Agenda item

Financial Monitoring Report 2018/19 - Quarter 2

To consider the report of the Director (NE) (reference 18/266) attached

 

Minutes:

The Cabinet considered a report by the Director (NE) (Reference 18/266) in respect of the Council’s financial performance at the end of Quarter 2 which included an addendum to accept capital grants and contributions in respect of the Church Street Flood Alleviation scheme.  Members were advised that a revenue budget surplus of £515k was expected to be achieved this year of which £150k had been allocated as the Council’s contribution to the 2019 Tour de Yorkshire cycle race.  In respect of the Council’s capital budgets and the ongoing development of Dean Road Depot, it was recommended that £43k from the capital receipt in relation to the Middle Deepdale development be allocated towards the relocation costs of Tourism Services staff from High Eastfield Farm to Dean Road Depot.  At the permission of the Chairman, Councillor Tony Randerson addressed the Cabinet expressing his opposition to the capital receipt arising from the Middle Deepdale Development being used in this way, maintaining that the monies should be allocated to his Eastfield ward.  The Director, Mr Edwards justified this recommendation in terms of the regeneration of Eastfield and the wider area and that to enable the development of the Construction Business Centre on the High Eastfield Farm site, it made sense to use the capital receipt to help fund the relocation costs of Tourism Services staff from this site to Dean Road Depot.

RESOLVED that the Cabinet:

i)             Note the report and in particular that:

 

·         Despite the setting of an extremely challenging budget a year end surplus of £515k is currently expected to be achieved;

·         As approved by Council (18/195), the 2019 Tour De Yorkshire cycle event (£150k) will be funded from the 2018/19 revenue budget surplus, reducing the uncommitted balance to £365k.  In the unlikely event that this causes an in year overspend then this cost would require funding from the Council’s General Fund Balance. 

·         The surplus is primarily driven by one-off savings specifically in relation to business rates refunds, one off grants and delays in legislative changes to pension auto-enrolment.

·         The majority of income targets are being achieved;

·         The majority of savings identified as part of the 2018/19 budget setting process are being achieved but there are a small number of areas that still require addressing (including some perpetual under achieved budgets).  These will continue to be monitored.

·         The capital programme continues to operate within the overall parameters set in terms of contingency levels;

 

ii)         Approve that any surplus generated this financial year is set aside for the capital strategy / one off priorities.

 

iii)       Approve acceptance of the following grants and contributions:

 

·         £30,000 from NYCC to help mitigate the impacts on tourism and commerce following a poor performance in rail services over the summer.

·         £41,170 from the Big Local Programme for the delivery of support worker services to the Barrowcliff Big Local Partnership.

·         £1,100,000 of funding from the LEP (subject to finalising a funding agreement) as a contribution towards the Church Street Flood Alleviation scheme.

·         £15,000 from North Yorkshire County Council (subject to finalising a funding agreement) as a contribution towards the Church Street Flood Alleviation scheme.

 

iv)       Note the acceptance of the funding allocation for the Robin Hoods Bay Sea Wall Scheme.

 

v)         Approve the allocation of £43,000 from the capital receipt owed in relation to the Middle Deepdale development as a contribution towards the relocation costs of Tourism Services staff from High Eastfield Farm to Dean Road Depot.

 

vi)       Approve allocation of £4,000 of Section 106 towards footpath network upgrades within Valley Park.

 

Reasons

To provide information relating to the Council’s financial performance for the 2018/19 year.

 

Supporting documents: