Decision details

The Executive considered report 66/10 of the head of finance.  This set out the revenue and capital, expenditure and income position at 30 September 2010, being the end of the 2010/11 second quarter. 

The report highlighted budget variances from the profiled original budget set by the Council in February 2010.  Councillors noted that at the end of the second quarter, there was a £674,000 underspend across all service areas.  However, this was offset by a loss of government grants (£190,000) and reduced investment income interest (£250,000), resulting in an underspend of £234,000.  This compared favourably with the overspend of £12,000 at the end of the first quarter.  The Executive was pleased with this news but urged further careful management of budgets for the remainder of the financial year. 

The Executive asked officers to determine the savings the council had made by buying new waste and recycling bins rather than paying for them through the contract.  Councillors noted that purchasing the bins would be significantly cheaper for the council over the anticipated life of the bins.  The head of finance agreed to calculate the savings, taking depreciation costs into account. 

To aid preparation of the draft budget for 2011/12, councillors asked for a summary of the benefits cost to the council over the last three years so this could be used to make a best estimate.  The officers should also consider expected changes to the welfare system when preparing the medium term financial plan. 

RESOLVED

To note the current position and forecast of outturn by the services.