Agenda item

The Deputy Leader of the Council and Portfolio Holder for Finance, Town Centres and Growth introduced the Finance and Performance report for Quarter 2.

Councillor Lewis asked why there was no prudent figure shown within the income to reflect any interest gathered on any unspent capital funds within the report.

The Service Director for Finance (S151 Officer) referred to paragraph 2.6 (a), which showed how much interest had actually been received as at the end of quarter two, which was £507,000 on money that had been held in the bank account in respect of the Future High Street  and Town Deal Funds.  A question had been raised previously as to why the Council did not recognise interest that would be earned, as part of the budget.  On setting the budget, there was a plan of what the Capital Expenditure would look like and it was expected that the Majority of the Town Deal and Future High Street Funds would have been spent and ordinarily it would not have earned any interest.  There were two elements to this:  interest on money held in the bank and also interest that the Council does not spend on the borrowing if none had been undertaken.

It was anticipated that some borrowing would be required by the end of the current financial year.

The Chair stated that it was correct to say that, whilst the Council did not plan to have large amounts of Government funding sitting in the accounts, it had been able to save money on borrowing interest costs and had also generated interest.

Councillor Waring referred to interest that would be paid in future years.   Was it correct that a significant amount of that would be refunded by the developer and would that be put into a reserve somewhere as a deficit or would it be shown in the accounts as a windfall.

The Service Director for Finance (S151 Officer) advised that there were two parts of the interest that would be borrowed; borrowings for the Capital Programme and the Capital and Centric projects, if borrowing was required, the interest payments could be capitalised so that when Capital and Centric purchase the asset back from the Council, they cover the interest costs. 

The Chair moved onto the Performance Indicators.

Councillor Stubbs referred to performance indicator ID1.8a – Digital Transactions; only 80% of the target was being reached for digital transactions and asked if this needed to be nearer to 90% for One Council to be successful.

The Deputy Leader stated that the indicator was a bit of a mixture .  Certain information was available on the website for residents but, ordering a brown bin, for example, became a transaction.

The Policy and Strategy Business Manager advised that there were three aspects to this indicator: the target; the quarterly results did not come in as equal flows and there was also big billing runs in the new year.  There was a steady increase in people being able to self serve around council tax and benefit claims.

Councillor Lewis asked why the target had not been met for Food Hygiene Inspections during the month when there had only been ten to do.

The Deputy Leader stated that the period was over three months and not one month and asked the Policy and Strategy Business Manager to respond.

The Policy and Strategy Business Manager stated that, of the two inspections the report was to the 30 September and on 17 October, the first one was caught up with followed by the second one on 22 October and had been down to resources and staffing issues.

Councillor Lewis stated that ten inspections not being hit over three months was worse that over a one month period.  Was there a way that they could be re-prioritised or facilitating staff usage better.

The Service Director for Finance (S151 Officer) stated that staffing issues had been discussed regarding Environmental Health in the past.  This Authority was not unique in the lack of staff in its Environmental Health Team and was not through to trying to recruit – it was a national issue.  There were now a couple of agency workers in the team.  The Service Director was looking at the structure of the team and how it could be evolved going forward.

Councillor Stubbs asked what the opportunity cost of not doing things on time was; what if an inspection was missed that stopped many people being ill.

The Service Director for Finance (S151 Officer) stated that that risk was being constantly monitored as the Council was aware of the consequences of inspections not taking place.

The Chair stated that the resources of the Service were being reviewed as part of the performance indicators but the service itself fell under a different Scrutiny Committee.  However if this Committee wanted a more detailed look into how the Service was being offered, it could be raised at the appropriate meeting.

The Chair referred to number 2.6 – The percentage of complainants informed within the required timescales of any action to be taken about alleged breaches of planning control.

The Deputy Leader stated that some of the matters were very complex and took time to resolve.

Councillor Grocott referred to the turnover of planning staff and asked if that impacted on the ongoing investigations and if so, could something be implemented to improve staff retention.

The Deputy Leader stated that the core staff in planning had been here for a while.  The reason for the target not being met was down to there being several complicated cases. 

Councillor Stubbs  referred to 1.14 – staff turnover.  The indicator showed a figure of 8.46 against a target of ten.  What was the forecast for the remainder of the year.

The Chair stated that, as it was a green indicator  he was content to watch it turn red in the next quarter if it was going to happen.

The Deputy Leader stated that the One Council process for this Authority had been brilliant.  For a £1.2m investment, the Council would save £1.18m each and every year going forward.

Councillor Parker asked if the officers involved with the three red indicators could see if anything could be done.

The Deputy Leader stated that the next figures would be out at the end of this month.

Councillor Stubbs stated that this Committee was set up to cover the budgets and the indicators cycle did not fit in with the budget cycle.

Resolved:    That the contents of the report and appendices be noted and that the Committee continue to monitor and challenge the Council’s service and financial performance for this period.

Watch the debate here