Issue - meetings

Received a report from the Corporate Director of Finance and Commercial Services providing an update on the Council’s revenue and capital position for the 2009/10 financial year as projected at 31 December 2009.

The current forecast for revenue expenditure across the Council shows in-year pressures amounting to £2.8m, for which current recovery plans have identified expected savings of £2.1m.  In addition there are net potential corporate risks of a further £0.7m, which represents an improved position to that reported for the period up to 31 October.  In this latter respect, noted proposals to off-set some of the corporate revenue pressures through the release of other specific reserves which are no longer required, as well as other proposals in relation to re-profiling of capital schemes and virements between revenue budgets in order to better reflect the current position.  The Corporate Director commented that she is optimistic that a balanced budget position will be achieved by the year end.

Agreed, as a matter of good financial practice, to:

  (i)  The transfer of £1.2m from specific and ear-marked reserves to the general balance as detailed in paragraph 3.1.6 of the report;

  (ii)  The re-profiling of certain capital schemes as detailed in section 5 of the report and Appendix D;

  (iii)  The revenue and capital virements as detailed in section 6 of the report;

  (iv)  Note the current projected position for 31 March 2010 of the Council’s revenue and capital budget as detailed in the report and Appendices A and C;

  (v)  Note the position for the Housing Revenue Account as detailed in the report and Appendix B;

  (vi)  Note that in light of the current potential overspend, departments are continuing work to identify and deliver recovery plans to eliminate overspends;

  (vii)  Note that the Corporate Director of Finance and Commercial Services has imposed mechanisms to reduce in-year expenditure;

  (viii)  Note that potential further actions may be required; and

  (ix)  Note the third quarter Financial Health Indicators as detailed in Appendix E to the report.