Agenda item

The Interim Director of Finance presented the Finance and Performance Monitoring Report Quarter 2 2023/24 for Members’ consideration.

Included in the report were details of the full year revenue budget of £13.8m which was approved by Full Council in February 2023. It was confirmed that training for budget mangers had been undertaken.

Currently the Council was forecasting a revenue overspend of £815,000, which would be mitigated in part by the application of the £351,000 from the Utilities Reserve approved at Quarter 1. This resulted in a £464,000 overspend. Members were informed that the overspend had predominantly been as a result of additional pressures including the staff pay award, fuel and fleet costs and the increased cost of temporary accommodation.

In terms of the Capital Programme, Members were reminded that a £10.9m programme had been approved in March 2023 and that many of the schemes were in partial delivery in the 2022/23 financial year.

Some updates were provided to Members regarding some of the Capital projects including Windsor Street. It was explained that there had been some additional levels of pollution identified at this site which needed to be assessed under new Environment Agency (EA) rules. The Council was currently holding discussions with the Department for Levelling Up, Housing & Communities (DLUHC) to resolve these issues in terms of time and cost. However, it was noted that the EA were carrying out countrywide investigations as a result of the change in rules which might impact on the timing of the Windsor Street site.

Cabinet was informed that there were some proposed changes to the Capital Programme included in the report that required approval. These included the proposal to bring forward £50,000 of the £177,500 capital bid for an ICT server replacement to this municipal year. It was explained that this was an important project for the Council as the cyber security linked tape drive replacements would improve cyber security and help to prevent impacts of any future cyber security attack. An increase to the Capital Programme of £410k in 2023/24 also required approval to ensure the continuation of the Civica OpenRevenues system for the administration of Council Tax, Business Rates and Housing Benefits. A decrease in cost for year 3 of the Barnt Green toilet works as highlighted in the MTFP report also required approval.

Cabinet was informed that the Energy Efficiency Strategy continued to be progressed across the property portfolio and that Housing Property Services had carried out a desktop study to rule out any presence of Reinforced Autoclaved Aerated Concrete (RAAC) in Council properties. It was noted that so far, no RAAC had been identified.

It was reported that work had been undertaken in order to get The Artrix in a position to open for use by a theatre provider.

The procurement pipeline which included Capital and Revenue procurements over £50,000 was briefly discussed and the Interim Director of Finance explained that he was currently in the process of organising an all-Member session to clarify the procurement process. Further details regarding this session would be available shortly.

Following the presentation of the report, Members thanked the Interim Director of Finance and the Head of Finance and Customer Services for all their hard work pulling this comprehensive report together.

Following consideration of the report there were some comments and questions from Members. The Cabinet Member for Planning, Licensing and WRS stated that he had arranged to meet with the Assistant Chief Fire Officer to discuss the issues identified at the Windsor Street site. It was stated that this meeting and any information needed to be shared with relevant Members and partners as soon as possible.

Some queries were raised in respect of the Performance Indicators contained within Appendix E of the report. However, it was decided that as there was currently a review of performance measures underway a discussion regarding these would be more appropriate during the review process.

RESOLVEDthat

1)    The current overspend position in relation to Revenue and Capital Budgets for the period April to September and the full year revenue overspend position of £464,000 after applying £351,000 from the Utilities Reserve as approved at Quarter 1 be noted.

2)    The present status of the Asset Strategy.

3)    There was no change to the procurements over £200,000 due to be delivered during 2023/4 from those listed in Quarter 1.

4)    The Quarter 2 Performance data for the Period April to September 2023 be noted.

5)    The application of £50,000 from the General Fund for Enforcement Action to be taken at a site in Alvechurch.

RECOMMENDEDthat

1)      Changes to the Capital Programme in relation to ICT be actioned, bringing forward Cyber Security linked Tape Drive replacements forward from 2024/5 into 2023/4, and increasing the budget in 2023/4 to ensure the continuation of the Civica OpenRevenues system for the administration of council tax, business rates and housing benefits.