Budget Monitoring 2013/14 General Fund, HRA and Capital Programme

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1 Open Decision Item One Corby Policy Committee 6 th August 2013 Budget Monitoring General Fund, HRA and Capital Programme SYNOPSIS BOX This report sets out the income and expenditure forecasts for the year in relation to the General Fund, the Housing Revenue Account (HRA) and the Capital Programme based on April to June expenditure. Where there are potential overspends, action plans should be provided by the relevant Heads of Service to bring expenditure back into line with budget. 1. Background Details In line with corporate budgetary control procedures, reports on the latest financial forecasts for in relation to both revenue and capital programmes are brought to this committee on a quarterly basis. This is the first full report for, and represents a full year forecast based on the period April to June. 2. Report General Fund Revenue The General Fund shows an underspend of 50k, against a gross budget of 49m. There are several projected over and underspends and these are broken down by Service Level in Appendix A. The key points to note are as follows: Chief Executive the overspend relates to additional subscription costs to SEMLEP. Assistant Chief Executive the underspend is in relation to a part year vacant post savings. Neighbourhood Pride whilst there is a salary saving of 3k, there is also an overspend of 8k for CCTV. This is in respect of a 25k budget saving that was put forward of which only 17k will be achieved in. Planning and Environmental Services although there are underspends on green waste disposal cost and increased recycling credits of 50k and contract savings on the environmental cleansing contract of 20k, there are expected planning income shortfalls of 57k. In addition there is a 42k pressure for the Rushden Lakes appeal. The decision to support the appeal as part of a consortium with Kettering, Northampton and Bedford was agreed at Leader/Deputy/CMT and was originally thought to cost around 25k. Costs have since escalated because Bedford Borough Council withdrew from the consortium and the duration of the inquiry was extended from 8 to 12 days Culture & Leisure the overspend is made up of 15k of additional repairs and maintenance costs at the Pool and 13k of lost income at the Golf Course due to weather enforced golf closures earlier in the year

2 Corporate Services - Finance the underspend is comes mainly from 66k of additional income from the Corby Enterprise Centre, slightly reduced by 6k of additional agency costs within legal services. CB Property although there are additional running and repairs and maintenance costs of 68k for Cube and Grosvenor House, these are more than offset by net additional income of 119k from the Council s commercial properties. Human Resources - the overspend is due to higher net salary and consultation costs for ongoing professional advice and support. Other although no underspend is currently showing, there is likelihood that there will be underspend on interest and borrowing costs as interest rates have continued to remain at historic low levels. This could be as high as 200k and as with last year, it will be recommended that should it materialize, it is transferred into the interest reserve, to help mitigate any unforeseen significant interest rate increases in the future. Achievement of Budget Savings The budget process approved savings of 809k. Of these savings, all but one is on target to be achieved. The one at risk is the CCTV saving referred to above, whereby a saving of 17k is likely to be achieved in the current year rather than the 25k originally assumed. Housing Revenue Account The HRA shows a projected underspend of 220k, against a gross budget of 23m. There are several projected over and underspends and these are broken down by Service Level in Appendix B. The key points to note are as follow. Responsive Repairs/General Management/Sheltered Housing/Emergency Alarms the variances are largely due to salary savings. Hostels/Single Persons Accommodation the overspend is due to a shortfall in service charges income. Supporting People no overspend is currently showing despite the withdrawal of funding from the County Council, since it is expected that OCPC will approve the introduction of revised working practices and benefit arrangements to cover the loss of funding. Other/Technical the underspend is due to a potential reduction in the bad debt provision of 66k and the purchase of additional leave of 29k. Income the shortfall on income reflects the delays in the new build programme which was originally assumed to be part of the income. There is also a potential additional weeks rental in the year. However, this is subject to a separate report and so no variance is assumed at this stage. Capital Programme A breakdown of the latest capital programme for and expenditure to the end of June is shown in Appendix C. For projects over 1m that cover more than 1 year a whole project life budget and forecast outturn is also shown

3 The only variance requiring approval within the Housing capital programme is 105k from external insulation works to fund 6 additional vehicles. 3 new budgets require approval within the General Fund capital programme. These are as follows: 168k of railway station improvements funded from S106 income m of Oakley Vale Infrastructure works, funded from future capital overage receipts. 62k for a Play area funded from Section Options to be considered (if any) This report demonstrates that both the General Fund and the Housing Revenue Account are showing relatively healthy positions as compared to the budget. No remedial action is therefore required at this stage of the financial year. 4. Issues to be taken into account:- Financial/Risks This report considers the key risks and financial issues in some detail. Legal There is a statutory requirement to maintain revenue balances on both the General Fund and HRA. Performance Information Financial performance should be considered in the context of levels of performance achieved in delivering services. Best Value, Community Safety, Human Rights, Equalities, Sustainability There are no issues in relation to these arising directly from this report. 5. Conclusion This report shows an underspend of 50k for the General Fund and an underspend of 220k for the HRA. No major adverse variances are currently being shown for the capital programme A robust approach to budgetary control continues with further scrutiny being applied during the financial year, including the 2014/15 budget process. A number of variances that have so far been identified will continue to be monitored during the course of the year with Heads of Service continuing to work up action plans to contain any potential overspends within their service areas. 6. Recommendations The Committee: (a) Note the financial position of the General Fund, the Housing Revenue Account and the Capital Programme contained in this report. (b) Instruct the relevant Heads of Service/Directors and the Director of Corporate Services to continue to review all areas of expenditure within the General Fund and the Housing Revenue Account with a view to maximising the net underspend

4 (c) Approve the virements and additions to the capital schemes as detailed under the Capital Programme section above. Background Papers Budget Monitoring Working Papers External Consultations None List of Appendices Appendix A General Fund Budget Monitoring Appendix B HRA Budget Monitoring Appendix C Capital Programme Monitoring Wards All Wards Officer to Contact Adrian Sibley, Director of Corporate Services, Ext

5 General Fund Budget Monitoring Appendix A Based on Period April June 2014 Service Original Budget Latest Budget Expenditure Latest Budget Income Latest Budget Projected Outturn (Underspend)/O verspend A B C=B-A D E=D-C Chief Executive 1,078,996 1,933, ,035 1,071,936 1,080,246 8,310 Assistant Chief Executive 21, , ,215 23,300 9,690 (13,610) Neighbourhood Pride 823,423 1,230, , , ,153 4,680 Planning & Environmental Services 4,668,780 7,003,021 2,318,394 4,684,627 4,713,937 29,310 Culture & Leisure 2,737,029 5,497,368 2,702,320 2,795,048 2,822,792 27,744 Corporate Services 968,448 28,714,039 27,695,298 1,018, ,041 (59,700) CB Property (1,359,334) 3,151,911 4,520,065 (1,368,154) (1,418,908) (50,754) Human Resources 21, , ,843 29,339 33,119 3,780 Transport & Plant Admin - 13,800 13, Other - (Borrowing etc) 1,500,981 1,500,981 45,000 1,455,981 1,455,981 - General Fund Total 10,461,162 49,429,929 38,845,638 10,584,291 10,534,051 (50,240)

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7 Capital Programme Monitoring Appendix C Housing (HRA) Capital Programme : as at the end of June 2013 Whole Life Whole Life Scheme Description Full Full Approved Latest Spend Projected Over/ Budget Outturn Budget Budget To Date Outturn (under) Comments Decent Homes Decent Homes : Kitchen & Bathrooms 1,114,000 1,114,000 87,942 1,114,000 0 Decent Homes : Central Heating Replacement 700, ,000 (42,572) 700,000 Final account still in progress - still awaiting some 0 contractor invoices Decent Homes : Rewires 200, ,000 (8,227) 200,000 0 Decent Homes : Entrance Doors/Flats/dwellings 200, ,000 24, ,000 Budget set on figure for Swan Doors - works now in-house with 0 potential underspend - too early to determine figure Capital Works Capital Works : Structural Works 75,320 75,320 15,462 75,320 0 Capital Works : Disabled Adaptations 400, ,000 29, , k payment just going through Capital Works : No Fines external insulation 1,125,000 1,020, ,020,000 Market testing being carried out - potential 1m funding from one fo two companies currently involved in the tender 0 process as per July OCPC report. 105k to be vired to purchase 6 additional vehicles. To Be Approved Major Roofing Works 259, , ,000 0 Stock Condition Survey 100, ,000 15, ,000 0 Capital Works : Velbert House Refurbishment 0 0 (79,764) 0 0 Final account not yet agreed - 30k discrepancy Orchard Upgrade 53,830 53,830 49,798 53,830 0 Project ongoing. Repairs Scheduling System 13,750 13,750 10,295 13,750 0 Vehicle Purchase 35, ,000 33, ,832 Small underspend - additional 105k required to be vired from (1,168) external insulation budget for 6 more vehicles as part of 9 required for DLO restructure. To Be Approved Asbestos Removal 394, ,000 42, ,000 0 Voids Major Works 84,000 84,000 65,710 84,000 0 Velbert House Roofing 140, , ,000 0 Budget set on 3 quotes received in July 2012 Health & Safety Ratings 200, ,000 14, ,000 0 Potential underspend but too early to project a figure. Sykes Court Roofing 100, , ,000 Potential 40% saving by carrying out comprehensive repair (40,000) on the framework contract. L.A.New Build L.A.New Build : Arran way 3,469,650 3,061, , ,000 45, ,000 0 L.A.New Build : Copenhagen Rd 1,428,000 1,427,780 90,760 90, ,760 0 L.A.New Build : Canada Sq 1,619,100 1,619, , , ,000 0 L.A.New Build : Finland Way 1,117,000 1,117,000 1,072,910 1,072,910 2,800 1,072,910 0 L.A.New Build : Garage Sites 4,025,000 4,025, , , ,090 0 HOUSING CAPITAL FEES 757, , ,000 0 Total Housing Programme 8,011,660 8,011, ,455 7,970,492 (41,168) Original Budget 8,011,660 Brought Forward from 2012/13 Latest Budget 8,011,660 Needs Approval for supplementary estimate 0

8 Appendix C General Fund Capital Programme : as at the end of June 2013 Whole Life Whole Life Scheme Description Full Full Approved Latest Spend Projected Over/ Budget Outturn Budget Budget To Date Outturn (under) Comments Corporate Director (Operations) Office Relocation to Corby Cube 24,689 24, ,689 0 To be vired to Cube SC802 - AMG approved Corby Cube & Parklands Gateway Project 47,612,000 47,612, (15,157) 0 0 Environmental Quality Travellers Site Extension 22,270 22, ,270 Carry forward required to provide for retention repayment 0 and refund to external grant provider. Terms of grant require funds not expended on project to be reimbursed. Carry forward budget funded from external grants, ERDF Electric Charge Posts 220, , , ,000 0 and SEMLEP. Carry forward budget funded by external loan from Zero Energy Homes 200, , ,000 0 SEMLEP. Feasibility study has indicated that the project will incur Corby Culvert 103, , significantly higher costs (circa 1m) and so the project is (103,840) now under review and will require a separate report. Any unspent amount will be carried forward. Railway Station Improvements 167, ,560 0 Funded from Section 106. To Be Approved Provision & Replacement of Wheeled Bins 40,000 40,000 37,841 40,000 0 Carry forward 64,980 plus 9080 claw back of funds as a Private Sector Housing - Home Repair Grants 74,060 74,060 52,019 74,060 0 result of breach of grant terms. Approved carry forward 76,160 plus 200,000 agreed CBC contribution plus 182,720 DCLG grant determination Disabled Facility Grants 458, ,880 39, , /14. Previously approved budget 378,000 based on 200,000 CBC contribution and 178,000 estimated grant from DCLG. Property Services Oakley Vale Phase 6 Development 2,270,410 2,270, ,440,920 75, ,066 Budget of 1,440,920 required to undertake infrastructure works. 13/14 spend projected at 797,066 as per latest (643,854) cashflow, remaining budget will require a carry forward to 14/15. Funded from overage on Capital Receipts. To Be Approved Culture & Leisure Coronation Park Rockingham Triangle Stadium 3,184,150 3,184, , ,000 (14,534) 250,000 0 Further OCPC report may be required Play Areas - Gretton Under 5's 0 61,680 54,825 61,680 0 Section 106 funded. To be approved Woodlands Improvements 273, ,000 55, ,000 0 Oakley Vale Community Facility 1,337,784 1,337, , , , ,630 0 Customer First 0 ICT Hardware Replacement 150, ,000 79, ,000 0 Neighbourhood Pride S106 - CCTV - Greatline/Tesco 8,660 8, ,660 0 S106 - CCTV - Priors Hall 6,440 6, ,440 0 Total General Fund Programme 2,418,469 4,088,629 1,123,623 3,340,935 (747,694) Additional Budgets requiring - OCPC Approval Oakley Vale Phase 6 Development - AMG Approved 11th June 1,440,920 Railway Station Improvements - AMG Approved 11th June 167,560 Play Areas - Gretton Under 5's 61,680 Latest Budget 4,088,629