The Committee is asked to consider the Financial Management Report – April – December 2016.

The Cabinet Member for Finance and Performance and the Chief Finance Officer are attending for this item.

The Chairman welcomed the Cabinet Member for Finance and Performance and the Chief Finance Officer to the meeting for this item.

The Cabinet Member introduced the report which set out the revenue and capital projected outturn activity for 2016/17, as at the end of December 2016.  He reported that the net revenue underspend was £716,000, including £785,000 additional income.  He considered the Council was in a good position, and explained that the variation year-on-year on the planning fees income and the increase in parking fees, had resulted in increased revenue, and that the cost of bed and breakfast for the homeless added pressure on the budget.

The Chief Finance Officer reminded Members that the report had been considered by Cabinet on 15 March 2017, and that the report submitted to this meeting was for comment and noting.

The Chairman invited Members to consider the report focussing on particular areas, as below.

Members made comments and asked questions.

Table 1:  Service Movements

Suggest that more awareness was given to grants, and it be made easier/clearer on how residents applied for them; acknowledged that it was difficult to forecast the Planning income, but over the past 4/5 years, the Council had consistently under-budgeted the Planning income, suggest that it be reviewed for the current year, and so budget for next year; clarification sought on the figures set out on page 4 under the secondment income, as it appeared that it was costing the Council money when a staff member was being ‘costed out’; public conveniences showed net contract savings, but many were in an appalling state, and suggest any spare money should be spent on them; were there any indications that the Park & Ride scheme raised any income?; surprised there was no working budget for the legal fees for the Sittingbourne Master Plan/Town Centre Regeneration;  how was the £16,000 income being spent to improve highways?; and were there any other costs during the Park & Ride scheme, i.e. congestion/time/pollution/cost-related benefits?

The Cabinet Member agreed with the comments made on the grant schemes.  The Chief Finance Officer explained that the Planning budget could not be amended as it was agreed by Full Council in February 2017.  He stated that a report would be submitted on a regular basis, but the budget could not be re-set, and it was reviewed at the quarterly budget meeting.  He explained that the secondment figure was a variance of £20,000 underspend, and as such was an income to the Council.  The Cabinet Member for Safer Families and Communities advised that the contract saving on the public conveniences was a saving on the negotiated services that had been delivered, which was a different matter to the ‘state’ of the toilets.  He further advised that during the Park & Ride scheme, there had been no dip in town centre parking in December 2016, so income was generated.  The Chief Finance Officer advised that information on page 15 of the report showed that there was £30,000 for Sittingbourne Town Centre legal fees, funded from in-year underspend.

Members agreed that an interim report on public conveniences be submitted to the Scrutiny Committee.

The Chief Finance Officer agreed to provide further information on the £16,000 budget for general highway improvements.

The Cabinet Member for Safer Families and Communities advised that a document would be produced on the overall benefits/costs of the Park & Ride scheme and he would forward this to the Committee.

Table 3: Main Variations by Service

Surprised to see the comment ‘additional funding not required’ for the Alexander Centre in Faversham, as additional improvement work was needed there; happy that funds had been ring-fenced on complex needs; request a report on troubled families and assisting families with complex needs, and the value achieved by the project; clarification sought on the Local Engagement Forum (LEF) Grants, and what this was for?; concerned with the lack of promotion of apprenticeships, this needed to be developed further in Swale, and the Cabinet Member and Economic Development Team be advised of this; rural areas, as well as urban should be considered for apprenticeships; and suggest £5,000 underspend on WW1 remembrance and commemoration be rolled-over.

The Chief Finance Officer explained that the £10,000 identified for the Alexander Centre was in the base budget.  He advised that Quinton Hall had recently been demolished.  The Cabinet Member confirmed that WW1 funds were rolled-over.

The Chief Finance Officer agreed to provide further information on the CCTV contract, especially with regard to the £3,000 loss of income.

The Cabinet Member for Safer Families and Communities agreed to provide a report on troubled families and assisting families with complex needs, including the value achieved by the project.

The Chief Finance Officer agreed to provide details in relation to the LEF Grants.

The Chief Finance Officer agreed to forward the apprenticeship comments to Senior Management and the Cabinet Member for Regeneration.

Capital Expenditure

The Chief Finance Officer agreed to forward further information on the bridge deck replacement at Barton’s Point Coastal Park, Minster.

Table 7

There was concern that there was underspend on the replacement of Air Quality Stations, as would have though the scheme would have been extended.

The Cabinet Member for Safer Families and Communities advised that the underspend for the Air Quality Stations was because one of the monitoring stations had not been working.

Debtors

A Member congratulated the team responsible for debt recovery, and the Chief Finance Officer said that he would forward this comment to the team.

The Chairman thanked the Cabinet Member for Finance and Performance and the Chief Finance Officer for attending for this item.

Resolved:

(1)      That the report and the comments made above be noted.