Contact your Parish Council


Appendix 1

 

Third Quarter Budget Monitoring 2019/20
Communities, Housing & Environment Committee
11th February 2020
Lead Officer:  Mark Green
Report Authors: Chris Hartgrove/Paul Holland

 

 

Contents 

 

 


Executive Summary                                                                                 Page         2

 

Part A: Third Quarter Revenue Budget 2019/20       

A1)    Revenue Budget: Council                                                             Page         4

A2)    Revenue Budget: Communities, Housing & Environment Page     5

A3)    Revenue Budget: Significant Variances (>£30,000)              Page     7

 

Part B: Third Quarter Capital Budget 2019/20     

B1)    Capital Budget: Council                                                                Page         10

B2)    Capital Budget: Communities, Housing & Environment        Page     10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive SummaryThis report provides Members with an overview of progress against the 2019/20 revenue and capital budgets as at 31st December 2019 (i.e. the Quarter 3 cumulative position) for the services falling within the remit of the Communities, Housing and Environment Committee (CHE). The analysis also includes both revenue and capital year-end projections (to 31st March 2020) for CHE services, as well as some important context, with consideration given to the Council’s overall position. 

The headlines for Quarter 3 are as follows:

Part A:  Third Quarter Revenue Budget 2019/20

·         Overall net expenditure for the services reporting to CHE is £5.375 million, compared to the profiled budget of £5.762 million, representing an under spend of £386,000. Based on forward projections, CHE is expected to remain within its overall net revenue expenditure budget for the year, recording an under spend of £216,000 against a budget of £8.437 million.

 

·         Overall net expenditure for the Council is £12.10 million, compared to the profiled budget of £12.211 million, representing an under spend of £0.111 million. The Council is also expected to remain within its overall net revenue expenditure budget of £20.561 million for the year.

Part B:  Third Quarter Capital Budget 2019/20

·         Capital expenditure for the services reporting to CHE of £7.123 million has been incurred against a revised budget of £13.069 million. At this stage, it is anticipated that there will be slippage of £4.165 million.

 

·         Capital expenditure for the Council overall of £28.754 million has been incurred against a revised annual budget of £42.647 million. It is anticipated that there will be slippage of £11.364 million at year end.

 


 

 

 

 

 

 

 

Part A
Third Quarter Revenue Budget 2019/20
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


A1)   Revenue Budget: Council

A1.1       At the Quarter 3 stage, overall net expenditure for the Council is £12.10 million, compared to the profiled budget of £12.211 million, representing an under spend of £0.111 million. Based on forward projections, the Council is expected to remain within its overall net revenue expenditure budget of £20.561 million for the year.

A1.2  The two charts below show the income and expenditure position for each service committee.

               Chart 1:    MBC Revenue Budget: INCOME BY SERVICE COMMITTEE

Chart 2:    MBC Revenue Budget: EXPENDITURE BY SERVICE COMMITTEE

 

 

A2)   Revenue Budget: Communities, Housing & Environment (CHE)

A2.1  Table 1 below provides a detailed summary on the budgeted net expenditure position for CHE services at the end of Quarter 3. The financial figures are presented on an ‘accruals’ basis (e.g. expenditure for goods and services received, but not yet paid for, is included). 

Table 1:     CHE Revenue Budget: NET EXPENDITURE

A2.2  The table shows that, at the Quarter 3 stage, overall net expenditure for the services reporting to CHE is £5.375 million, compared to the profiled budget of £5.762 million, representing an under spend of £386,000. Based on forward projections, CHE is expected to remain within its overall net revenue expenditure budget for the year, recording an under spend of £216,000 against a budget of £8.437 million.

A3)   CHE Revenue Budget: Significant Variances (>£30,000)

A3.1  Within the headline figures, there are a number of both adverse and favourable net expenditure variances for individual cost centres. It is important that the implications of variances are considered at an early stage, so that contingency plans can be put in place and, if necessary, be used to inform future financial planning.

A3.2  Table 2 below highlights and provides further detail on the most significant variances i.e. those meeting or exceeding £30,000, either at the end of Quarter 3, or expected to do so by year-end.

Table 2:     CHE Variances >£30,000 (@ Quarter 3)

 

Positive Variance

Q3

Adverse

Variance

Q3

Year End Forecast Variance

Communities, Housing & Environment Committee

 

£000s

Crematorium – Higher than budgeted maintenance costs (e.g. additional landscaping costs of £31,000), partly driven by un-accrued (maintenance) expenditure from 2018/19 (of £18,000) is the reason for the budget pressure at the Quarter 3 stage, although the position is expected to improve by year end.

 

 

-69

-16

CCTV – The most significant factor in the budget overspend is the delay experienced in achieving a savings target of £73,300, anticipated as part of the new CCTV arrangements.

 

 

-50

-63

Recycling Collection – Savings from the purchase of wheeled bins (£32k April to September 2019) has been the biggest factor in lower than budgeted expenditure at the Quarter 3 stage. Current expenditure patterns are assumed to continue for the remainder of the financial year.

 

+67

 

+84

Members Community Grant – 24 out of 55 members (44%) have used at least some of their 2019/20 allocation at the Q3 stage, with 2 members utilising their full allocation. It is assumed that the remaining balance will be utilised during Q4. 

 

+34

 

0

 

Table 2 cont.

Positive Variance

Q3

Adverse

Variance

Q3

Year End Forecast Variance

Communities, Housing & Environment Committee

 

£000s

Homelessness Prevention – Significant underspends on the service include the Guaranteed Rent scheme budget (£20,000), Marketing (£16,000) and General Expenses (£39,000). The Guaranteed Rent scheme is currently on hold.

 

+29

 

+69

 

Community Partnerships & Resilience Section – a budget surplus is being experienced in this cost centre following a recent re-structure (£10,000), which is being added to by a “Standby” budget surplus (£13,500). The re-structure forms part of the delivery of a £50,000 agreed savings target for 2020/21.    

 

+27

 

+39

Depot Services Section – Lower employee costs are being experienced following the recent implementation of a staff re-structure.

 

+37

 

+37

Salary Slippage – This is a credit budget, which allows for service underspends on salaries, due to temporary vacancies arising from staff turnover. There is currently an adverse variance, which is expected to be offset by service underspends by the year end.

 

 

-91

-121

Fleet Workshop & Management A reduced need for vehicle hire (saving £38,000, following the recent purchase 3 new sweepers) is the single largest item in reduced expenditure at the Quarter 3 stage.

 

+58

 

+70

Grounds Maintenance Commercial – Additional income has been generated in this area from Section 106 funded works, although this surplus is expected to be offset by a shortfall of £27,000 on miscellaneous other external income by the year end.

 

+38

 

+2


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part B 

 

 

 

 

 

 

Third Quarter Capital Budget 2019/20 

 

 



B1)   Capital Budget: Council

B1.1  The overall five-year Capital Programme for 2019/20 to 2023/24 was approved by the Council on 27th February 2019. Most capital funding will now come from prudential borrowing as other sources of funding are not sufficient to cover the costs of the programme, although funding does continue to be available from the New Homes Bonus (NHB).

B1.2  The revised 2019/20 element of the Capital Programme has a total budget of £42.647 million. At the Quarter 3 stage, capital expenditure of £28.754 million has been incurred. It is anticipated that there will be slippage of £11.364 million at year end.

B2)   Capital Budget: Communities, Housing & Environment Committee (CHE)

B2.1  Progress towards the delivery of the 2019/20 CHE element of the Capital Programme at the Quarter 3 stage is presented in Table 3 below. The budget for 2019/20 includes resources brought forward from 2018/19.

B2.2  At the Quarter 3 stage, expenditure of £7.123 million has been incurred against a revised budget of £13.069 million. It is anticipated that there will be slippage of £4.165 million at year end (the Committee will be asked to approve/note the carry forward of resources into the next financial year).

Table 3:     CHE Capital Programme 2019/20 (@ Quarter 3)

B2.3  The most (financially) notable CHE items in the table above are as follows:

·      Indicative Schemes – The budget included provision for the purchase of a property initially valued at £1.2 million. However that purchase is no longer proceeding, with the funds now earmarked for another scheme. In addition, updated cash flow projections for the Springfield Mill project anticipate slippage of £1.077 million into 2020/21 (from a budget provision of £2.924 million); and

·      Housing – Disabled Facilities Grants – Expenditure on housing adaptations often does not match the Council’s financial year. The 2019/20 budget of £1.57 million includes allocations for a wider range of initiatives, including the “Helping You Home” scheme, operated in conjunction with Maidstone and Pembury hospitals.