Issue - meetings

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.

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.

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.

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  ...  view the full minutes text for item 49

To receive the report of the Cabinet Member for Performance and Resources which sets out financial monitoring report details including budget variances, year-end forecasts, and progress made against agreed savings targets for the 2nd quarter ended 30th September 2015.

The Chair welcomed Councillor David Norman (Cabinet Member for Performance and Resources), Anne Brinkhoff (Corporate Director) and Andrew Cummings (Management Accountant) to the meeting.

Councillor David Norman shared that the forecasts within the report were best estimates based on the current financial status and that the financial performance was stronger than at the end of Quarter 1.

Councillor David Norman stated that the Cabinet were aware that the Culture and Leisure Portfolio presented some challenges and expressed disappointment that targets were not being met. He stated that the Cabinet Member for Culture and Leisure was taking steps to improve the financial performance of the portfolio.

Councillor David Norman concluded his update stating that the Council continued to enjoy a wide range of financial options and opened the topic to the Committee for questions.

Councillor Wilson stated it was an encouraging report with a large breakdown of figures, but that it did not show if there were any overall concerns in specific areas, such as an effect on performance due to financial changes and the resultant changed workloads for Officers. 

Councillor Wilson also raised the matter of the discrepancy between the forecast income and the actual income for the Tourist Information Centre (TIC) and asked if it should be of concern. Councillor David Norman confirmed that the Council should not be complacent regarding any missed target. Andrew Cummings clarified the figures, stating that a significant amount of TIC revenue was due to ticket sales but a large amount of costs were also due to ticket sales, so as sales rose, costs would rise and vice versa. Due to lower sales resulting in lower costs, the TIC was expected to be down by about £20,000 in revenue, rather than £109,000 in the income appendix.

In response to a question from Councillor Wilson regarding the difference between the forecast and actual spend on Housing projects, Andrew Cummings explained it may have been due to lower take up of Disabled Facilities Grants but he would obtain the Councillor further information.

Councillor Hilton expressed disappointment that, with only a few months of the year left, there was no time to address the overspend within the Culture and Leisure Portfolio. Councillor David Norman agreed that it was disappointing that targets had not been met, but that the matter was being addressed in plans for the next financial year. Andrew Cummings stated that the predicted overspend was due to the saving target agreed by Council, and the revenue performance for this portfolio was set to exceed this time last year. Councillor David Norman stated that Cabinet was in the process of drafting the budget for 2017/18 and were aware that the Council was facing financial challenges and would be realistic with their aims. As part of meeting those challenges, Cabinet had received recommendations from the Together Gloucester team on how to make savings.  He stated that 2017/18 will be a financial challenge for the Council, but all portfolios would be scrutinised by Cabinet, and that he would  ...  view the full minutes text for item 51