To consider the quarterly budget position.  

That the financial performance information for the second quarter of 2018/19 be NOTED.  

45.1           The report of the Head of Finance and Asset Management, circulated at Pages No. 116-135, provided the financial performance information for the second quarter of 2018/19 which Members were asked to consider.

45.2           The Head of Finance and Asset Management explained that the report highlighted a significant surplus of £572,086 on the revenue budget and detailed the expenditure to date against both the capital programme and the approved reserves. Employee cost savings were generated mainly through staff vacancies, particularly in One Legal and Development Services, by services managing vacancies during the period by utilising current staff to cover work in the short term and limiting the use of agency staff. Democratic Services had a vacant post which was maintained to offset overtime and other pressures during an election period but, with no significant elections this year, savings had been made against the post. The surplus on income was from the garden waste scheme bringing in income above target, as a result of the implementation of the new sticker system and the fixed renewal date of 1 April, as well as additional grant income for the benefits team which had been received from central government to help with any cost of transition of claimants to Universal Credit. The positive position on income was being offset by planning application income being lower than expected with a deficit of £133,602 against the target. The service remained confident of delivering the total projected income for the year with the applications expected to be submitted.

45.3           In terms of business rates retention of £334,901, the main reason was the significant growth and receipt of further compensation from the government in respect of the multiplier cap; in the past the amount provided to local government had been calculated incorrectly so further compensation had been provided. Additional windfall figures were still being calculated and would be reported to Members in due course. In addition, Page No. 124 showed an underspend in relation to the commercial property investment programme, but Members were advised that a new unit was actively being sourced to complete the portfolio so it was expected that the money would be spent; and Page No. 135 showed expenditure of nearly £200,000 against the asset management reserve, the vast majority of which was due to be spent on the Public Services Centre and an allocation on the holding account which would be allocated at the end of the year.

45.4           The mid-year treasury report was circulated at Pages No. 126-135 and provided a lot of detail on treasury performance; the main headlines were an investment return of 1.39% that equalled £157,000 which was over £40,000 above the estimate and had been aided by the additional monies put into the fund. Borrowing had been slightly increased but, overall, there was a treasury management surplus of nearly £38,000 in the first half of the year.

45.5           Referring to the commercial property investments, a Member noted that one of the purchases was a Marks and Spencer store and  ...  view the full minutes text for item 45