Agenda item

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

The Service Manager – Finance presented the report of the Director – Finance and Corporate Services which detailed the quarter one position in terms of financial and performance monitoring for 2021/22. It was noted that this was linked to the closure of accounts process and previous financial update reports and includes the in-year variances along with variances resulting from Covid.

It was noted that income lost related to Covid-19 totalled £0.071m with in year efficiency savings of £0.394m and non-ringfenced grant funding £0.061m. It was stated that for this financial year, the overall budget variance including Covid related pressures and in-year efficiencies, was expected to result in an overall budget efficiency of £0.880m. It was noted that in regards to business rates the Council was expecting a surplus of £2.338m but that a significant proportion of this would need to be appropriated into the Collection Fund Reserves (£1.765m) to cover next year’s deficit arising as a result of additional Covid related business rates reliefs issued in the year. The Group were informed that additional pressures had been identified including a contribution towards a feasibility study into the pedestrianisation of Central Avenue in conjunction with Nottinghamshire County and a £1,000 payment per driver to refuse HGV drivers totalling £27k given the unusual market conditions and demand for HGV drivers and that this along with the £1.765m business rates results in £1.842m being used from reserves.

It was explained that budgets within the special expenses area had been impacted by Covid, particularly on the loss of income from hire of venues and bar sales mainly at Gamston Hall which was being used as a vaccination centre. These projections were included in the total Covid related budget pressure of £0.071m and the expected budget deficit for the year is £5k. It was explained that the Governments Sales, Fees and Charges reimbursement scheme had been extended to the first quarter of this year. It was estimated that the total reimbursement would be £46k and that part of the total estimated reimbursement had been allocated to the Special Expense fund to support the lost income from closure of facilities in the West Bridgford area.

It was noted that the Capital Programme monitoring statement and funding position projected a variance at this stage is £2.837m. Additionally, the original Capital Programme of £28.158m, plus agreed carry forwards of £6.533m, plus in-year adjustments of £0.911m g a revised total of £35.602m. It was explained that the net expenditure efficiency variance of £2.837m was primarily due to support for Registered Housing Providers £0.692m and Disabled Facilities Grant £0.218m amongst others. It was concluded that the projected financial position of the council was stable but that risks were still present over the winter period and uncertainties over funding and government policies.

The Communications and Customer Services Manager asked the Group to comment on the monitored tasks which were outlined in the Corporate Strategy and the performance measures within the Corporate Scorecard.

It was noted that there were four strategic performance indicators falling below target:

LINS18 Percentage of household waste sent for reuse, recycling, and composting

LINS23 Residual waste collected per household, in kilos

LICO64 Number of pavilion, community hall and playing field users

LICO66 Percentage usage of community facilities

There were four operational performance exceptions:

LIDEG01 Percentage of householder planning applications processed within target times

LIDEG17 Percentage of planning enforcement inspections carried out in target time

LIFCS61 Percentage of calls answered in 40 seconds

LINS38 Robberies per 1,000 population

It was explained that the collection of waste had been affected due to the pandemic and the fact that more residents were working from home. The knock-on effect being more waste created at home for collection.

It was explained that the number of community facility usage was up on this period last year but had been impacted by Gamston Community Hall being used as a vaccination centre, Gresham Sports Park being closed for redevelopment and the transferred management of Lutterell Hall on 1 May 2021. Additionally, with Covid-19 restrictions extended until 19 July 2021, it had an impact on the percentage of users returning to use the Council’s community buildings. For example, some users had deferred returning until September, some groups were working on reduced groups sizes and some groups particularly the vulnerable or older groups had been slow to return until confidence had been restored.

The Group praised the refuse team for their hard work and suggested that a new campaign be released to residents to let them know what can be recycled. However, it was noted that Nottinghamshire County Council were in the process of preparing for the recommendations of the Resources and Waste Strategy and the Environment Bill and so any new campaigns should not take place until proposals from central government have been considered.

The Group also praised the planning team, who were currently dealing with a 42% increase in householder planning applications. The Service Manager – Corporate Services agreed to provide the Group with a structure of the planning team with their contact details as there was currently a number of new members of staff.

The Group were disappointed that refurbishments to the Council’s community facilities had been delayed until 2022/23. The Group asked for an update following the recommendations of the Community Facilities Working Group. £2.338m of Business Rates surplus and refers to deficit created as a result of additional reliefs and if this deficit is funded by government.  The Service Manager Finance confirmed that it is fully reimbursed by Government.

The group questioned if there was a corresponding increase in planning income given the significant increase in applications and the Service Manager – Finance stated that there is an expected variance at Q1 that will bring the income up to pre-covid levels but the Q2 report will be based on more data and any expected variances above this level will be reported on.

A question was asked about the borrowing figure in Appendix C and why the projected outturn was exactly as the budget.  The Service Manager – Finance explained that the borrowing figure shown was internal borrowing and would only likely vary if there were significant movement in other funding sources for the capital programme.

The planned refurbishments to some of the Council’s properties in the Capital Programme had been deferred and it was asked if the works had deemed to be no longer necessary in the current year.  The Service Manager – Finance explained that the Property Team have assessed the urgency of planned works and prioritised the works in line with available resources.  The works will be reprofiled into next year.

Further information was requested on the options available for use of funding for Registered Housing Providers.  The Service Manager - Finance agreed to provide a summary of options to the group.

The Service Manager – Corporate Services stated that finance and performance management was scrutinised by the Corporate Overview Group so that the Group are able to see an overview of finance and performance monitoring which could also indicate topics for scrutiny.

It was RESOLVED that the Corporate Overview Group notes:

a)    The expected revenue budget efficiency for the year of £0.880m;

b)    The capital budget efficiencies of £2.837m;

c)    The expected outturn position for Special Expenses of £5k deficit in Appendix E

d)    The planned use of reserves at paragraph 4.3 (primary to meet the Collection Fund deficit as a result of business rates reliefs and the grants received in the General Fund to fund the deficit)

e)    The comments for performance exceptions and considers whether additional scrutiny is required

f)      The performance of strategic tasks

g)    The Group be provided with a list of potential options that Registered Housing Providers may spend the Capital Grant on

h)    The Group be provided with an update regarding the Community Facilities Working Group

i)      The Group be provided with a list of the members of the planning team and their contact details.