To consider the Council’s performance against revenue and capital budgets as at 30 September 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 30 September 2008 and an indication of the estimated outturn for the 2008/09 financial year. 

The Director of Resources presented the report.  She highlighted that since the last report the projected overspend had reduced from £1.671m to £1.292m.  This level of overspend could be met from the general balances leaving a reserve of £5.4 million.  This was above the minimum recommended level of the general balances of £4.5m.  However, she emphasised that Directors were working to balance their budgets.

She outlined the budgetary position for each Directorate as set out in the report.  She reported that the reduction in the bank base rate suggested that investment income would reduce in future years.  The potential effect was being considered in updating the Medium Term Financial Strategy.

In relation to the Capital Programme the Director of Resources highlighted the forecast outturn, the actual spend to date and the position on capital receipts as set out in the report.

In the ensuing discussion the following principal points were made:

·         Clarification was sought and provided on the schools balances held by the Council which stood at some £5.657m. 

·         Noting that Directorates were seeking to manage overspends by not filling vacancies, it was cautioned that care needed to be taken not to overburden existing staff, which might then lead to a counterproductive increase in sickness absence.  The Director of Resources said that each Director was managing the situation carefully to avoid any adverse impact on their teams.

·         The Director of Resources acknowledged the pressures on the adult social care budget as a demand led service, but noted the progress that had been made as a result of reconfiguring services.

·         In relation to concerns expressed about continuing health care funding as discussed at paragraph 14 of the report the Director of Resources said that the Council and Primary Care Trust (PCT) were looking at eligibility on a case by case basis.  There was agreement that the PCT would fund the continuing health care of those who were eligible for it.

·         The allocation of central government funding for the 2007 floods was noted.  In response to a question the Director of Resources confirmed that expenditure on the 2008 summer floods had exceeded the Bellwin Scheme threshold and a further claim would be made to the Government.

·         In reply to concerns expressed about continuing drainage problems, including instances where works had been carried out intended to deal with flooding problems but had proved ineffective, the Director confirmed that eligible claims under the Bellwin Scheme were retrospective and related to damage to infrastructure.  However, she would inform the Director of Environment and Culture about the concerns so that he could consider whether these could be addressed through the Capital Programme.

·         Clarification was sought on the £92,000 reserve in the Standards Fund and the underspend on dedicated schools grant, which was described in the report as comprising mainly applications for new banded funding.  It was agreed to request a written answer from the Director of Children’s Services.

·         A Member suggested that careful consideration needed to be given to the budget for child protection, the high profile nationally suggesting this may well need to be significantly increased. 

·         Clarification was sought on the funding paid to the Council associated with the detrunking of the A465, noting that the report referred to a £125k grant having been allocated to the Council for road maintenance.  It was agreed that a written answer would be given.

·         The reduction in income from car-parks was discussed.  The Director of Resources said that Councils across the Country seemed to be having the same experience.  Whilst the issue of a free bus pass to those over 60 years old was perhaps part of the answer, the position was complex.

·         Concern was recorded that the new waste disposal contract remained to be finalised.

·         In response to a request the Director agreed to establish whether confirmation had been received of the percentage of grant for the ARCH project that the Government Office for the West Midlands would claw back.

RESOLVED:  That the Committee’s observations on the budget monitoring report be noted.