Agenda item

AGREED RECOMMENDATIONS

Reason for decision – as specified in the report.

Other options considered - none.

Conflicts of interest/dispensations granted – none.

Link to the report

RESOLVED:

2.1         That the forecast revenue outturn for the General Fund of an overall underspend of (-£0.634m) compared to a forecast underspend of (-£0.237m) in the previous month be noted. 

2.2         That management action is required over the course of the financial year to bring forecast overspends back to within agreed cash limited budgets where possible be noted.

2.3         That the breakdown of the forecast General Fund outturn by individual variance at Appendix 1 and by service area at Appendix 2 be noted.

2.4         That the schedule of additional budget risks that are not included in the current forecasts be noted.  That there is an ongoing financial assessment of these risks, which will be reported in future months, be noted.

2.5         That the allocation of up to £2.707m from the corporate contingency budget, as a permanent budget adjustment, to resolve the structural budget issues in the Environment and Regeneration budget be agreed.

2.6         That the latest position on the earmarked corporate transformation reserve be noted and a new allocation of £0.620 from the reserve to continue to progress the discovery phase of the Enterprise Resource Planning project be agreed.

2.7         That the HRA forecast is a net break-even position be noted.

2.8         That the latest capital position and key capital variances with forecast capital expenditure of £144.853m in 2019/20 against the existing 2019/20 capital budget of £148.412m be noted.

2.9         That it be noted that the capital budget increases since month 5 relating to earmarked grant funding are now profiled in the capital programme and that the following capital budget changes required to fully incorporate the current year expenditure profiles in the approved programme be agreed.

2.9.1   A £1.000m increase to the current year capital programme to
          incorporate the 49-59 Old St scheme in the capital programme
          (funded from capacity within the existing capital financing budget);

2.9.2     A capital virement from previously reported slippage in the Housing directorate (-£0.909m) to the Bunhill II scheme in the Environment and Regeneration directorate (+£0.833m) and the 49-59 Old Street scheme in the Resources directorate (+£0.076m) in order to reflect current year expenditure profiles (no impact on the overall resources available for the Housing capital programme);

2.9.3     An allocation of £4.088m from the Carbon Offset Fund (Section 106) to the Bunhill II scheme in the Environment and Regeneration directorate, subject to agreement by the Affordable Energy Board and the Borough Investment Panel;

2.9.4     A capital virement (net nil within the People directorate) from the forecast underspend on the school expansion schemes contingency budget (-£1.067m) to the Central Library scheme (+£1.067m);

2.9.5     A capital virement from the remaining forecast underspend in the People directorate (-£0.633) to the 49-59 Old Street scheme in the Resources directorate (+£0.633m).

2.10      That the overall increase in the capital programme, funded as set out above and from additional external income, is subject to agreement by Council on 5 December 2019 in a separate report be noted.

2.11      That the drawdown of £1.793m from the ‘capital reserve’ (an earmarked revenue reserve) for the forecast revenue costs of the 49-59 Old Street project be agreed

Reason for decision – to allow members to monitor the budget.

Other options considered – none. 

Conflicts of interest/dispensations granted – none.