Agenda item

The report provides a review against the 2015/16 budget for the General Fund and the Housing Revenue Account forecast to 31 March 2016 based on the latest information available.  The report also updates Members on the key Financial Strategy issues going forward.

Recommendation

It is recommended that the Executive notes the report and

1.            recommends that the current Council Tax Support Scheme remains unchanged for 2016/17, see paragraph 13;

2.            recommends that approval be given to the Employee Records Civica project at a cost of £25,000, to be funded from the Capital Urgent Schemes budget, see paragraph 26;

3.            recommends that Council approves the rescheduling of £50,000 of the Godalming Cricket club grant budget into 2016/17, and Badshot Lea Football Club of £50,000, see paragraph 18;

4.            recommends that approval be given to the rescheduling of £8,000 for the Aerial photography refresh into 2016/17, see paragraph 19;

5.            recommends that Council approve the transfer of £55,000 from the Cranleigh Leisure Centre AHU budget to the Cranleigh Leisure Centre CHP unit (£23,000 – see paragraph 24) and LED Central Office Lighting Replacement (£32,000 - see paragraph 25);

6.            recommends that Council approves the rescheduling of £230,000 of HRA Capital budget into 2016/17 as detailed in paragraph 31;

7.            recommends that Council approves the rescheduling of £405,000 of the 2015/16 budget for Stock Improvement, see paragraph 32;

8.            recommends that Council approves the rescheduling of £7,920,000 of the 2015/16 budget for New Affordable Homes, see paragraphs 33 and 36; and

9.            accepts the mid-year budget projection and acknowledges that no immediate action is required for 2015/16 at this stage.

The Executive has noted the report and agreed that

1.            the current Council Tax Support Scheme remains unchanged for 2016/17, see paragraph 13 of the report;

2.            approval be given to the Employee Records Civica project at a cost of £25,000, to be funded from the Capital Urgent Schemes budget, see paragraph 26 of the report;

3.         approval be given to the rescheduling of £8,000 for the Aerial photography refresh into 2016/17, see paragraph 19; and

4.         the mid-year budget projection be accepted and noted that no immediate action is required for 2015/16 at this stage.

[CORPORATE OVERVIEW AND SCRUTINY COMMITTEE]

The Executive has also agreed to RECOMMEND to the COUNCIL that

5.         approval be given to the rescheduling of £50,000 of the Godalming Cricket club grant budget into 2016/17, and Badshot Lea Football Club of £50,000, see paragraph 18;

6.         the transfer of £55,000 from the Cranleigh Leisure Centre AHU budget to the Cranleigh Leisure Centre CHP unit (£23,000 – see paragraph 24) and LED Central Office Lighting Replacement (£32,000 - see paragraph 25) be approved;

7.         approval be given to the rescheduling of £230,000 of HRA Capital budget into 2016/17 as detailed in paragraph 31;

8.         the rescheduling of £405,000 of the 2015/16 budget for Stock Improvement be approved, see paragraph 32;

9.         the rescheduling of £7,920,000 of the 2015/16 budget for New Affordable Homes be approved, see paragraphs 33 and 36; and

10.       approval be given to a virement from the urgent capital schemes budget and savings in the general fund capital programme to undertake roof repair works at Farnham Leisure Centre at an estimated costs of £106,000.

[This item is recommended to the Council for approval and is not subject to the call-in procedure]

[Reason: to monitor and manage the Council’s budgets to ensure financial control over service delivery]

87.1    Throughout 2015/16 all budgets are monitored on a monthly basis and performance against budget reported monthly after taking account of:

·        Spend to date, including commitments

·        Last year’s outturn

·        Variations to the budget based on forecast outturn that includes the effect of management action taken where required

·        Consultation with managers and budget holders on service performance

·        Virements identified where possible from existing budgets to cover budget pressures and budget approvals actioned as required

·        Service managers review and sign off their budget forecasts and explanations

87.2    Financial position reporting will also focus on performance against financial targets such as income, establishment and Star Chamber savings.  Financial risk is always inherent in service delivery and service managers will be assisted in identification, evaluation and mitigation of significant risks and these will be reported throughout budget management as necessary.

87.3    The General fund Capital Programme is on track and monitored closely each quarter.  The table below summarises the current position:

87.4    The rescheduled amount includes £1million for the Memorial Hall project reported in June, as it is clear that the majority of contractor works will fall in the 2016/17 financial year.  There are two separate budgets for agreed grants to Godalming Cricket Club of £50,000 and Badshot Lea Football Club of £50,000.  It is requested that this funding be rescheduled into 2016/17 as the clubs involved are not expected to be claiming these grants this financial year as they are awaiting other external funding and new leases. 

87.5    In the Environmental area there is a £55,000 budget for a new Air Handing Unit (AHU) for Cranleigh Leisure Centre.  The AHU was repaired, so replacement is now not necessary or effective.  It is therefore requested that this budget is transferred to the projects in paragraphs 87.6 and 87.7 below, both projects were approved in the original budget.

87.6    The first of the two projects is for an additional £23,000 for a new Combined Heat & Power (CHP) unit at Cranleigh Leisure Centre.  There is already a budget of £88,000 but further budget is required as the original estimate from the energy audit undertaken last year was not representative of the actual cost.

87.7    The second project is for an additional £32,000 for LED lighting at the Central Offices to bring forward the project, thereby enabling the savings on energy usage at the offices to be achieved sooner.  The delivery of this scheme will be subject to receiving greater clarity about the Council’s intention to move from the Burys as its administrative base

87.8    The existing roof to the Farnham Leisure Centre is the original roof and the covering was overlaid 15 years ago to extend its life. Recently there have been several areas where water ingress has occurred causing damage to the internal fabric of the building and the situation has worsened in the last few weeks. The Council commissioned a condition survey of the roof and the recommended option is to overlay the existing roof with a new roof as this can be carried out safely and without affecting the running of the Centre, therefore minimising disruption to customers and avoiding closure costs. It is imperative that this work is carried out as soon as possible.

87.9    With regard to HRA core capital, the previous budget monitoring report included proposals to October Council for adjustments to the core capital programme.  Following a review of the budget provision in light of the progressing workit is requested to reschedule £230,000 into 2016/17.  Of this, £200,000 relates to the windows contract which is in the process of being procured but will not be in place long enough in this financial year to allow for a substantial replacement programme.  The other £30,000 is for the garage budget which is unlikely to be spent this financial year.

87.10  For stock remodelling, The total capital programme budget originally approved in February 2015 was £1,280,010 and a further £55,000 was carried forward from 2014/15.  During the year members have approved rescheduling to 2016/17 of £390,000 giving a current budget in 2015/16 of £945,000.  A comprehensive exercise to assess each capital scheme for stock remodelling and new homes has been undertaken to take account of build cost inflation and contingencies.  Also a reassessment of delivery timescales has been made.  This has resulted in a number of proposed changes to capital budgets which are shown in the table below.

87.11  The programme has been reviewed and updated to reflect progress on schemes to date and likely progress during the rest of the year.  As a result work on the Ockford Ridge remodelling scheme, to the value of £720,000, has been rescheduled.  However, two additional schemes have been added to the programme.  This results in a net position of rescheduled expenditure for 2015/16 totalling £405,000.

87.12  For new build, the total capital programme budget originally approved in February 2015 was £11,457,000 and a further £4,859,000 was carried forward from 2014/15.  The New Build Programme has also undergone a mid-year review and the approved budget has been rescheduled to more realistically reflect current and expected progress.  It also reflects budget rescheduled from 2014/15 for land and asset purchase.  Other main changes relate to the redevelopment of Wey Court, schemes at Middlefield and Nursery Hill withsome £7.9million proposed to be rescheduled into 2016/17 and 2017/18.

87.13  The Executive noted the report and

RESOLVED  that

1.            the current Council Tax Support Scheme remains unchanged for 2016/17;

2.            approval be given to the Employee Records Civica project at a cost of £25,000, to be funded from the Capital Urgent Schemes budget;

3.         approval be given to the rescheduling of £8,000 for the Aerial photography refresh into 2016/17; and

4.         the mid-year budget projection be accepted and noted that no immediate action is required for 2015/16 at this stage.

87.14  The Executive now

RECOMMENDS that

33.       approval be given to the rescheduling of £50,000 of the Godalming Cricket club grant budget into 2016/17, and Badshot Lea Football Club of £50,000;

34.       the transfer of £55,000 from the Cranleigh Leisure Centre AHU budget to the Cranleigh Leisure Centre CHP unit (£23,000) and LED Central Office Lighting Replacement (£32,000) be approved;

35.       approval be given to the rescheduling of £230,000 of HRA Capital budget into 2016/17;

36.       the rescheduling of £405,000 of the 2015/16 budget for Stock Improvement be approved;

37.       the rescheduling of £7,920,000 of the 2015/16 budget for New Affordable Homes be approved; and

38.       approval be given to a virement from the urgent capital schemes budget and savings in the general fund capital programme to undertake roof repair works at Farnham Leisure Centre at an estimated costs of £106,000.

[Reason: to monitor and manage the Council’s budgets to ensure financial control over service delivery]