Agenda item

RESOLVED:

1.     That it be noted that the Council achieved -£7.1m underspend for 2015/16 (Annex 1, paragraph 1 of the submitted report). 2015/16 is the sixth year in succession, the Council has achieved a small underspend or balanced outturn

2.     That it be noted that requests to carry forward £3.9m of the underspend for spending on planned service commitments that continue beyond 2015/16, leading to a net underspend of -£3.2m. This is less than 0.2% of the Council’s full year gross expenditure budget of £1,675m (Annex 2 of the submitted report)

3.     That it be that services achieved £65.8m efficiencies and savings (Annex 1, paragraph 57) against the planned target of £67.4m

4.     That it be noted that the Council invested £251.7m through its capital programme in 2015/16 (Annex 1, paragraph 68)

5.     the Council’s balance sheet, year end reserves and balances, debt analysis and treasury management report (Annex 1, Appendix 1, paragraphs App 6 to App 21).

6.     That £3.9m revenue carry forward requests and transfer funding to the Budget Equalisation Reserve (Annex 1, paragraph 3 and Annex 2 of the submitted report) be approved

7.     That £3.2m transfer of remaining revenue underspend to the Budget Equalisation Reserve also (Annex 1, paragraph 4 of the submitted report) be approved

8.     £4.3m draw down from the waste sinking fund to offset higher waste management costs in 2015/16 (Annex 1, paragraph 31)

9.     That £18.0m additional funding to enhance existing 2015/16 Highways and Environment schemes (Annex 1, paragraphs 69 to 73 of the submitted report) be approved

10.  That £0.5m transfer of Revolving Infrastructure and Investment Fund net income back into the fund (Annex 1, paragraph 47 of the submitted report) be approved

11.  That £13.0m net capital programme re-profiling (Annex 1, paragraph 74 and Annex 2 of the submitted report) be approved

12.  That £2.1m to be earmarked from the capital programme efficiencies for future SuperFast Broadband initiatives, subject to robust business case proposals and subsequent Cabinet approval (Annex 1, paragraph 76 and Annex 2 of the submitted report) be approved

13.  That a £40,000 contribution to commemorate the bicentenary of the artist G F Watts in 2017 (Annex 1, paragraph 77 and Annex 2 of the submitted report) be approved.

Reasons for Decisions:

This report is presented:

·      to review and manage the budget outturn for the 2015/16 financial year in the context of a multi-year approach to financial management; and

·      to approve final carry forwards to enable on-going projects to continue.

[The decisions on this item can be called in by the Council Overview Board]

The Leader of the Council introduced the 2015/16 Budget Outturn report by congratulating the Finance Service on producing the report a month earlier than in 2013/14 and two months earlier than in 2010.

He highlighted the following elements of the report:

1.     -£7.1m revenue underspend, which was mainly due to:

·        Services achieving some 2015/16 savings early,

·        Generating new income and

·        A deliberate strategy, in light of the serious financial challenges the council faces in 2016/17, to manage revenue and capital spending to achieve a sustainable budget.

2.     £65.8m efficiencies achieved against a target of £67.4m.

·        This is the sixth consecutive year the Council has achieved a small underspend and delivered over £60m of savings for Surrey’s residents.

3.     £251.7m capital investment, including £62.5m in long term investment assets.

4.     £3.9m total revenue carry forward requests for spending on planned service commitments that continue beyond 2015/16.

5.     £15.1m net capital adjustment requests, including prioritising £8m schools schemes by bringing them forward; and adding £18m additional funding for highways and environment schemes.

He highlighted that the report contained a list of the requests that needed to be looked at carefully to ensure that services had the capacity meet these extra commitments in 2016/17 and be confident the council overall had sufficient financial headroom in its budget.

He explained that demographic demand pressures continued to grow in 2015/16. However, despite this, all services achieved at least 90% of their savings targets.

Other Cabinet Members were invited to highlight the key points and issues from their portfolios, as set out in the Annex to the report.

In closing the item the Leader of the Council commended the excellent work had been done but said that the significant reduction in funding from government meant that the council still faced a deficit and that officers would be asked to find another £109m of savings which would be tough and this required a lot of work to be done.

RESOLVED:

1.     That it be noted that the Council achieved -£7.1m underspend for 2015/16 (Annex 1, paragraph 1 of the submitted report). 2015/16 is the sixth year in succession, the Council has achieved a small underspend or balanced outturn

2.     That it be noted that requests to carry forward £3.9m of the underspend for spending on planned service commitments that continue beyond 2015/16, leading to a net underspend of -£3.2m. This is less than 0.2% of the Council’s full year gross expenditure budget of £1,675m (Annex 2 of the submitted report)

3.     That it be noted that services achieved £65.8m efficiencies and savings (Annex 1, paragraph 57) against the planned target of £67.4m

4.     That it be noted that the Council invested £251.7m through its capital programme in 2015/16 (Annex 1, paragraph 68)

5.     That the Council’s balance sheet, year end reserves and balances, debt analysis and treasury management report (Annex 1, Appendix 1, paragraphs App 6 to App 21) be noted.

6.     That £3.9m revenue carry forward requests and transfer funding to the Budget Equalisation Reserve (Annex 1, paragraph 3 and Annex 2 of the submitted report) be approved

7.     That £3.2m transfer of remaining revenue underspend to the Budget Equalisation Reserve also (Annex 1, paragraph 4 of the submitted report) be approved

8.     £4.3m draw down from the waste sinking fund to offset higher waste management costs in 2015/16 (Annex 1, paragraph 31)

9.     That £18.0m additional funding to enhance existing 2015/16 Highways and Environment schemes (Annex 1, paragraphs 69 to 73 of the submitted report) be approved

10.  That £0.5m transfer of Revolving Infrastructure and Investment Fund net income back into the fund (Annex 1, paragraph 47 of the submitted report) be approved

11.  That £13.0m net capital programme re-profiling (Annex 1, paragraph 74 and Annex 2 of the submitted report) be approved

12.  That £2.1m to be earmarked from the capital programme efficiencies for future SuperFast Broadband initiatives, subject to robust business case proposals and subsequent Cabinet approval (Annex 1, paragraph 76 and Annex 2 of the submitted report) be approved

13.  That a £40,000 contribution to commemorate the bicentenary of the artist G F Watts in 2017 (Annex 1, paragraph 77 and Annex 2 of the submitted report) be approved.

Reasons for Decisions:

This report is presented:

·      to review and manage the budget outturn for the 2015/16 financial year in the context of a multi-year approach to financial management; and

·      to approve final carry forwards to enable on-going projects to continue.