Agenda item

Report of the Director – Finance and Corporate Services

The Communications and Customer Services Manager presented the Q3 Performance Scorecards.

The Communications and Customer Services Manager noted that there were five performance exceptions on the operational scorecard. He explained that the percentage of householder planning allocations processed within target had been impacted by Christmas office closures and staff shortages but that as the overall number of applications being received was decreasing it was expected that performance would increase. In relation to complaints responded to on time, he said that performance had been impacted by the complexity of complaints and that any delay had a greater statistical impact due to the low number received overall.

In relation to calls answered in 60 seconds, the Communications and Customer Services Manager said that this had been impacted by a high number of calls about the Government’s energy rebate. He confirmed that the Council continued to look at ways to reduce calls and signpost traffic to alternative and online resolutions. In relation to the income generated by parks and playing pitches, he explained that the Council’s new online booking system was in operation and it was expected that this and upcoming marketing would lead to an increase in income generated.

The Chairman referred to customer contact and the need for the Council to adapt to meet future expectations. The Communications and Customer Services Manager confirmed that the Council continued to look at how to best educate residents in using online solutions. He said that Rushcliffe had the eldest demographic in the County which made it important for the Council to provide a balance between contact options.

The Group asked about methods used to educate residents and the Communications and Customer Services Manager said that Council was in the processes of gathering data about how and why residents contacted the Council to explore how to best provide education. It was expected that a combination of in person assistance and telephone conversations would be provided. It was likely that contact needs would change over time with an increasing demand for fast access to services and answers.

The Group asked about usage of sports pitches and the Communications and Customer Services Manager said that they were well used through the year and the Council was hoping to increase this through marketing, particularly with the installation of the 3G pitch at Gresham.

The Finance Business Partner presented the Q3 Financial Report. She said that there was a predicted net revenue budget efficiency of £1.723m, mostly as a result of Business Rates Pool, additional investment income and additional new burdens grants. It was proposed that the efficiency be earmarked for additional cost pressures. She said that there was also a capital budget efficiency expected of £3.758m.

The Finance Business Partner referred to Appendix A of the report which summarised the £1.723m efficiency and proposals for utilisation and also took the Group through the main variations from revenue efficiencies and pressures as set out in Table 1.

In relation the to the Capital Programme, the Group was informed that with carry forwards and other adjustments, this had increased from £14.6m to £22.2m and that the current projected outturn was circa £18.5m, which gave an estimated underspend of £3.7m.

In providing an update about pressures faced by the Council, the Finance Business Partner said that staff pay negotiations were now complete resulting in a cost of approximately £0.55m. This represented a significant annual cost pressure to the Council now forming part of the MTFS to be approved by Council in March. In addition, the potential associated impact on service provision contracts such as leisure were being monitored.

The Group was informed that knock on impacts from the cost of living pressures were also being monitored, in particular for any reductions in Council Tax collection (85.33% collected compared to 85.46% last year) and Business Rates (87.3% collected compared to 83.7% last year). Inflation was set to peak at 11% which could also impact on general costs and on contracts due for renewal. She said that overall and given the challenges it was a mostly positive position that would be monitored closely going forward.

In relation to the Transformation Programme, the Finance Business Partner informed that the two most significant items were the Crematorium (£0.2m) and Bingham Arena (£0.2m). Due to delays in delivery due to external factors with the contractors the current projection was currently a shortfall of £0.284m for the Crematorium and £0.163m for Bingham.

The Group was informed that whilst pooled funds continued to fluctuate, the returns were stable and represented 65% of the Councils return on overall investments forming long term investments as part of the Council’s Treasury Management Strategy.

The Group asked about monies allocated for housing providers and the Service Manager Finance explained that a developer either had to provide affordable housing or contribute S106 funding to create affordable housing stock which would then be managed by the Council’s housing association provider.

The Group asked about staffing in the Planning Team and the Finance Business Partner confirmed that the Council was currently utilising agency staff to fill vacancies and meet specific project demands, which was common practice. The Group was informed that there was allocation within the budget to cover these costs, including from fees income and staffing underspend due to vacancies. It was noted that planning applications were falling which would reduce pressure on the team. The Group was also informed that there was general difficulty recruiting within this sector and that some people preferred flexible agency work rather than a more fixed permanent position, but the Council sought to provide an attractive salary and working culture.

The Chairman asked about upcoming projects that may impact on the budget. The Service Manager Finance said that Council’s programme over the last few years had involved large capital projects but that going forward projects were smaller and so slippage would be less likely and be less impactful. The Chair confirmed that the Council carried out sound financial management to ensure that there were funds available to cover eventualities.

It was RESOLVED that the Group noted:

a)    the expected revenue budget efficiency for the year of £1.723m and proposals to earmark this for cost pressures (para 4.1).

b)    the capital budget efficiencies of £3.758m including various re-profiling stated at paragraph 4.7, included in the MTFS to Full Council.

c)    the expected outturn position for Special Expenses to be £3.2k below budget (para 4.5).

d)    considered whether scrutiny was required for identified exceptions.