Agenda item

Financial Monitoring Quarter 2 Report

To consider the report of the Cabinet Member for Performance and Resources concerning year-end forecasts and progress made against agreed savings targets for the 2nd quarter ended 30th September 2016.

Decision:

RESOLVED:

1. The savings achieved in year to date total £366k with a further £363k in progress.

2. The forecast year end position is currently for a reduction to the Council’s General Fund balance of £132k, an improvement of £125k since Quarter 1.

3. The deficit position includes a proposed transfer to the Business Rates Reserve of £100k

4. The actual and expected levels of income for the Council shown at Appendix 3.

5. The details of specific budgetary issues identified by officers and the actions being taken to address those issues

6. The current level of Capital expenditure as shown on Appendix 2.

Minutes:

The Chair agreed to revise the order of the agenda so a progress update could be provided ahead of budget proposals for the forthcoming financial year.

Cabinet considered the report Cabinet Member for Performance and Resources (Councillor Norman) which outlined year-end forecasts and progress made against agreed savings targets for the 2nd quarter ended 30th September 2016.

Councillor Norman highlighted key areas of the report noting that the Council was in a better position than at the end of quarter 1, thanking officers within the finance team for their hard work and efforts. He acknowledged that the Culture and Leisure and Environment portfolio continued to present challenges but welcomed the additional projects that were currently underway within the Environment portfolio which were expected to generate income.

Councillor Noakes (Cabinet Member for Culture and Leisure) expressed her frustration over the expected £228k overspend within her portfolio commenting that further action would be required to combat this. She reported that that the Museums service, which continued to face significant challenges, had recently undergone a review and that the final report, due in early 2017 would include recommendations on the future of the service.

Referring to the expected overspends within the Guildhall and Tourist Information Centre (TIC) services, Councillor Noakes reported that both service leads had been unable to dedicate as much time to their service areas, having been involved in the Together Gloucester project over the previous three months and this had led to a subsequent impact on performance. She expected an improvement in the financial position of the Guildhall, following the successful implementation of the Top Ticks system.

Councillor Watkins expressed disappointment that the transfer of the Shopmobility service to the voluntary and community sector had failed to materialise and that the service continued to remain in house. She reported that modest savings as a result of efficiencies had been made and that the future of the service would be determined as part of the wider transformation programme of the organisation. She concluded by reporting that the Council were looking into new and innovative ways of partnership working with the voluntary and community sector, with a further detailed report coming forward to Cabinet and Overview and Scrutiny Committee next year.

Councillor James commented that the market service continued to present challenges within his portfolio, though analysis of recent trends had demonstrated an increase in occupancy rates. He reported that the regeneration and economy portfolio continued to be bolstered by income resulting from strong parking enforcement and savings from senior management vacancies.