Agenda item

The report of the Executive Manager – Finance and Corporate Services is attached.

The Financial Services Manager presented the report of the Executive Manager – Finance and Corporate Services which outlined the quarter two position in terms of financial and performance monitoring for 2020/21. This report presented the budget position for revenue and capital as at 30September 2020. This report provided an update to the report to Cabinet on 8September 2020 and included the in-year variances along with variances which had resulted from Covid-19. It was noted that this report did not take into account the effects of the implementation of further restrictions from 26 November and 2 December and did not include potential income from the reimbursement of lost fees and charges.

It was noted that for this financial year the budget gap including Covid related pressures and in-year efficiencies is expected to be at least £0.244m. The financial position to date also reflected a number of positive variances totalling £0.890m however, there were also several adverse variances totalling £2.667m. The majority of the adverse variances were from lost income from reduced demand relating to Covid such as facility hire (£0.139m), planning applications (£0.200m), reduced car parking income (£0.310m) and additional payments to Parkwood (£1.008m).

Additionally, the original Capital Programme of £18.936m has been supplemented by a net brought forward and in-year adjustments of £19.435m giving a revised total of £38.371m. The net expenditure efficiency position of £23.8m is primarily due to the projects of Bingham Leisure Centre and the crematorium. The Group were also informed that the Council was due to receive capital receipts of £20m in the year, primarily from the disposal of surplus operational and investment property: Abbey Road Depot, Land at Hollygate Lane and also from an overage agreement in place for Sharphill Wood site. However, Covid-19 had impacted on the progress of these schemes with receipts projected to be £4.4m in 2020/21.

The Service Manager – Finance and Corporate Services asked the Group to comment on the monitored tasks which were outlined in the Corporate Strategy and the performance measures within the Corporate Scorecard. The Group were reminded that some targets had been omitted as a way of measuring performance for those indicators that are being impacted by the coronavirus pandemic. There were two exceptions within the operational score card:

·       LICO41 Percentage of householder planning applications processed within target times

·       LINS19a Number of household waste collections missed twice or more in the last 3-month period

The Service Manager – Finance and Corporate Services explained that despite the percentage of householder planning applications processed within target times being an exception for this quarter, this was a direct result of the planning officers hitting targets for major applications and developments. The Group were also informed that additional resources were going to be assisting the planning team over the next couple of months in order to focus on householder planning applications. It was explained that the number of household waste collections missed had increased due to an increased number of agency staff who have had to be recruited in the absence of the Council’s refuse staff who had been off sick or isolating and that additional training had been provided so that the new staff were more familiar with properties which required assisted collections. 

The Service Manager also asked the Group to note the Council’s external recovery plan which was an internal document which would be regularly updated regarding how the Council will assist local businesses in recovery from the economic effects of the coronavirus pandemic.

Members of the Group urged the Council to refurbish the toilets of the Gamston Community Hall as soon as possible as it was a performing asset of the Council. The officer also agreed to amend the report to note that the ‘eat out to help out’ scheme took place in August, not in June. The Financial Services Manager also clarified that the support for registered housing providers had remained the same but was split over two years as there was a delay in delivering the programme.

The Group were informed that the adjustments to capital projects would increase spending potential in other areas or would be used to relive financial pressure in other areas.  It was also noted that due to a lack of casual swimmers at Parkwood Leisure Centre, they could not pay capital receipts as part of the management agreement with the Council. The Councillors also raised concerns about the projected £3.017m net surplus on Business Rates as a result of additional S31 reliefs and that this surplus would be transferred to the Organisation Stabilisation Reserve to offset the expected Collection Fund deficit in later years. The Financial Services Manager stated that the Council would replenish the reserve over the next five years. Councillors agreed to monitor the replenishment of the organisation stabilisation reserve. The Financial Services Manager also informed the Group that £500k would be match funded by all parties involved in the development corporation and that the government were prompt in reimbursing grants.

It was RESOLVED that

a) the projected net effect of in-year efficiencies (£0.497m) and Covid-19

pressures (£2.355m) and Covid Government funding (£1.614m) resulting in an expected net revenue deficit for the year of £0.244m be noted;

b) a projected £3.017m net surplus on Business Rates as a result of additional S31 reliefs and that this surplus be transferred to the Organisation Stabilisation Reserve to offset the expected Collection Fund deficit in later years;

c) the capital underspend of £23.8m of which £18.465m be carried forward: £17.965m to 2021/22 Capital Programme and £500k to 2022/23 Capital Programme;

d) the projected Special Expenses position with a projected deficit of £0.082m for the year to be financed by a loan from the Council as agreed by the West Bridgford CIL and Special Expenses Group be noted;

e) the 6-month trial to engage Waste Investigations Support and Enforcement to deliver enforcement of environmental crimes (following on from Communities Scrutiny Group discussions) be noted and

f) the identified performance exceptions be noted.