Issue - meetings

Revenue Management Report - Quarter 1

Meeting: 21/09/2023 - Cabinet (Item 48)

48 Revenue Management Report - Quarter 1 pdf icon PDF 190 KB

To consider and decide on the recommendations as set out in the associated report.

 

Additional documents:

Decision:

RESOLVED –

 

1. That the Quarter 1 net expenditure on services year to date was £2,666,000, £1,098,000 less than budget be noted.

 

2. That by year end the Council anticipates net expenditure of £15,837,000 on services and that this forecast is £1,001,000 under budget be noted. 

 

3. That by year end the Council anticipates receiving an increase in funding of £1,248,000, due to additional investment interest and that overall, this means an improvement to budget of £2,249,000 be noted.  Further, that the Council will transfer £1,832,000 of this to earmarked reserves and £417,000 will reduce the budget deficit that was to be met from reserves be noted. 

 

 

REASON FOR DECISION: To show the actual expenditure on services compared to the revised budget for the period ended 30 June 2023, and the forecast outturn position, highlighting significant variances from the revised annual budget.

 

Minutes:

Lee Colyer, Director of Finance, Policy and Development presented the report set out in the agenda.

 

Discussion and questions from Members included the following:

 

-       The increases in interest rates, the reduction in staff  and the increase in car parking income had already been factored into future years. 

-       However by 2027/28, the Council’s major contracts would be due for renewal (Waste Management, Grounds Maintenance and Leisure Centres). Current intelligence suggested that the cost to renew these contracts would be significantly higher as the market was very different now. 

-       To cover the expected increase in cost, an additional £2.5m had been factored in for the year 2027/28.

 

RESOLVED –

 

1. That the Quarter 1 net expenditure on services year to date was £2,666,000, £1,098,000 less than budget be noted.

 

2. That by year end the Council anticipates net expenditure of £15,837,000 on services and that this forecast is £1,001,000 under budget be noted. 

 

3. That by year end the Council anticipates receiving an increase in funding of £1,248,000, due to additional investment interest and that overall, this means an improvement to budget of £2,249,000 be noted.  Further, that the Council will transfer £1,832,000 of this to earmarked reserves and £417,000 will reduce the budget deficit that was to be met from reserves be noted. 

 

 

REASON FOR DECISION: To show the actual expenditure on services compared to the revised budget for the period ended 30 June 2023, and the forecast outturn position, highlighting significant variances from the revised annual budget.

 


Meeting: 05/09/2023 - Finance and Governance Cabinet Advisory Board (Item 32)

32 Revenue Management Report - Quarter 1 pdf icon PDF 190 KB

To consider and provide a recommendation to Cabinet on the proposals set out in the attached report.

Additional documents:

Minutes:

Jane Fineman, Head of Finance, Procurement and Parking introduced the report set out in the agenda.

 

Discussion and questions from Members included the following:

 

-       Details of what the income from fines for PR2 could be used for was set out in legislation.

-       The current contract between TWBC and KCC ended in March 2024, details of the total amount of income received would be known at that time.

-       It would be for Members to decide what projects they would like the income to be used for, subject to compliance with legislation.

-       Improvements to the bus gate would be an appropriate use of the funding.

-       PR2 fines totalled £500k at the end of the 1st quarter.  As of 5 September 2023, fines totalled £1,020,000 (gross).

-       The Council had incurred significant costs implementing the PR2 scheme.  Costs included, 0.72p postage for every item posted, the recruitment of additional labour resources with four people working on this full time and the installation of CCTV cameras. 

-       When enforcement started in PR2 there were between 900 and 1,000 vehicles going through the enforcement area per day.  Latest figures were between 100 and 150 vehicles per day. 

-       The income from the fines was a legacy as it took time for each penalty to be processed, including those who appealed. 

-       There had been some success with staff recruitment during quarter 2.  At the end of quarter 2, the forecasts would be reviewed. 

-       Staffing issues affected the Capital programme across the whole of the Council, but particularly in the property and estates department as they supported a number of the projects. 

-       The HR Strategy was in draft form and was currently with the Chief Executive.  However, it should be noted, it was a high level strategy and would not include details of specific posts.

-       The number of appeals on PR2 were higher than the Council would normally receive for PCN’s.  The percentage of those who had to pay the higher level of fines (and not the £35 within the 14 days discount period) was not known.

-       At quarter 1, the budget deficit for 2023/24 was forecast at £526k.

-       The Medium Term Financial Strategy showed a budget forecast gap for 2023/24 of £889k, but with a savings plan attached, a further £300-£400k of potential savings could be netted off this figure. 

-       At the next meeting, the Committee would receive a Budget Update report which would include an updated savings plan that reflected the decisions made by Cabinet over the intervening months. 

-       If the Council continued to identify further savings, the trajectory was heading towards the Council having a balanced budget for next year without the need to use reserves. 

-       If all the savings plan items were delivered, the projected deficit for 2024/25 would be just over £400k.

-       The decision to implement any key decision, including car parking charges, was a matter for Cabinet. 

-       The Council’s expenditure was increasing by inflation  ...  view the full minutes text for item 32