Issue - meetings

8.10 pm

Report of Strategic Director – Customer Service and Resources and Chief Accountant

Summary

This report summarises the Council’s Revenue and Capital performance for the first 6 months of the financial year 08/09 and projections for the full 08/09 period. These are measured by the budget monitoring function and reported via the Performance Management Framework (PMF) informing the 09/10 budget process currently underway

Recommendations

The Executive is recommended:

1)     To note the revenue & capital position at Sept 08 detailed in Appendix 1 and 2.

2)      To note the projected revenue position for 08/09 detailed in Appendix 3 and the actions taken to date to reduce the projected overspend.

3)      To agree that £3,605,367 of capital schemes listed in Appendix 4a approved as part of the 08/09 budget but profiled for expenditure in 2009/10 are bought forward for utilisation in 08/09 as per the revised profiles of the accommodation review and sports centre modernisation project.

4)      To agree that £607,100 of capital schemes listed in Appendix 4b approved as part of the 08/09 budget are to be delayed and agree that they are carried forward for utilisation in 09/10. This delay will generate additional investment income in 2008/09.

5)      To agree that £467,833 of schemes listed in Appendix 4c as no longer required and approved as part of the 08/09 budget can be deleted from the capital programme and approve supplementary estimates totalling £135,328 detailed in Appendix 4d for inclusion into the 08/09 capital programme comprising of:

·         £20,000 Data Encryption Software

·        £25,000 Service Desk Software

·        £35,328 Iclipse Software Licences

·        £27,000 Iclipse System Upgrade

·        £28,000 Banbury Visitor Management Plan

The net decrease of £332,505 on cashflow projections will generate additional investment income.

6)      Subject to agreement of points 4-7 inclusive note the projected capital out-turn position for 2008/09 detailed in Appendix 5.

7)     To consider and recommend whether any of the actions proposed below to further contain expenditure during this period of economic downturn should be further explored by Officers in the Q3 projection.

• Delete or defer capital schemes that have yet to start as at 31^st October 2008 and detailed in Appendix 6
• To cut any discretionary expenditure planned in the second half of the year
• To consider a review of reserves and the need to make provision for further economic issues as part of the Q3 projection.

Agreed, with the clarification that no further actions be taken in accordance with Recommendation 7.

The Strategic Director – customer Service and Resources and Chief Accountant submitted a report that summarised the Council’s Revenue and Capital performance for the first 6 months of the financial year 08/09 and projections for the full 08/09 period.

Resolved

1)     That the revenue & capital position at Sept 08 be noted.

2)      That the projected revenue position for 08/09 and the actions taken to date to reduce the projected overspend be noted.

3)      That it be agreed that £3,605,367 of capital schemes as part of the 08/09 budget but profiled for expenditure in 2009/10 are bought forward for utilisation in 08/09 as per the revised profiles of the accommodation review and sports centre modernisation project.

4)      That it be agreed that £607,100 of capital schemes approved as part of the 08/09 budget are to be delayed and agree that they are carried forward for utilisation in 09/10. This delay will generate additional investment income in 2008/09.

5)      That it be agreed that £467,833 of schemes listed as no longer required and approved as part of the 08/09 budget be deleted from the capital programme and that supplementary estimates totalling £135,328 for inclusion into the 08/09 capital programme comprising of:

·         £20,000 Data Encryption Software

·        £25,000 Service Desk Software

·        £35,328 Iclipse Software Licences

·        £27,000 Iclipse System Upgrade

·        £28,000 Banbury Visitor Management Plan

be agreed and it be noted that the net decrease of £332,505 on cashflow projections will generate additional investment income.

6)      That the projected capital out-turn position for 2008/09 be agreed.

7)     That no further actions be taken to further contain expenditure during this period of economic downturn at this time.

Reasons - In line with good practice budget monitoring is undertaken on a monthly basis within the Council. The revenue and capital position is reported monthly to the Corporate Management Team and formally to the Executive on a quarterly basis. This is the Q2 report for financial year 2008/09.