Issue - meetings

To consider a report by the Head of Resources.

noted the provisional outturn and spending variations for the Revenue and Capital Budgets for 2013/14; authorised the transfer of a contribution of £0.9 m to the Special Reserve and £1.5 m to a “Capital Investment” Earmarked Reserve; authorised the Head of Resources to adjust these contributions if the actual outturn varies by more than 2.5% and to commence a Zero Based Budgeting Review Programme across the Council, to be funded from the Special Reserve and to update the Cabinet on a quarterly basis.

The Cabinet received a report by the Head of Resources (a copy of which is appended in the Minute Book) outlining the provisional revenue and capital outturn for 2013/14 together with the deliberations of the Overview and Scrutiny Panel (Economic Well-Being) thereon.

Executive Councillors were pleased to note that as a result of under spending the Council had been successful in saving an additional £2.2 million, £0.9 million of which would be placed in the Special Reserve with the remaining £1.5 million being used to establish a “Capital Investment” Earmarked Reserve.

Having concurred with the Panel that a programme of Zero Based Budgeting would improve the management of the budget, the Cabinet

RESOLVED

(a)  that the report be received and the provisional outturn and spending variations for the Revenue and Capital Budgets for 2013/14 be noted;

(b)  that a contribution of £0.9 million be transferred to the Special Reserve;

(c)  that a “Capital Investment” Earmarked Reserve be established and a contribution of £1.5 million be transferred to this;

(d)  that in the event that the actual outturn figure varies by more than 2.5% of that noted in (a) above, the Head of Resources, after consultation with the Executive Councillor for Resources and the Managing Director, be authorised to adjust the revenue contributions to the Special and Capital Investment Reserves accordingly; and

(e)  that the Head of Resources be authorised to commence a Zero Based Budgeting Review Programme across the Council, to be funded from the Special Reserve and to update the Cabinet on a quarterly basis.

To consider a report by the Head of Resources.

(Councillor J A Gray, Executive Councillor for Resources, was in attendance for this item).

The Panel considered a report by the Head of Resources (a copy of which is appended in the Minute Book) outlining the provisional revenue and capital outturn for 2013/14. Councillor J A Gray explained that the improved position with regard to capital expenditure was primarily due to slippage that would be utilised in future years’ capital programmes. In terms of the revenue outturn, the Council had ended the year in a better position than anticipated and Councillor Gray thanked officers for their hard work in this regard. Going forward, Members were advised that it was intended to undertake a Zero Based Budgeting review programme across the Council in preparation for the formulation of the draft Budget in December 2014. In recognition of the expected service transformation programme that the Council was embarking upon and the potential for investing in revenue generating capital projects, it was also proposed to transfer  funds to earmarked reserves for these purposes. In concluding his remarks, Councillor Gray reiterated the need for the Facing the Future exercise to continue to generate savings and he outlined the Cabinet’s longer term aspiration for the Council to become self-financing.

Having noted that the provisional revenue outturn revealed that expenditure was £2.2m below the level expected and the likely reasons for this, the Panel welcomed the presentation of financial information in the new format. In terms of the variations in revenue spending from the 2013/14 Budget and the provisional revenue outturn by service area, Members sought clarification on a number of matters including the earmarked reserve for CIL receipts and the contributions to additional grants under Financial Services. With reference to a forthcoming item to be discussed by the Development Management Panel, comment was also made with on the need to ensure that the arrangements for entering into Section 106 Agreements were robust. This matter was referred to the Environmental Well-Being Panel. Members then suggested that Councillor R B Howe should be invited to attend a future meeting to discuss the income profile for One Leisure, St Ives.

In terms of the forthcoming base budget review, the Panel discussed the methodology for this programme and noted that updates on progress would be received on a regular basis. Members acknowledged that this would be a resource intensive process.

RESOLVED

that the Cabinet be recommended to endorse the recommendations set out in the report now submitted.