Issue - meetings

To consider report 38/10 of the Head of Finance. 

The Executive considered report 38/10 of the Head of Finance, which detailed the council’s revenue expenditure for 2009/10. 

The medium term financial plan to 2011/12 had provided for gradually increasing service costs against a stable Council Tax increase.  Funds and balances would smooth out financial pressures during 2009/10.  Despite the economic downturn and a significant drop in income, the council’s net revenue position for the year was an underspend of £1.168m against the working budget.  Consequently, the council had reduced its expected use of funds and reserves from £1.75m to £0.49m.  The council had also written off the anticipated loss of the Landsbanki investment one year earlier than expected. 

Councillors were pleased with the management of the council’s finances during the year in difficult economic circumstances.  This was down to hard work by all council staff in containing expenditure, following the management team’s early intervention.  The Executive thanked all staff, including the management team. 

Councillors questioned whether the budget set in February 2009 was correct but concluded that the budget was set with the best information available at that time and during the year, the economic climate had been even more unpredictable than usual.  The Executive considered that the council was as protected as it could be against future challenges. 

RESOLVED

(a)       To note the overall outturn position of the council’s revenue budgets in 2009/10, as well as the outturn of individual service areas and cost centres; and

(b)       To take into account the impact of the outturn position in the integrated service and financial planning process when setting the 2011/12 original budget.