Agenda item

Report of the Director – Finance and Corporate Services

 

Financial Update

 

The Finance Business Partner presented the Council’s quarter three financial position for 2024/25.

 

The Finance Business Partner informed the Group that at quarter three there is a predicted a net revenue efficiency of £2.164m, with significant variances highlighted in table 1 of the report. This represented a variance of 14.23% against a budgeted Net Service Expenditure and is proposed to be earmarked for any additional cost pressures and financial challenges, such as Simpler Recycling and Local Government Reorganisation.

 

The Finance Business Partner reported that there was a capital budget underspend projection of £4.4m, which includes rephasing of £0.556m to 2025/26 budget and other variations including £1.5m Land Acquisition whilst the Council continues to explore opportunities for suitable land for carbon offsetting.

 

The Group were advised that the overall budget variance is expected to be an efficiency of around £2.164m with proposals to earmark the in-year efficiencies for specific reserves as detailed at Appendix A of the report. At table 1 within the report the Group were provided with a summary of the main pressures and efficiencies with a further full summary of all significant variances at Appendix B of the report. At table 2 in the report, the Group were provided with the expected use of the projected underspend, including IT contracts and Treasury Capital Depreciation Reserves. The Group also noted the Organisation Stabilisation Reserve which highlights the uncertainty of Local government Reorganisation.

 

In concluding, the Finance Business Partner advised that the current projected overall variance does mean that any borrowing requirement can be met from internal resources with no need to borrow externally for this financial year.

 

Performance Monitoring

 

The Communications and Customer Services Manager presented the third report of the new Corporate Strategy 2024-27 and the performance monitored by each theme. A full corporate scorecard was provided at Appendix F attached to the report.

 

With regards to the Environment, the Group were advised of seven performance indicators, two of which had not met their target as follows:

 

Percentage of household waste sent for reuse, recycling and composting – It was noted that there had been a considerable drop in garden waste tonnage collected, which has an adverse effect. However, overall recycling rates from both the grey and blue bins are consistent year on year.

 

Percentage recycling contamination rate – this has arisen from changes made to how contamination is measured by Veolia and this is being investigated by officers.

 

The Communications and Customer Services Manager advised the Group that further educational campaigns via the Council’s social media platforms are planned to address some of these issues.

 

With regards to Quality of Life the Group were advised of 11 performance indicators, with one indicator not meeting its target as follows:

 

Percentage usage of community facilities – the usage for quarter three is 32.3% against a usage target of 50% - whilst the percentage usage of community facilities has not met its target this has ben offset by the significant usage increase at the Council’s pitches, primarily at Gresham Sports Park.

 

The Communications and Customer Services Manager informed the Group that officers were working hard on two projects to increase usage. The first being a complete refurbishment of the Sir Julien Cahn Pavilion at West Park and secondly the full replacement of the AV equipment at Rushcliffe Arena to reduce IT related issues and improve the productivity of the system for external bookings and income.

 

With regards to Sustainable Growth the Group were advised of 11 performance indicators all meeting their current targets.

 

With regards to Efficient Services the Group were advised of 25 performance indicators, with six exceptions not meeting their targets as follows:

 

Number of cremations held at Rushcliffe Oaks – Cremation numbers were reprofiled across the year reflecting the trend as seen in year one. However, feedback from funeral directors is that funeral services are quiet across the board, and this will be taken into consideration when profiling for 2005/26. The Communications and Customer Services Manager added that the facility and team continue to receive positive feedback, and the facility is seeing significant growth in numbers.

 

Income from all activities at Rushcliffe Oaks – Income projections are based on cremation numbers and the projection for year-end has been reduced. However, if numbers exceed this target in the remaining months the Council will see growth in income.

 

Average number of days to process a change in circumstances to a housing benefit claim – this was reported to be a small anomaly

 

Percentage of Councillors completing e-learning mandatory e-learning modules this municipal year – it was reported that there had been no e-learning modules completed since November. Councillors are required to complete modules during their 4 year term and early completion is encouraged.

 

Percentage increase in digital transactions – the Communications and Customer Services Manager advised that there is a constant variation from month to month. However, increases were shown from e-form completion, payments via the website and logins to the benefits/Revenues system and pitch bookings remained constant. Growth in this area will largely be delivered by increasing the number of transactions that can be completed online.

 

Income generated from community buildings – It was reported that officers were in the process of transferring bookings for the Sir Julien Cahn Pavilion to the Council’s other community buildings in preparation for the pavilion refurbishment which has led to some loss of bookings. The Communications and Customer Services Manager advised that marketing of all the Council’s community venues continues.

 

Councillor Edyvean commented on the decline in community facility usage and asked if this was a result of the Covid pandemic and users not returning. He also commented on the refurbishment of the Sir Julien Cahn Pavilion and asked what could be done to promote this facility and attract new users once the work is completed. In addition, the Chairman asked whether the decline in community facility usage was typical of the rest of the county. The Communications and Customer Services Manager advised that there had been a national shift in user behaviour and habits and also a generational change, with opportunities to reach out to new audiences. With regards to the Sir Julien Cahn Pavilion the Communications and Customer Services Manager expressed that there were no real concerns and that once the refurbishment is completed the facility offer will be greatly improved including greener energy and enhanced IT technology which will provide greater opportunities for promoting the facility.

 

Councillor Williams expressed the need for improvements to the Council’s community facilities and asked a specific question in relation to Alford Road playing fields and whether the issues around drainage and flooding had affected pitch bookings here. The Communications and Customer Services Manager advised that there is increased capacity at Gresham to compensate for the loss of bookings at Alford Road, adding that the grass pitches were being used less during wetter months and users are seeking to use all weather pitches as a preference to grass.

 

Councillor Plant asked a specific question relating to Rushcliffe Oaks not hitting its target of cremations and whether Wilford Hill crematorium was still the preferred choice for residents. The Communications and Customer Services Manager explained that Wilford Hill has decades of experience to its advantage, however the team at Rushcliffe Oaks were working hard on building relationships with funeral directors and looking at different options and opportunities to raise their profile.

 

Councillor Plant commented on the Council’s aspirations to improve and build on the tourism economy, expressing that good signage would provide greater opportunities for the Borough’s parks, churches, leisure centres and other places of interest. The Director – Finance and Corporate Services advised that officers were developing a Tourism Strategy to progress this line of work.

 

The Chairman commented on Councillor e-learning training which she stated had been raised and discussed at the last Member Development Group and expressed her preference for face-to-face training, particularly around mandatory topics such as, planning, licensing and GDPR. In addition, the Chairman suggested that the learning process for Councillors be scrutinised. The Director – Finance and Corporate Services advised that the current training programme for Councillors runs from 2021-25 and that it would be appropriate to revisit the process at some point later in the year. It was noted that Member Development Group would be the appropriate committee to approve the training for sign off by a meeting of Full Council. The Director – Finance and Corporate Services added that third party training by external trainers can be costly and is not necessarily well attended and that a balanced mix of face-to-face and e-learning is appropriate when also taking into account resource implications.

 

Councillor Plant asked a specific question around sustainable growth and the Ratcliffe on Soar power station site and whether there was any movement on what was being developed at the site. The Director – Finance and Corporate Services advised that a periodical update report is expected to be presented at the Cabinet meeting in May.

 

It was RESOLVED that the Corporate Overview Group scrutinised:

 

a)    The expected revenue budget efficiency for the year of £2.164m and the proposals to earmark this for cost pressures provided at paragraph 4.5 and Table 2

 

b)    The projected capital budget efficiencies of £4.440m including the reprofiling of provisions totalling £0.556m (paragraph 4.8 and Table 3)

 

c)     The overspend of £46.3k on special expenses (paragraph 4.6)

 

d)    The exceptions on performance to judge whether further information is required