Issue - items at meetings - Targetted Budget Management Month 6

49.1    The Director of Finance introduced the report on Targeted Budget Management, month 6, that had been presented to 9 December Cabinet. This showed an improved forecast position compared with Month 4, with a projected overspend on total council-controlled budgets of just £319,000, which could be viewed almost a breakeven position in the scale of the overall budget.

49.2    It was pleasing that there had been some continued improvements on the corporate critical budgets. The action plans to deal with overspends had been shown to make a significant difference, reducing for example the Environment Directorate overspend  from £797,000 to £170,000 since the previous report/

49.3    Some significant overspends on Departmental budgets had been compensated for from savings on the Centrally Managed Budgets; for instance through contingencies put in place for pay awards that were not needed at this stage.

49.4    There had been no other major changes since Month 4. The TBM forecast for Month 9 would be crucial in the context of the overall budget-setting process.

49.5    Members heard answers to questions as follows:

a)         Regarding Energy efficiency savings (page 22 of the agenda); what has been the progress for example on automatic meter readers (AMRs) in public libraries?

 The Council anticipates making carbon and revenue savings and is exploring ways of keeping energy usage down and making savings in energy budgets to put back into energy efficiency in the next budget. Changes in prices of contracts and volumes of usage are complex. Further information would be provided on smart meters.

b)                 On the Collection Fund (agenda page 13); what is the effect of the contributory factors to the reduced Council Tax liability for 2010/2011?

The reduced liability is a significant factor for the Council’s finances but is outside the Council’s direct control. The Council Tax collection rate is on target for this year and it might be possible to improve slightly for next year.

c)                  In the Centrally Managed Budgets what is included in the ‘Other Corporate Items’ that show a 36.5% underspend?

Risk provision in the budget had been set aside centrally and was released to offset pressures elsewhere. These included for example £1.5million in risk provision for Learning Disabilities and £1.1 million for pay award compensation that was not needed.

49.6    RESOLVED; that the report be noted and additional information on AMRs be requested as minuted above at 49.5 (a).