Cabinet Member for Finance and Performance

Cabinet considered the report of the Head of Finance with the above Cabinet Member who advised that, following a request from the Scrutiny Committee,  the report structure had been revised to set out the reasons for the underspend more clearly.  He highlighted the underspend on services of over £1.9milion, the 40% increase in the collection of business rates which was one of the highest increases in Kent, and thanked the Head of Finance, Officers and Cabinet Members.

The Cabinet Member for Finance and Performance proposed an additional recommendation to be included:

(11)     In the event of any representation being made on the Outturn report by the Scrutiny Committee, the Head of Finance, in consultation with the Cabinet Member for Finance and Performance, be given delegated authority to respond to those representations.

Members welcomed the improved format of the report.

In response to a question from a Member on why, on page 169 of the report, there was an increase in funding when there had been an underspend the previous financial year, the Cabinet Member for Finance and Performance advised that building maintenance was variable year on year.  The Head of Finance added that the team were requesting to roll over every penny and the figure was to balance the underspend shown on page 159 of the report.  The same Member asked why the request of £10,00 towards the fencing required at Bell Road Cemetery, Sittingbourne on page 176 could not be increased and completed properly, as it was a small amount, and the Cabinet Member for Finance and Performance agreed to consider this and respond at a later date.

A Member referred to the £60k rollover request for Footpath ZR5 in Faversham on page 177 of the report, and asked why, when the estimated cost of the work was between £80k – £135k, SBCwere contributing half the cost when the responsibility of Public Rights of Way was Kent County Council (KCC)?  A discussion ensued and the following points were raised:

·        why was the £60k required now for a project not yet approved?;

·        clarification on what was required as KCC had asked to be indemnified by SBC for any compensation due to residents;

·        was the footpath in front of Waterside Close in poor condition because of the poor retaining wall, or was it sinking? and

·        due to processes required, the funding may not be required until 2017/18 so why commit the money now?

The Cabinet Member for Regeneration advised that, whilst KCC were the Planning Authority for the scheme, KCC and SBC were jointly, legally responsible.  He advised that SBC were asked to make a contribution prior to approval, there may or may not be compensation due, there would be a detailed examination of the footpath by a KCC Engineer, and the funding was a requirement in the future, so provision for this needed to be included in the budget now.

The Chief Executive added that it was not the purpose of the report to agree further costs or indemnification, as those decisions if needed would be taken through separate processes.

A Member highlighted the importance of a spend to save initiative, referring to the rollover requests in parking on page 175 of the report.

Resolved:

1.         That the gross revenue underspend on services of £1,958.000 be noted.

2.         That the £138,250 rollover of specific and other grants, and a rollover of £48,000 due to an accounting adjustment re play areas be noted.

3.         That the approved rollover of £170,000 to meet the 2016/17 base budge as set out in paragraph 1.6 be noted.

4.         That the net revenue underspend on services of £1,601,750 be noted.

5.         That the revenue rollover of specific and other grants of £138,250 as set out in Table 3 Appendix I be approved.

6.         That the net revenue over-recovery on business rates of £1,744.380 be noted.

7.         That the further revenue service rollovers of £754,510 from 2015/16, and the setting up of new reserves as set out in Table 4 Appendix I for approval be approved.

8.         That the revenue service bids of £443,990 as set out in Table 5 Appendix I be approved.

9.         That the allocation of uncommitted underspends to reserve funds be delegated to the Head of Finance.

10.      That the capital rollovers of £473,160 as detailed in Table 10 Appendix I be approved.

11.      That in the event of any representation being made on the Outturn report by the Scrutiny Committee, the Head of Finance, in consultation with the Cabinet Member for Finance and Performance, be given delegated authority to respond to those representations.