To consider and provide a recommendation to Cabinet on the proposals set out in the attached Report.
Jane Fineman, Head of Finance, Procurement and Parking introduced the report that showed actual expenditure on services compared to the revised budget for the period ending 31 December 2019.
Discussion and responses to Members questions included the following matters:
- Actual revenue expenditure to 31 December 2019 was £9.3m. This was £77,000 less than was forecast. However the forecast outturn for the year was £25,000 over budget.
- The main movements were a forecast reduction in staff costs of £343,000, a net reduction in the Assembly Hall income of £150,000 and a further reduction in car parking income from the RVP, Meadow Road and Crescent Road car parks of £200,000. Staff cost savings of £80,000, £80,000 of compensation from the Union House car park and £70,000 increase in penalty charge notices offset some of these costs.
- It was anticipated that by year end £25,000 of savings would be found to bring it back to budget.
- The other main movement in expenditure was the unwinding of the Calverley Square project.
- The Council’s total reserves were £17.2m. This compared with the £19.2m at the end of Quarter 2.
- The report requested approval to issue fines for a breach in householder duty. The proposed charge would be £400, the maximum allowed under current legislation. In addition the approval of debts to be written off.
- In accounting terms, because the Calverley Square project was no longer going ahead, the value was shown as zero.
- The Pension Reserve was created from the savings made through paying Pensions to Kent CC in advance. TWBC overpaid by approximately £2.1m and agreed that it would be paid back to the Council before the reserve was closed, to be then transferred back into the general fund for use by the Council. The money had now been used rather than transferred back into the general fund.
- Clarification was requested on the £750,000 gross missed forecast on Assembly Hall revenue. It was agreed that further detail would be sent by email following the meeting.
- The estimated final expenditure figure for the Calverley Square project was confirmed to be as close as possible to the final figure. There were only very minor expenses still to be included. Another report would be submitted at the end of the financial year which would give a further update.
RESOLVED – That the recommendations to Cabinet set out in the report be supported.