To consider approval of recommendations in respect of the Capital Programme.
Resolved:- (1) That the following projects be supported for inclusion in the Approved Capital Programme 2016/17:-
· Area Assembly – Neighbourhood Investment - £140,000 (already approved ‘in principle’ by Council on 2nd March 2016).
· Swinton Civic Hall Refurbishment - £44,868
· Replacement of Damaged Waste Bins - £150,775
· Capitalisation of Cleansing Equipment - £40,000
· Capitalisation of GIS Transport Software - £25,000
(2) That the changes to budgets identified in Appendix 6 for projects which are already included in the Approved Capital Programme be approved.
Mover:- Councillor Alam Seconder:- Councillor Watson
Report of the Strategic Director of Finance and Customer Services
Cabinet Member: Councillor Alam
Commissioner: Commissioner Myers (in advisory role)
· Notes the current forecast overspend after management actions of £8.635m for 2016/17. (Paragraph 3.1)
· Endorses the need for additional management actions to be urgently developed, agreed and implemented and for these to be documented in future Cabinet Financial Monitoring Reports.
· Require that Directorate management actions to mitigate forecast overspends are clearly and comprehensively documented, including an evaluation of the likely financial impact of these actions (quality assured by Finance Business Partners), and a detailed implementation plan is produced which is regularly reviewed by each Directorate Leadership Team.
· Note the Recovery Plans included within this report that provide a summary of the current proposed management actions, and performance against those actions currently used to help mitigate the forecast overspend
· Recommend any additional actions which could be implemented to help manage down the current forecast overspend.
· Note and approve the recovery strategy for the forecast overspend on the Dedicated Schools Grant High Needs Block. (Paragraph 3.15)
· Note that this report should be considered in conjunction with the Medium Term Financial Strategy (MTFS) update report elsewhere on this agenda.
· Note and approve Appendix 3 which details the budget savings approved by the Council in March 2016 that are now to be delivered by other means.
· Notes the current forecast outturn position on the approved Capital Programme for 2016/17 and 2017-2021. (Sections 3.57 to 3.73 and Appendix 4)
· That the following projects be supported for inclusion in the Approved Capital Programme 2016/17.
o Area Assembly – Neighbourhood Investment - £140,000 (already approved ‘in principle’ by Council on 2nd March 2016).
o Swinton Civic Hall Refurbishment - £44,868
o Replacement of Damaged Waste Bins - £150,775
o Capitalisation of Cleansing Equipment - £40,000
o Capitalisation of GIS Transport Software - £25,000
· That Council be recommended to include the above schemes in the Approved Capital Programme.
· That Council be recommended to approve the changes to budgets identified in Appendix 6 for projects which are already included in the Approved Capital Programme.
Consideration was given to a report which set out the financial position at the end of September and was based on actual costs and income for the first six months of the financial year and forecast costs and income for the remaining six months of 2016/17.
The current position showed a forecasted revenue overspend of £8.635m after currently identified management actions totalling £3.781m. These management actions were further detailed within recovery plans included as Appendix 2 to this report, and would enable the Council to meet the current forecast outturn position. They were not, however, expected to further reduce the current forecast overspend, for this to happen additional management actions/recovery plans would need to be explored and developed to further reduce the projected overspend within Children & Young People’s Services and Adult Care & Housing; and additionally to further improve the balanced or forecast underspend position within the remaining Directorates.
This forecast overspend was set against a backdrop of the Council successfully delivering savings of £117m over the last five years and having to save a further £21m in 2016/17. The majority of the approved budget savings for 2016/17 were being achieved, the main exception being the £1 million saving from the review of staff terms and conditions of employment agreed by Full Council in March which would not now be delivered in the expected timescales in 2016/17. Further work was in train to bring forward options for consideration in due course as there is a further £1m to be achieved within 2017/18 (£2m full year effect).
The key pressures contributing to the current forecast overspend were:-
· The continuing service demand and agency staffing cost pressures for safeguarding vulnerable children across the Borough and the strengthening of Social Work and management capacity; and
· Demand pressures for Direct Payments and Managed Accounts, Residential and Domiciliary Care across all Adult client groups.
All Directorates continued to identify and implement additional management actions to further mitigate the forecast overspend and to tightly control spend until the end of March, 2017. A further report would be submitted to Cabinet in December updating on the progress made to address the specific pressures in the demand-led services and to accelerate the Council’s improvement activity in order to bring spending further in line with budget as soon as possible.
There were a number of investment proposals outlined with the MTFS update report (elsewhere on this agenda), which subject to their approval, would help to ensure that the current year forecast outturn position could be delivered. Due to the timing of their approval, and time taken to implement, they were expected to have a limited impact on improving the current in year position. Although they were not expected to reduce the current forecast overspend any further for 2016/17, they would enable significant savings to be achieved from 2017/18.
There was also a significant forecast overspend (£4.830m) on the Dedicated Schools Grant (DSG) High Needs Block. This was a forecast increase of £3.8m in a six month period. Whilst ... view the full minutes text for item 116