Issue - meetings

1. That the revenue budget virements as set out in appendices 1 to 3 be approved and incorporated into the three-year medium-term financial plan.
2. That the revenue budget supplementary estimates as set out in appendices 1 to 3 be approved and incorporated into the three-year medium-term financial plan.
3. That the revenue variances to be managed as set out in appendices 1 to 3 be noted.
4. That the capital variances as set out in appendices 1 to 3 be approved and incorporated into the three-year medium-term financial plan.

Councillor Jonathan Solomons moved the recommendation as set out in the report, seconded by Councillor Stephen Giles-Medhurst.

Members expressed dissatisfaction with the current budget monitoring practices and variance reporting within the Council. It was noted that variances should only reflect unforeseen changes that could not have been anticipated when the budget was set. Members pointed out the detrimental practice of end of year spending to avoid budget cuts, arguing that successful budget management should focus on cost reduction and achieving underspends.

Members raised concerns regarding the significant increase in election expenses, noting a 100% rise, compared to previous years, and discussed the potential to consolidate elections to occur once every four years. It was noted however, that the costs associated with elections and the administration of the electoral roll are integral to maintaining democratic processes.

On being put to the Council the motion was declared CARRIED by the Chair of Council, the voting being 25 For, 0 Against, 11 Abstention.

RESOLVED:

1. That the revenue budget virements as set out in appendices 1 to 3 be approved and  incorporated into the three-year medium-term financial plan.
2. That the revenue budget supplementary estimates as set out in appendices 1 to 3 be approved and incorporated into the three-year medium-term financial plan.
3. That the revenue variances to be managed as set out in appendices 1 to 3 be noted.

That the capital variances as set out in appendices 1 to 3 be approved and incorporated into the three-year medium-term financial plan.

This report shows the expected financial position over the three year medium term based on the Council’s actual financial performance at the end of period 6 (30 September 2024) set against the latest budget.

Recommendation

1. That the revenue budget virements as set out in appendices 1 to 3 be approved and incorporated into the three-year medium-term financial plan.
2. That the revenue budget supplementary estimates as set out in appendices 1 to 3 be approved and incorporated into the three-year medium-term financial plan.
3. That the revenue variances to be managed as set out in appendices 1 to 3 be noted.
4. That the capital variances as set out in appendices 1 to 3 be approved and incorporated into the three-year medium-term financial plan.

Alison Scott, Director of Finance, presented the report.

The committee noted that the timing of the report meant the staff pay award of 3.4 – 4% was not accounted for in the figures, but that the money required to meet the commitment was held in contingency funds.

In response to questions, officers confirmed that the changes in insurance costs reflected the costs previously being set for a five-year period. As the contract had since been retendered the costs had changed, but contingencies had been held to account for increases in the costs of insurance. The committee noted that works on Three Rivers House had been accounted for in the capital programme and were within budget.

RESOLVED:

To recommend to Council:

1. That the revenue budget virements as set out in appendices 1 to 3 be approved and incorporated into the three-year medium-term financial plan.
2. That the revenue budget supplementary estimates as set out in appendices 1 to 3 be approved and incorporated into the three-year medium-term financial plan.
3. That the revenue variances to be managed as set out in appendices 1 to 3 be noted.
4. That the capital variances as set out in appendices 1 to 3 be approved and incorporated into the three-year medium-term financial plan.