Agenda item

To advise the Cabinet of the mid–year financial position in 2009-10. 

Consideration was given to the Council’s mid year financial position in 2009 – 2010.  The report focussed on areas of high financial risk to the Council and included updates on treasury management, the capital programme, in-year collection rates for council tax and business rates, and an update on the reserves strategy.

RESOLVED

For the reasons set out in the report: -

1.  That the following points be noted: -

• the pressures on the Council’s revenue budget in the second quarter of 2009-10, detailed in Section 11 and Appendix 1 of the report and the proposed remedial action;
• the positions on Adults Transformation Funding and Learning Disability Pooled Budget detailed in Section 11.2 of the report;  
• the Treasury Management update detailed in Section 12 of the report;
• the Council’s in-year collection rates for Council Tax and Business Rates, detailed in Section 13 of the report;
• progress to date on delivering the 2009-10 capital programme, detailed in Section 14 and Appendix 3 of the report;
• Delegated Decisions approved by Directors, as shown in Appendix 2b of the report;

·        Delegated Decisions approved by Directors in consultation with the relevant Portfolio Holder and the Portfolio Holder for Resources for Supplementary Capital Estimates (SCE) and virement requests over £100,000 and up to and including £500,000 as shown in Appendix 2a of the report;

• the updated Reserves position detailed in Section 15 and Appendix 4 of the report.

2.  That approval be given to the following: -

• a virement devolving £900,000 from the Dedicated Schools Grant uncommitted funds of £1.528m, allocating £85,000 to DSG centrally supported activity, retaining £543,000 within a central contingency, as set out in Section 11.2 of the report;
• a Supplementary Revenue Estimate of £84,500 for preparatory works on the Tatton Park Biennial funded by external contributions as set out in Section 11.3 of the report;
• a Supplementary Revenue Estimate of £170,000 for a Housing Stock Condition Survey funded from the LPSA Target 11 Reward Grant, as set out in Section 11.3 of the report;     
• the revised in-year capital budget for 2009-10 as set out in Section 14 of the report, including;
• Supplementary Capital Estimates (SCE)/Virements over £500,000 and up to and including £1.0m, as shown in Appendix 2a of the report;
• Reductions in approved budgets, as shown in Appendix 2c of the report.

3.       That Council be recommended to approve the following SCE and Virement requests over £1.0m, those which  require funding from later years and those funded from reserves, as detailed in Appendix 2a of the report:-

• Christ the King Catholic & C of E Primary School               £3,039,000
• Stapely Broad Lane Primary School                                     £906,000
• Offley Primary School                                                              £845,000
• Energy Efficiency – Invest to Save                                           £75,000    

4.  That Council be recommended to approve the use of General Reserves to fund the following items as detailed in Section 15 of the report:- 

(a) £75,000 in 2009-10 for energy efficiency measures to reduce Carbon Emissions. 

(b) Round 2 Voluntary Redundancy costs of up to £5m, together with the additional future payment of actuarial costs.

5.  That Council be recommended to approve the use of General Reserves to create the following new earmarked reserves as detailed in Section 15 of the report: -

(a) Invest-to-Save Projects (£2m)  

(b) Enabling Local Working  (£625,000)