Agenda item

To enable the Committee to undertake Scrutiny of the Corporate Budget and Financial Forecast Monitoring 2019/20 First Quarter, with particular attention to the detail as identified in the Work Programme as item 8 of this agenda.

The Committee had before it a report of the Deputy Chief Executive – Financial Performance Report – in Year Performance against the budget at end of First Quarter 2019/20 and Long Term Financial Forecast Update, which provided an overview of the Council’s financial positions against the budget as at the end of June 2019 and to present an updated forecast on an on-going basis as part of developing the budget for 2020/21 and beyond.

The report invited the Committee to consider the in-year financial position of the Council as at the end of June 2019 and determine whether it had any comments or recommendations it wished to make or put forward to the relevant portfolio holder or Cabinet; and that it considered the updated long-term financial forecast update and determines whether it has any comment or recommendations it wished to make to Cabinet as part of the financial strategy consultation process.

The Committee was made aware that on 13 September 2019 Cabinet had considered a Financial Performance Report, which was attached as Appendix A to the report to this Committee. It was reported that Cabinet had resolved:

(1)    In respect of the financial performance against the budget at the end of June 2019:

(a)    The position be noted; and

(b)    The proposed in-year adjustments to the budget, as set out in Appendix H to the report, be approved, with the additional requirement that the fund of £1.134million set aside for investment in the Council’s property assets be spent in such a way as to reduce future cost pressures and to contribute to the Council’s commitment to carbon reduction.

(2)    In respect of the Updated Long Term Financial Forecast, the updated forecast be agreed and that the Resources an d Services Overview and Scrutiny Committee be consulted on the latest position.

In response to individual questions of Members, the Head of Finance, Revenues & Benefits Services reported:

·      The first three years of the 10 year financial plan had seen significant savings be achieved.  The reason why the increase in the annual target for savings was rising from £300K to £450K over the remaining 7 years of that plan was a reflection on cost pressures that had arisen following the commencement of the 10 year plan. 

·      The payments to the Council in respect of the former M&S store in Clacton Town Centre amounted to approximately £200K per year.

·      If a major emergency were to occur and the Council needed to respond it would seek to recover costs incurred under the Bellwin scheme.  This scheme provided for government emergency financial assistance to reimburse local authorities for costs incurred on, or in connection with, their immediate actions to safeguard life and property or to prevent suffering or severe inconvenience as a result of a disaster or emergency in their area.

·      The funds held by the Council for Disability Facilities Grants were released for those in private sector housing in response to an assessment by the Essex County Council Occupational Therapist of the facilities needing to be installed. 

·      The Capital Scheme for Clacton Multi Storey Car Park was to reflect the fact that the expected life of the current structure had now been fulfilled.  While there was no reason to consider there was an imminent need to replace the structure it was appropriate to include the full sub to replace it and to continue to inspect/monitor the structure.

·      The Capital Scheme for Bath House Meadow Security Measures was a scheme to deter unauthorised use of that meadow. 

·      While the complete figures as to financial support of £2.25m for the North Essex Garden Communities company (NEGC Ltd) and the approved use of £905K of that sum were not in the report submitted to Cabinet and this Committee, he intended to adjust the reports to report these details in the future.

During the discussion of this item there were suggestions about potential income generation ideas (involving the building and selling of Beach Huts), the extent to which the reserves of the Council were appropriate and otherwise could be made to work for the Council while the projects they were there to fund were not requiring expenditure, the extent to which savings had been made that then resulted in a need for spending authorised by way of ‘one-offs’.

After some deliberation it was RESOLVED that:

(1)       The Committee notes the contents of the report;

(2)       Requests that, for its meeting on 28 November, it should have submitted to it a complete list of reserves and provisions; and

(3)       Amends the Committee’s Work Programme to identify that it intends to look at income streams for the Council to contribute towards the savings target of £450K per year in the Revenue Budget.