The purpose of this report is for Cabinet to consider and approve:

a.             The final outturn position for 2009/10.

b.             The creation of new reserves in the 2009/10 accounts.

The Cabinet Member for Resources presented the report to Cabinet and advised on the overall position stating that a balanced year end had been achieved despite pressures from severe winter weather resulting in an additional £1 million spend.  In addition there was pressure on the social care budget resulting in use of the social care contingency requirement of £772k. 

Cabinet was reminded:

·         Of the £70 million that had been spent on capital schemes in 2009/10 such as flood alleviation and schools’ projects funded from various sources including government grants.

·         A review of the 2010-11 capital programme had taken place and unallocated funds had been allocated to the refurbishment of the Hereford Leisure Pool and to disabled facilities grants. 

·         As of 2010/11 that there was a £5.4 million general reserve. 

The Group Leader for the Alliance group referred to the use of £10 million in prudential borrowing utilised in 2009/10, Members were reminded that this was within the budget.  The Group Leader for the Independent group referred to the Connects programme and the original savings expected.  Cabinet was reminded of the strategic pause that had taken place which had resulted in not being able to deliver on both the expenditure and the savings timeline.  Since July 2008 the programme had recommenced and savings of £700k were achieved in 2009/10. In referring to mileage claims, Cabinet was advised that all claims were now paid on the basis of the shortest route. 

THAT Cabinet approved:

(a)        The final outturn for 2009/10;

(b)       The movements to new reserves outlined in the report;

·                Insurance Reserve

·                Pool Car Reserve

·                Local Development Framework

·                Area Based Grant

 (c)       The allocation of £1.5m from the capital programme for the maintenance & refurbishment of Hereford leisure pool; and

(d)       The allocation of £0.25m for disabled facilities grants.