Cabinet recognises the risk associated with having to rely on a use of capital receipts in the year of sale and the potential for this to have significant revenue pressures should receipts be delayed and temporary borrowing be required.

Member Scrutiny:

A Member asked about tribunal costs and was told that periodically MCC’s employment policies were found wanting. And an amount was awarded to an ex-employee of the council.

It was asked why we made fewer council tax benefit payments and were told that we are having less call to, it was not a statutory issue. It was asked if this benefit was not being publicised or are we budgeting too much for this.

It was asked why we are not achieving targets with Community Hubs.

A Member commented that Members are looking to meet with the Borough Theatre, with Officer Ian Saunders to clarify issues. This meeting will be opened up to all members.

A member requested the remit of Strong Communities clarified.

The Chair asked about an overspend in markets. We were answered that staff from Markets are now asked to stay later due to shared access with the Borough Theatre and other related issues. The Chair raised this as concern as markets have always previously been a valuable asset to the council and asked the Chair of Economy and Development to look at this.

The position of the community asset transfer in Chepstow was asked about and if we were on track to achieve this mandate. In answer the officer replied he was not familiar with this but will facilitate a reply. (ACTION M.H.)

The Members commented that they felt on the periphery of the process and feel that there is potential for MCC to do much better. Members were concerned that they were not asked for ideas/input and they could add value to the process if they got involved.

Members asked for an update on Raglan cattle market and the Head of Operations said he would speak to the Estates department and return to committee with an answer. (ACTION R.H.)