Agenda item

To receive performance management information on the Council’s Corporate Plan for 2015/16 and updates on current projects, including the Provisional Outturn for 2015/16.

i.  Considered and commented on progress made against Key Activities and Corporate Indicators in the Corporate Plan and current projects, as summarised in Appendix A and detailed in Appendices B and C of the Officer’s report;

ii.  Considered and commented on the Council’s 2015/16 provisional outturn.

iii.  Approves the:

§  deletion of 21 Earmarked Reserves as detailed in paragraph 4.14.1 of the Officer’s report;

§  formation of 9 Earmarked Reserves as detailed in paragraph 4.14.2 of the Officer’s report;

§  transfer of £0.244m from the Budget Surplus Reserve to the Collection Fund Reserve, and

§  transfer of £0.561m from the Budget Surplus Reserve to finance the Democratic and Organisational Governance and Efficiency initiatives.

The Cabinet considered a report by the Corporate Team Manager and Head of Resources (a copy of which is appended in the Minute Book) and commented on progress against the Key Activities and Corporate Indicators listed in the Council’s Corporate Plan for 2015/16 for the period 1 January to 31 March 2016.  The report also incorporated progress on the current projects being undertaken at the Council; details of the 2015/16 provisional outturn for revenue and capital spend; and an update on the Commercial Investment Strategy including details of the investments to date and the level of returns these were expected to generate.

The Cabinet were informed regarding the year end outturn revenue position for 2015/16 of the net revenue spend of £17.1m resulting in a saving against budget of £2.0m when compared to the updated Budget.  The main reasons for the £2.0m variance were detailed within paragraph 4.4 of the Officer’s report.

The Councils final 2015/16 net capital programme was £9.3m, following slippage of £0.3m as a result of a loan to Luminus for financial support of the Langley Court development not commencing.

In December 2015 the Cabinet approved that the minimum level of the General Fund to be maintained was 15% of net expenditure.  The 2015/16 opening General Fund balance was £9.3m.  As a consequence of the service saving noted in the report; the transfers to and from Earmarked Reserves in respect of the Collection Fund and external grant; maintaining the general fund at 15% of net expenditure; and a transfer to the Commercial Investment Reserve, the revised forecast General Fund balance was £2.7m.

During the year there had been a significant review of the Earmarked Reserves held by the Council. At the start of the financial year there were 38 separate Earmarked Reserves, as detailed within Appendix D of the Officer’s report, totalling £15.7m.

As per the requirements of the Reserves Strategy, the Cabinet were requested to approve the deletion of 21 Earmarked Reserves as listed within paragraph 4.14.1 of the Officer’s report as well as the formation of the reserves listed in paragraph 4.14.2 of the Officer’s report.

Regarding the £0.805m held in the Budget Surplus Reserve at the end of the financial year, the Cabinet were requested to approve the transfer of £0.244m to ‘Collection Fund Reserve’ to finance the Department for Communities and Local Government’s contribution as a consequence of the District Council being above the Non-Domestic Rates baseline funding in 2015/16; and £0.561m to finance the Democratic and Organisational Governance and Efficiency initiatives noted in Section 7 of Appendix D of the Officer’s report.

The Cabinet were informed that as of 31 March 2016, the Council had invested £3.9m in Commercial Investment Strategy related assets, compiling investment of £2.5m in Churches, Charities and Local Authorities Mutual Investments Trust Property Fund and the purchase of 2 Stonehill, Stukely Meadows, Huntingdon for £1.4m.

The Cabinet considered and discussed each of the performance indicators with a ‘red’ status, those being where progress was behind schedule.

It was noted that the working days lost per full-time employee through sickness had increased to 11.7 days. The Cabinet were informed that to recognise the staff that had not had a day’s absence in 2015/16 it had been agreed that they would receive an additional day’s annual leave to use in 2016/17.

In considering the comments from the Overview and Scrutiny Panel (Performance and Customers) Members were referred to the following response that had been circulated to the Cabinet prior to the meeting regarding a question seeking clarification as to the underspend in the Community Grants budget:

‘Community Grants 2015/16 Variation £39,000

•  A variance of approximately £14,000 because, under the terms of the Service Level Agreement the Council had with one organisation, their failure to meet set targets resulted in a lower amount being paid to them.

•  A variance of approximately £6,000 was generated on the Community Chest Grants because:

o  £5,000 was brought forward from 2014/15 but was not taken up when the projects were abandoned; and

o  £1,000 of the 2015/16 allocation was not taken up when the project was abandoned.

•  A variance of approximately £18,000 because the Zero Based Budgeting adjustment put forward to reduce the 2015/16 grants budget was concluded after the determination of the 2015/16 budget setting. Consequently this amount remained in the budget, even though it was not required and was not committed.  The 2016/17 budget has been reduced to the level required for the on-going commitments the Council has made'.

Whereupon it was

RESOLVED

That the Cabinet,

  i.  considered and commented on progress made against Key Activities and Corporate Indicators in the Corporate Plan and current projects, as summarised in Appendix A and detailed in Appendices B and C of the Officer’s report;

  ii.  considered and commented on the Council’s 2015/16 provisional outturn;

  iii.  approves the:

§  deletion of 21 Earmarked Reserves as detailed in paragraph 4.14.1 of the Officer’s report;

§  formation of 9 Earmarked Reserves as detailed in paragraph 4.14.2 of the Officer’s report;

§  transfer of £0.244m from the Budget Surplus Reserve to the Collection Fund Reserve, and

§  transfer of £0.561m from the Budget Surplus Reserve to finance the Democratic and Organisational Governance and Efficiency initiatives.