Agenda item

To consider the report of the Interim Chief Finance Officer (copy enclosed).

The Committee considered the report of the Interim Chief Finance Officer providing financial performance information for the period 1 April – 31 December 2023.  The report provided an update on a number of areas including the following:

·                Gross Service Income and Expenditure;

·                Top Expenditure Areas and Variance Analysis;

·                Top Income Areas and Variance Analysis;

·                Salary Monitoring as at end of quarter 3;

·                Inflationary impact;

·                Impact on the General Fund Balance;

·                Capital Monitoring (Appendix 1)

It was noted that service related net expenditure budgets remained on track to underspend this financial year, with additional income offsetting cost pressures. The 2023 / 24 Budget allowed for higher inflationary costs, however budgets, in particular employee costs, remained under pressure. Investment income was expected to over-perform against the budget due to higher interest rates, increasing the Council’s overall projected underspend. Collection rates were out-performing current year expectations; however, the enduring cost-of-living crisis could yet create pressure on council tax and business rates income.

During the debate that ensued and in response to questions from Members, Officers advised that the Councill’s Reserve position, including the Transformation Reserve was reported annually to the Council through the outturn report. The Interim Chief Finance Officer advised that she could provide an update on the Council’s Reserves outside of the meeting.

Further details were provided regarding the role for which drawdown from the Transformation Reserve was requested. It was noted that the post was for a fixed two-year period and was required to help the Council deliver future savings. Members were advised that the Council did not have the resource or expertise required to take this work forward. Investing in this post would bring efficiencies which would then deliver ongoing savings. In response to questions, the Interim Chief Finance Officer advised she would monitor the related savings and provide an update to Members outside of the meeting. In response to a suggestion to defer the decision regarding this drawdown from Resources, Members were advised that delaying until June (the next scheduled meeting of this Committee) would make it difficult to retain continuity within the service.

Councillor S White proposed that consideration of the requested drawdown on Reserves be deferred as more background information was required along with a detailed report as to why this item was not in the budget as a growth item. The Chairperson highlighted that Officers did not want to defer the decision on this business, but he was happy for a full business case to be brought back to the Committee.

In response to questions raised, the Commercial Manager provided the following updates:

·                Following the successful award of a £100k government grant, a changing places facility was being installed at Blackwater Leisure Centre, this installation would include a hoist and support all persons using the Leisure Centre. The Committee were advised that work had started but it was expected that 50% would continue into the new financial year.

·                The Air Handling Unit moved air around the Leisure Centre and the Council was in a position to now fund this but up to date quotes were required before work could start. It was noted this spend was within budget.

·                The Director of Service Delivery confirmed that the new Section 106 Officer had started and would be following a programme of work which included the stakeskate[1] park at Riverside Park, Burnham-on-Crouch. Officers were aware of the funding deadlines but would provide an update on the detail in respect of the skate park project outside of the meeting.

The Chairperson moved the recommendations. Councillor A S Fluker proposed that further information be brought back to the Committee in respect of the invest to save business case for the fixed-term IT Specialist role. This amendment was duly agreed. The Committee then agreed the proposals, as amended.

RESOLVED

(i)             That the forecasted 2023 / 24 revenue financial position as at 31 December as detailed in the report be reviewed;

(ii)            that the forecasted 2023 / 24 capital financial position as at 31 December as summarised at Appendix 1 to the reportbe reviewed;

(iii)          that a drawdown of £98k from the Transformation Reserve for a two-year extension of a fixed-term IT specialist role as set out at paragraph 5.2 of the report be agreed

(iv)          that further detail be brought back to the Committee in respect of the invest to save business case for the fixed-term IT Specialist role.