Issue - items at meetings - Targeted Budget Management (TBM) 2014/15 Month 5

Report of the Executive Director for Finance & Resources (copy attached).

1.            That the Committee note the forecast outturn position for the General Fund, which is an overspend of £5.219m. This consists of £5.019m on council controlled budgets and £0.200m on the council’s share of the NHS managed Section 75 services.

2.            That the Committee note that there is a further £1.890m of as yet unallocated risk provision that could be used to mitigate against this overspend.

3.            That the Committee note the forecast outturn for the Housing Revenue Account (HRA), which is an underspend of £0.247m.

4.            That the Committee note the forecast outturn position for the Dedicated Schools Grant which is an underspend of £0.548m.

5.            That the Committee note the forecast outturn position on the capital programme.

6.            That the Committee approve the capital programme variations and reprofiles in Appendix 3 and new capital schemes in Appendix 4 (excluding the Dorothy Stringer all weather pitch).

7.            That the Committee delegate authority to the Executive Director of Finance & Resources to approve the Dorothy Stringer all weather pitch capital scheme, subject to seeking further assurance on the detail of the business case.

61.1    The Committee considered a report of the Executive Director for Finance & Resources in relation to Targeted Budget Management (TBM) 2014/15 (Month 5). TBM was a key component of the Council’s overall performance monitoring and control framework; the report set out the forecast outturn position (Month 5) on the Council’s revenue and capital budget for the financial year 2013/14. Month 5 showed only a small improvement to the position overall (from Month 2) as the organisation approached the mid-point of the year; there continued to be significant pressures and forecast risks to manage across the General Fund Revenue Budget.

61.2    Councillor Sykes thanked Officers for the report, and noted his concern in relation to the budget position as the budget preparation from 2015/16 was beginning. Year on year demand for services in the city was increasing, and there were ongoing problems in City Clean in relation to the cost of industrial action.

61.3    Councillor A. Norman thanked Officers for the report; she stated that the positon within Adult Services summed up the projected overspend which was largely due to non-achievement of savings – this work was dependent on the commissioning review, and evidence of the delay was apparent and could have a detrimental impact of the most vulnerable residents. The trade union release time was currently being reviewed, and the additional funds from Central Government for pothole repairs were welcomed – as well as monies for retrofitting technology. The Executive Director for Finance & Resources clarified that there was not sufficient budget to fund the current central release time for staff; the organisation was reviewing to better understand this area and would make proposals for changes.

61.4    In response to Councillor A. Norman’s queries about the catering contract at Hove Museum the Assistant Chief Executive explained that the museum was in-between contracts, and following the recent tendering process the new contract was due to be awarded.

61.5    Councillor G. Theobald noted the points already made in relation to City Clean and the release time for union staff; he stated he welcomed the review commitment made by the Executive Director for Finance & Resources. The Executive Director for Environment, Development & Housing stated whilst there was all intention of bringing the budget in on target the current dispute was challenging; however, a comprehensive service redesign was planned to help in future financial years.

61.6    The Chair noted that the largest proportion of the overspend related to social care, and it was hoped the Better Care Fund would go some way towards addressing this.

61.7    The Chair then put the recommendations to the vote:

61.8RESOLVED:

1)        That the Committee note the forecast outturn position for the General Fund, which is an overspend of £5.219m. This consists of £5.019m on council controlled budgets and £0.200m on the council’s share of the NHS managed Section 75 services.

2)        That the Committee note that there is a further £1.890m of as yet unallocated risk provision that could be used to mitigate against this overspend.

3)        That the Committee note the forecast outturn for the Housing Revenue Account (HRA), which is an underspend of £0.247m.

4)        That the Committee note the forecast outturn position for the Dedicated Schools Grant which is an underspend of £0.548m.

5)        That the Committee note the forecast outturn position on the capital programme.

6)        That the Committee approve the capital programme variations and reprofiles in Appendix 3 and new capital schemes in Appendix 4 (excluding the Dorothy Stringer all weather pitch).

7)        That the Committee delegate authority to the Executive Director of Finance & Resources to approve the Dorothy Stringer all weather pitch capital scheme, subject to seeking further assurance on the detail of the business case.