Issue - items at meetings - Targeted Budget Management (TBM) 2012/13 Month 5

Report of the Director of Finance (copy attached).

(1)               That the forecast outturn position for the General Fund, which was an underspend of £1.453m be noted;

(2)               That the forecast outturn for the Housing Revenue Account (HRA), which was an underspend of £0.720m be noted;

(3)               That the forecast outturn position on the Capital Programme be noted;

(4)               That the following changes to the Capital Programme as detailed below be approved:

(i)           The budget re-profiling and budget variations as set out in Appendix 2 to the report;

(ii)         The carry forward of slippage into the 2013/14 Capital Programme, to meet on-going commitments on these schemes as set out in Appendix 2 to the report;

(iii)       The new schemes as set out in Appendix 3 to the report.

(5)               That the Acting Director of Finance be granted delegated authority, following consultation with the Chair of the Policy & Resources Committee, to approve the purchase and installation of new cremators and additional mercury abatement plant up to a value of £1.806m procured directly through an OJEU compliant route; and

(6)               That the carbon budgets update as set out in Appendix 5 to the report be noted.

54.1         The Acting Director of Finance introduced the report which detailed the forecast outturn position as at Month 5 on the council’s revenue and capital budgets for the financial year 2012/13.  He noted that since the last report improvements had been made in some of the critical budget areas and an underspend of £1.45m was now projected for the year end.  He stated that the value for money exercise was performing well but noted that pressure remained on the overall budget.  With regard to the capital budget the report detailed some re-profiling for which approval was sought.

54.2         Councillor Littman welcomed the report and stated that he wished to thank Members and Officers involved in the budget process and hoped that further improvements would be achieved for the final year end position.

54.3         Councillor A. Norman thanked the Acting Director of Finance for the report and stated that she had a number of questions regarding the information provided in the report.  She queried whether the savings referred to as a one-off for Children’s Services in the underspend of £1.45m should have been permanent and thereby reduced the previous budget savings target.  She also asked for clarity in regard to the overspend for transport for the Social Work Team and the shortfall of £700k  in parking revenue and queried what evidence showed that people were using buses rather than cars.  She stated that the overspend for communications was disappointing and noted that the advertising and sponsorship contract had yet to be awarded.

54.4         The Acting Director of Finance stated that the performance in regard to the Children’s Services budget would be factored into future budget considerations, and could not have been accounted for at the time of budget setting as only known factors could be included.  The social care budget had been affected by staff transport costs following relocation of the team.  He was aware that the advertising and sponsorship contract had gone out to tender and a report should be coming forward in due course.

54.5         Councillor A. Norman queried whether there was information available in regard to the welcome sign in Patcham/Withdean and whether the savings previously identified for HR were likely to be achieved.  She also referred to page 59 and asked for confirmation of the Information Commissioners recommendations in relation to the risk provision and why a further £600k was required for the Woodvale Cremators.  She asked if further information could be provided in writing in regard to the proposed £1.2m identified for bus improvements.

54.6         Councillor Shanks stated that the social work team had moved the Hub at Whitehawk and this had had an impact on transport costs, but she noted that placement costs were coming down.

54.7         The Acting Director for HR stated that the implementation and integration of the Pier management system was hoped to achieve the required savings.

54.8         The Acting Director of Finance stated that the Information Commissioner was looking at the connectivity and security protocols for the council and their recommendations were awaited.  In regard to the Woodvale Cremators, additional works had been identified and having taken into account the experience of other authorities, the higher specification was seen as value for money.

54.9         Councillor Mitchell noted the report and welcomed the achievements made to date in regard to the Children’s Services budget.  She was concerned about the parking revenue and noted that at the last Transport Committee meeting assurance had been given that there would be a review of charges across the city, including the half hour level.  She also queried what the capital spend for Shoreham Harbour referred to, and what action was being taken to address the overspend in communications and what had led to the overspend on the HRA in respect of tv aerials.

54.10    The Strategic Director; Place stated that in relation to Shoreham Harbour, some minor transport works had been identified.

54.11    The Acting Director of Finance stated that there was an overspend of £400k on the HRA budget because of the need to upgrade and cover additional security costs due to the recent increase in the value of scrap metal.

54.12    The Chair stated that he could confirm that there would be a parking review and following that review action taken to address matters if it was needed.

54.13    Councillor Hamilton referred to page 38 of the report and asked how much was left in the reserve that had been set aside for One Planet Living.  He also referred to page 43 and queried whether the Home to School Transport provision could be looked at corporately, as it may then be possible to utilise the underspend to meet other service provision.

54.14    The Acting Director of Finance stated that he would need to check the details and would write to the councillor to confirm the remaining balance for the funding set aside for One Planet Living.

54.15    Councillor Shanks stated that officers were looking at the Home to School Transport provision and how this could be improved in terms of the overall school transport provision.

54.16    Councillor G. Theobald stated that the level of parking charges were having a detrimental affect on local businesses and needed to be reviewed as soon as possible.  He noted that one local business had had their cheque returned because the advertising and sponsorship contract had not been resolved and this was an example of failing to take advantage of support that was available to the council and meant that the sign in Patcham had not been put up.  He also asked if there was any information available in regard to the impact of the Police & Crime Commissioners appointment in November.

54.17    The Chair stated that there was a need to confirm the ownership of the land in question where the sign would be placed before any advertising and sponsorship could be taken advantage of.

54.18    The Acting Chief Executive stated that community safety funding streams would be determined by the new Police & Crime Commissioners and any changes would not be known until they were in office.

54.19    Councillor Peltzer Dunn referred to page 52 of the report and queried the position in regard to the Dome payment and what had been achieved and also asked for clarification in regard to the changes that were taking place at Hove Town Hall to accommodate the Police.

54.20    The Acting Chief Executive stated that the council had a long-term commitment to fund the Dome with RPI increases and in the budget setting exercise for 2011/12, officers tried to negotiate a change to that agreement which had not been possible, and therefore an overspend had resulted.  She noted that officers were still in discussion with the Dome and hopeful that a resolution could be found for future years.

54.21    The Head of Property & Design confirmed that as part of the Workstyles changes, some refurbishment was taking place at Hove Town Hall and this also included provision of accommodation for the Police, however the changes did not affect the current allocation of rooms to Members.

54.22    Councillor West welcomed the report and the underspend that he felt had been achieved through good management and wished to thank the officers concerned for their hard work.  He stated that further work was required and investment in carbon budgeting to enable further savings to be achieved and funding for other areas.

54.23    Councillor Wakefield referred to page 60 of the report and welcomed the underspend for premises repairs and the introduction of pro-active works to improve the housing stock rather than having to react to matters as they arose.

54.24    The Chair noted the comments and put the recommendations to the vote.

54.25    RESOLVED:

(1)         That the forecast outturn position for the General Fund, which was an underspend of £1.453m be noted;

(2)         That the forecast outturn for the Housing Revenue Account (HRA), which was an underspend of £0.720m be noted;

(3)         That the forecast outturn position on the Capital Programme be noted;

(4)         That the following changes to the Capital Programme as detailed below be approved:

(i)           The budget re-profiling and budget variations as set out in Appendix 2 to the report;

(ii)         The carry forward of slippage into the 2013/14 Capital Programme, to meet on-going commitments on these schemes as set out in Appendix 2 to the report;

(iii)       The new schemes as set out in Appendix 3 to the report.

(5)         That the Acting Director of Finance be granted delegated authority, following consultation with the Chair of the Policy & Resources Committee, to approve the purchase and installation of new cremators and additional mercury abatement plant up to a value of £1.806m procured directly through an OJEU compliant route; and

(6)         That the carbon budgets update as set out in Appendix 5 to the report be noted.