Issue - items at meetings - Targeted Budget Management (TBM) 2008/09 Month 9

Report of the Interim Director of Finance & Resources (copy attached)

(1)       That the Cabinet note the much improved forecast outturn position for the General Fund, which is now forecasting an underspend of £2.133 million.

(2)       That the Cabinet note the forecast outturns for the Section 75 Partnerships and Housing Revenue Account (HRA) for 2008/09 as at month 9.

(3)       That the Cabinet agree that the net forecast underspend of £1.647 million be added to general reserves to contribute to the Medium Term Financial Strategy and balance out investment income pressures over the next 3 years due to current market conditions.

(4)       That an earmarked reserve be set up for the Housing Revenue Account Estate Development Budget and that balances held for the Estate Development Budget at the 1 April 2008, in the HRA reserves are transferred to this earmarked reserve.

5)         That the Cabinet note the forecast outturn position, £0.048 million underspend, on the capital budgets as at month 9.

(6)       That the Cabinet approve the following changes to the capital programme:

                        Budget re-profiles     (Appendix 4)

                        Budget variations      (Appendix 5)

                        Slippage                    (Appendix 6)

168.1  The Cabinet considered a report of the Interim Director of Finance & Resources that forecast the outturn position on the revenue and capital budgets as at the end of December 2008 (month 9) (for copy see minute book).

168.2  Councillor Brown thanked CYPT officers in successfully managing a difficult financial situation.

168.3  Councillor Mitchell asked for an explanation of the underspend on the West Area Youth and Support Budget. Councillor Brown suggested that this was due to fewer children being taken into care in the area and would write to Councillor Mitchell to confirm.

168.4  Councillor Mitchell noted that repairs to the Madeira lift might take longer than had initially been estimated.

168.5  RESOLVED - That, having considered the information and the reasons set out in the report, the Cabinet accepted the following recommendations:

(1)       That the Cabinet note the much improved forecast outturn position for the General Fund, which is now forecasting an underspend of £2.133 million.

(2)       That the Cabinet note the forecast outturns for the Section 75 Partnerships and Housing Revenue Account (HRA) for 2008/09 as at month 9.

(3)       That the Cabinet agree that the net forecast underspend of £1.647 million be added to general reserves to contribute to the Medium Term Financial Strategy and balance out investment income pressures over the next 3 years due to current market conditions.

(4)       That an earmarked reserve be set up for the Housing Revenue Account Estate Development Budget and that balances held for the Estate Development Budget at the 1 April 2008, in the HRA reserves are transferred to this earmarked reserve.

5)         That the Cabinet note the forecast outturn position, £0.048 million underspend, on the capital budgets as at month 9.

(6)       That the Cabinet approve the following changes to the capital programme:

                        Budget re-profiles     (Appendix 4)

                        Budget variations      (Appendix 5)

                        Slippage                    (Appendix 6)