Issue - meetings

To consider the report of the Head of Treasury Services.

Scrutiny Committee – Resources considered the report at their meeting on 17 September 2008 and their comments will be reported.

(Report circulated)

The report of the Head of Treasury Services was submitted, informing Members of the overall projected financial position of the General Fund Revenue Budget after three months, for the 2008-2009 financial year.

Scrutiny Committee – Resources considered the report at their meeting on 17 September 2008 and the support and comments of Members were noted.

The Head of Treasury Services identified the main variances, details of which were reported to the Scrutiny Committees through stewardship reports.  He reported that the largest debt related to recovering housing benefit which often involved court processes such as attachment of earnings over a protracted period.

Members were pleased to note the forecast underspend of only 0.1% against the revised budget of £19,533,140 after three months and the healthy forecast General Fund Working balance.

RESOLVED that the forecast financial position for the 2008-2009 financial year and the outstanding Sundry Debt position for the first quarter of 2008-09 be noted.

(Report circulated)

To consider the report of the Head of Treasury Services - report circulated

The Head of Treasury Services presented a report on the overall projected financial position of the General Fund Revenue Budget after three months, for the 2008/09 financial year.

He informed Members that the Service Committee budgets showed a forecast under spend of £19,880 against a revised budget of £19,533,140. There was a reduction of £100,000 in respect of investment interest as a result of volatile interest rates and a decision to defer borrowing to finance the capital programme. This money had been invested at a higher interest rate until it was required. The Council was on target to deliver services within budget.

A Member raised concerns with regards to the overspend in the Scrutiny Committee – Economy Budget of £61,290; if this was due to the down turn in the economy; and if there was any possibility of any short term savings to off-set this against.

The Chief Executive stated that the first quarter of the year had indicated that car parking income was down by 2% and planning fees were down by 10%. The planning fees were down due to a reduction in construction activity.

In reply to Members’ concern regarding the securing of the Council’s assets in light of the volatile money markets, the Head of Treasury Services confirmed that the Fund Managers did spread the risk and invest in low risk options. The Council had a varied portfolio of investment and the Fund Managers reacted very quickly to any changes in the Market.

In answer to a Member’s question, the Head of Treasury Services stated that the majority of debt over 5 years was due to over payment of housing benefit and the non- payment of council tax. The collection of this type of debt was in a lot of cases spread over a number of years due to the person’s ability to pay back the debt.

The Scrutiny Committee - Resources supported the report and recommended approval by Executive of the forecast financial position for the 2008/09 financial year and the outstanding Sundry Debt position for the first quarter of 2008/09.

(Report circulated)