Agenda item

(Copy herewith)

The Head of Finance and Resources presented a report on the financial position as at 31 December 2013, the position on car parking income and usage and the position in relation to the Council’s outstanding debts as at 31 January 2013.

It was noted that daily car parking was forecast to be £200k below budget and that a further shortfall in season ticket income of £200k was forecast as a result of corporate contracts being cancelled.  In the current economic climate people were tending to purchase car parking tickets on an ad hoc basis rather than buying season tickets.  Officers were looking at ways to promote Council car parks and season tickets, including to railway commuters.  A report would be presented to the Committee in the summer on this issue.

The Head of Finance and Resources responded to Members’ comments and questions, as summarised below:

·         The forecast reduction of £600k to the Bad Debt Provision was basically a technical adjustment, effectively being a rent equalisation over ten years, leading to some of the benefit paid to the HRA being deducted from annual subsidy from the Department for Work and Pensions. With the de-pooling of service charges the amount deducted from annual subsidy has reduced;

·         The Call Care service is being reviewed to ensure it can be viable going forward.  As part of that process reduction in costs, relocation of the service and ways of becoming more competitive were under consideration;

·         All services carry a vacancy factor and posts are reviewed when a vacancy occurs rather than being automatically filled.  There were sometimes opportunities to “act up” when vacancies occurred.  Not immediately filling a vacancy generated a saving until that post was filled.  Officers were mindful of the need to maintain delivery of service and of the wellbeing of staff when vacancies occurred;

·         The training budget had been reducing over the last few years as the Council decreased in size.  Much of the training was now carried out on-line and through e-learning packages, rather than bringing in trainers;

·         New software licences related to either upgrades of existing software or new software required for changes to service provision, e.g. the welfare reform provisions.  In the future, LGSS would manage IT requirements for core services, should we enter the partnership;

·         More people were presenting themselves as homeless now but the numbers being placed in bed and breakfast accommodation were reducing and the management of the process had been improved;

·         Commercial rents were reviewed on an annual basis.  Insurance was reviewed on an on-going basis.  A question was asked in respect of the costs for Northampton Alive and the Head of Finance and Resources undertook to look into the matter and to provide information to Members;

·         The Head of Finance and Resources also undertook to provide Members with further information on the proceeds of mortgage repossessions, which had generated a windfall saving of £30k;

·         The underspend of £804,034 on housing capital schemes could be as a result of delays to the decent homes programme resulting from the Housing Needs Review and the new allocations system.  The Head of Finance and Resources would look into the matter and inform Members as he could not confirm this was the direct reason.  It was noted that the underspend itself would be carried forward into 2013/14 if the projects were to continue.

RESOLVED:

1.    That the contents of the report be noted as below:

·         General Fund Revenue Monitoring (Appendix 1 of the report);

·         Housing Revenue Account (HRA) Revenue Monitoring (Appendix 2 of the report);

·         General Fund Capital Monitoring (Appendix 3 of the report);

·         HR Capital (Appendix 4 of the report).

2.    That the position on car parking usage and income as at 31 January 2013 be noted (Appendix 5 of the report).

3.    That the latest position in relation to the Council’s outstanding debts as at 31 January 2013 be noted.