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No Report Title: Directorate of Place – Finance Report 2019/20 – Quarter Three HR No

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No Report Title: Directorate of Place – Finance Report 2019/20 – Quarter Three HR No Report to: Executive Cabinet Member – Deputy Leader th Consultation with Date of meeting: 17 February 2020 other officers Fina Ye Jane Report of: Director of Place, Director of Corporate Report ECMDL/748 nce s t Resources number: Polla Contact officer: Telephone 01204 Janet Pollard , Head of Strategic Finance rd number 336710 Legal No Report title: Directorate of Place – Finance Report 2019/20 – Quarter Three HR No Equa No Not confidential lity This report does not contain information which warrants its consideration in the absence of the Impa press or members of the public. ct Asse Purpose: This report provides the Executive Cabinet Member with information ssme nt relating to the financial quarter three projected outturn position of the requi Directorate of Place. red? Recommendations: The Executive Cabinet Member is recommended to: (a) Pr No e- Note the quarter three financial position of the Directorate of Place. co Approve revisions made to the capital programme which fall under their portfolio. ns No Authorise the Director of Place to call off under any available ult framework(s) to enable the capital programme to progress. ati Note the key findings in the report. on re Decision: po rts Background Is there a documents: need to consult on Signed: the Leader/Executive Cabinet Member Monitoring Officer proposals? Date: (b) Po st co ns ult ati on re po rts Please confirm that the consultatio n response has been taken into considerati on in making the 1 recommen dations. Visio 1. n Start outc Well ome 2. s Live Well Plea 3. Age se Well identi 4. X fy the Prosp appr erous opria te 5. Visio Clean n and outco Green me(s 6. ) that Stron this g and repor Distin t ctive relat es or contri butes to by puttin g a cross in the relev ant box. 2 Summary: This report outlines the financial quarter three position in respect of the Directorate of Place. Key Issues Revenue Expenditure: Revenue expenditure as at quarter three for the Directorate of Place showed a projected overspend against budget of £850k after planned reserve movements. There are three significant variances within the Directorate of Place as described in the report. Capital Expenditure: Capital expenditure for the Directorate of Place as at quarter three was £35.1m against a revised budget at quarter one of £55.5m. Reserves: Directorate of Place has fully used all general reserves in year and holds a net balance of £2.7m earmarked reserves. Efficiency targets: The budgeted efficiency savings for 2019/21 for the Directorate of Place are £5.7m. All planned savings are projected to be achieved. Risk: Specific areas of financial risk identified for the year related to loss of income due to the economic downturn, energy prices for street lighting and the cost of the work being identified through property condition survey’s 3 1 Introduction This report provides the Executive Cabinet Member with the quarter three projected outturn position relating to the Directorate of Place. The information is divided into five elements. Revenue expenditure Capital expenditure Reserve movements Efficiency targets Areas of financial risk 2 Revenue expenditure 2.1 Revenue budget The approved revenue budget for the Directorate of Place is £33.103m Table One: Directorate of Place Approved Revenue Budget - 2019/20 Quarter 3 Total £'000 Original Approved Budget 2019 / 20 34,031 Less Recharges 2019 / 20 297 Original Manager's Controllable Budget 2019 / 20 33,734 Virements in Year : Horwich Leisure Centre capital financing transferred to Corporate Centre -800 Energy procurement budget transferred to Corporate Resources -70 Revised Insurance charge -54 Leadership Support -106 Adjusted Manager's Controllable Budget 2019 / 20 32,704 Add Adjusted Recharges 2019 / 20 399 Adjusted Budget as at December 2019 33,103 2.2 In year budget adjustments There have been four budget adjustments made during quarter three: 4 Transfer of capital financing budget for Horwich Leisure Centre to Corporate Resources Transfer of Energy Procurement budget from Property to Corporate Resources Procurement HUB Revised Insurance budget taken to Corporate Centre Leadership support budgets centralised within Corporate Resources 2.3 Financial Position The final outturn position for the Directorate of Place is projected to be an overspend of £850,000 to be met from reserves. Table Two below outlines the financial position of the Directorate of Place after movements to reserves, as at 31st December 2020. Table Two – Directorate of Place Financial Position – 2019/20 Quarter Three Net Projected Year End Portfolio Budget Outturn Variance £’000 £’000 £’000 Executive Cabinet Member - The Leader 205 208 3 Executive Cabinet Member - Deputy Leader 9,966 10,321 355 Executive Cabinet Member - Environment Regulatory (151) (153) (2) Executive Cabinet Member - Environment Delivery 15,527 15,948 421 Executive Cabinet Member - Highways & Transport 5,975 5,907 (68) Executive Cabinet Member - Strategic Planning & Housing 1,078 1,248 170 Executive Cabinet Member - Stronger Communities 503 474 (29) Total Directorate of Place 33,103 33,953 850 . Variance analysis Appendix A provides a detailed breakdown by service of the quarter three projected year end variance. There are three significant variances during quarter three; Deputy Leader Portfolio – Corporate Property – £567k Following the comprehensive programme of condition surveys undertaken across Council Buildings, a significant financial pressure was identified to fund the required level of planned and reactive works across the building portfolio. This is to be managed through current revenue budgets with the support of reserves. Work is underway to manage the implementation process and identify funding resources during the year. Environmental Services Delivery – Bereavement Services £135k Reduced income achieved for burials & cremations. Strategic Housing & Planning – Planning Division £169k Additional legal costs arising from public inquiries and agency cover of vacancies. 5 3 Saving and efficiency 2019/21 reductions In setting the Strategic Budget for the year, the Directorate of Place was required to implement £5.7m of saving and efficiency reductions over the 2019/21 financial years. Action is being taken to implement the reductions and ongoing monitoring of expenditure against specific options has been incorporated into the financial monitoring. Details of progress are given in appendix C all options scheduled for 2019/20 are expected to be achieved. 4 Capital Programme Total capital expenditure at quarter three for the Directorate of Place is £35.1m against a revised quarter three allocation of £55.5m. 4.1 In year movements The capital programme of the Directorate of Place, had approvals totaling £107.134m. This comprised of: the original approval of £73.195m in the capital programme report to Council on 20th February 2019, £11.340m brought forward from the residual 2018/19 programme an additional £22.719m of funding programmed since the capital programme report of February 2019. Of these approvals, £51.76m are currently forecast to be carried forward into 2020/21 for schemes profiled to complete in 2020/21 or beyond. £M 2019/20 Original Approval 73.195 Brought forward from 2018/19 11.340 Additions in year 22.719 Total available funding: 107.254 Quarter 3 Revised Allocation 55.494 The Directorate of Place’s capital programme can be broken down across the portfolio areas as follows: Table Four Directorate of Place Capital Programme 2019/20 2020/21 Original Revised Actual Original Revised Allocation Allocation 31/12/2019 Allocation Allocation 2019/20 2019/20 2019/20 2020/21 2020/21 £ £ £ £ £ Total Deputy Leader Portfolio 61,005,448 37,966,571 25,762,938 31,103,862 62,655,109 Total Environmental Services 7,014,295 6,196,608 3,196,992 0 6,527,655 Delivery Portfolio Total Highways & Transport 5,175,430 11,330,361 6,170,443 0 12,662,519 Portfolio Directorate of Place Grand 73,195,173 55,493,540 35,130,373 31,103,862 81,845,283 Total Full capital programme is shown in appendix D 6 4.2 One Off Investment As part of the annual budget approved by full Council, one off funding was approved for a range of strategic investments covering both capital and revenue schemes over four years. Where the portfolio has one off investment details are shown in Appendix E. 4.3 Town Centre Masterplan Cabinet approved at their meeting of 25 September 2017 a Town Strategy for use of resources of £100m approved at their previous meeting of 17th August 2017. Capital and revenue spend within the current financial year is included with the respective revenue and capital sections of this report. Below is a summary in financial terms of progress to date from inception. Town Centre funding update as at Quarter 3 £'000 Budget 100,000 Budget Gross Spend 124,478 Net cashflow 84,412 Acquisitions to be recovered by funding agreements 40,066 £'000 Expenditure previous years 21,932 Expenditure 2019/20 to date 23,507 Cumulative Total Spend to Date 45,439 4.4 PSP Bolton Information on the current financial position of Bolton Council’s share within PSP Bolton as at 30 September 2019 is as follows. Income Rent received on PSP managed properties -£105,542 interest generated on cash balances -£4,160 -£109,702 Expenditure 5 Reserve Cost of property transactions in year £2,736 movements Net cost of Ground Rent Company £80,775 Share of Administrative costs £4,571 Table Five – Other Costs of Partnership £16,110 £104,192 Directorate of Place Reserves Surplus in year to 30 September 2019 -£5,510 Position - 2019/20 Outturn Bolton Share of retained profits held by PSP £2,339,133 Reserves Summary by Opening Balance Movements in Closing Balance 7 Portfolio at 01/04/19 Year 31/03/20 £ £ £ Deputy Leader -4,186,274 4,652,415 466,141 Environment Regulatory -113,426 95,318 -18,107 Environment Delivery -2,509,469 370,080 -2,139,386 Highways and Transport -781,862 37,381 -744,481 Strategic Housing and Planning -119,175 89,812 -29,363 Stronger Communities -100,000 -102,326 -202,326 Total -7,810,206 5,142,680 -2,667,522 After the projected use of reserves of £5,142,680 during 2019/20, the closing balance at 31 March 2020 is projected to be £2,667,522.
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