To report to Strategic Monitoring Committee on the Council’s performance against revenue and capital budgets as at 31 December 2008 and provide an indication of the estimated outturn for the 2008/09 financial year. 

The Committee considered the Council’s performance against revenue and capital budgets as at 31 December 2008 and an indication of the estimated outturn for the 2008/09 financial year. 

The Director of Resources presented the report.  He informed the Committee that there was now a projected underspend of £238k on the revenue budget compared to the projected £1.53m overspend in September 2008.  This improvement in the financial position was attributable to ongoing work to deliver recovery plans the application of non-recurring funding and underspends on treasury management activities.

He noted that the position on borrowing had improved because of slippage on the capital programme and a change to the capital accounting requirements.  The return on investments had also been slightly better than expected despite lower interest rates.

He commented that the position on adult social care might deteriorate, noted that it was not proposed to draw on the winter maintenance reserve and drew attention to the work within the strategic housing service in reducing expenditure on bed and breakfast accommodation.

In terms of the capital programme he reported that expenditure to date represented 49% of the total expenditure forecast.  There were a number of reasons for this, as set out in paragraph 5 of the capital programme budget monitoring report.

In the ensuing discussion the following principal points were made:

·         The additional expenditure on Customer Relations Management licenses was raised.  The Director of Resources explained that a review had shown that insufficient provision had been made for the necessary number of users in the original business case.  He undertook to provide a reply seeking assurance that people who left the Council’s employment were being removed from the list of licensees.

·         The implications of the reduction in income from planning applications were raised.  It was noted that development control staff were currently being redeployed to other tasks that would need to have been carried out in any event, such as work on the Local Development Framework and energy efficiency assessments.  A Member suggested that staff should be deployed to ensure that all S106 monies owed to the Council were realised.  It was confirmed that vacancies were not being filled and the position would be monitored.  It was suggested that information on redeployments might usefully be included in Members’ news.

·         Clarification was sought on the additional expenses on office accommodation that had been incurred.  The Director of Resources replied that it was difficult to be precise in calculating costs associated with office moves.  Delays in vacating some buildings had led to some dual running costs. In response to a further question about progress on the accommodation strategy he said that the intention was to inform the Committee of the position as soon as commercial confidentiality permitted.  He also confirmed that the revenue consequences of the borrowing associated with the project were factored into the cost of the scheme.

·         It was asked whether the Council would receive all the grant funding associated with the Ross flood alleviation scheme that it had expected.  The Director of Resources replied that he was seeking assurances that the necessary information was being provided to the Environment Agency to ensure that the Grant was secured. 

RESOLVED:  That Cabinet be advised of the Committee’s observations.