Agenda item

Report of the Chief Executive (enclosed)

1.    That the full year forecast position for the 2016/17 revenue budget and capital investment programme be noted.

2.    That the forecast position on the Council’s reserves be noted.

3.    To recommend to full Council to approve the use of £60,000 from the 2016/17 forecast revenue surplus on Market Walk to invest in the Public Realm works capital scheme.

4.    To recommend to full Council to approve the transfer of £50,000 from in-year revenue underspends to the Local Development Framework (LDF) reserve to finance costs anticipated in 2017/18 and 2018/19.

5.    To recommend to full Council to approve the use of £100,000 from year-in revenue underspends to invest in the Retail Grants Programme.

6.    To recommend to full Council to approve the use of £307k of LCC Transition Reserve to fund the Chorley Employment Inclusion Project (CEIP).

7.    That the request made to DCLG to reimburse the Council for its contribution to the Croston Flood Risk Management Scheme be noted.

8.    To recommend to full Council to approve the following additions to the capital programme:

·         £200,000 increase in the Chorley Youth Zone budget to underwrite the shortfall in funding in 2017/18

·         £189,000 increase in Disabled Facility Grants budget, 100% grant funded, to bring in line with 2016/17 grant funding levels.

·         £8.1m Digital Office Park capital budget be added to the capital programme with the £4.05m Chorley Borough Council match funding to be financed through prudential borrowing. As per the report approved by full Council on 19 July 2016

9.    To recommend to full Council to note the changes to the capital programme to reflect delivery 2016/17 to 2018/19.

The report of the Chief Executive was presented by the Executive Leader and Executive Member (Economic Development and Public Service Reform). The report set out the provisional return and capital outturn figures for the Council as compared against budgets and efficiency saving targets set for the 2016/17 financial year.

Although no action was required at this stage, the project revenue outturns currently showed a forecast underspend of £237,000 against budget. The expected net income from Market Walk after the deduction of financing costs is £0.942m, with the latest projection showing a forecast outturn of £1.002m.

The Council had set an overall savings target of £150k in 2016/17 from the management of the establishment. Excellent progress had been made in this area and it was reported that the full savings target for 2016/17 had already been achieved.

The Council’s Medium Term Financial Strategy proposed that working balances were to reach £4.0m over the three year lifespan of MTFS to 2018/19 due to the financial risks facing the Council. A budgeted contribution into General Balances of £500k was contained within the new investment package for 2016/17. The current forecast to the end of September showed that the General Fund balance could be around £3.422m by the end of the financial year and following approval of the recommendations contained within the report, the forecast balance would be £3.212m and broadly in line to achieve the target of £4.0m by 2018/19.

As part of the recommendations, Full Council was being asked to approve additions to the capital programme that included a £200,000 increase in the Chorley Youth Zone budget to underwrite the shortfall in funding in 2017/18. In response to Members, the Leader explained that this was due to higher than anticipated building costs and not wanting to scale down the scheme, the Council were being asked to underwrite some of the extra funding required to proceed. Once the development had commenced, the developer was confident that the scheme would attract more funding from private investors that would reimburse these costs.

The Council was also being requested to approve the use of £100,000 from in-year revenue underspends for investment in the Retail Grant Programme. This scheme had been extremely successful in the town centre and had recently been expanded to receive applications from across the borough. The additional funding would allow those applications that were already underway to be realised, although it was intended to review the scheme in subsequent years, with more of a focus on helping to regenerate empty shops in line with its original mandate. Members commented on the success of the scheme and how it had helped to generate employment opportunities across the borough.

Decision:

1.    That the full year forecast position for the 2016/17 revenue budget and capital investment programme be noted.

2.    That the forecast position on the Council’s reserves be noted.

3.    That full Council be requested to approve the use of £60,000 from the 2016/17 forecast revenue surplus on Market Walk to invest in the Public Realm works capital scheme.

4.    That full Council be requested to approve the transfer of £50,000 from in-year revenue underspends to the Local Development Framework (LDF) reserve to finance costs anticipated in 2017/18 and 2018/19.

5.    That full Council be requested to approve the use of £100,000 from year-in revenue underspends to invest in the Retail Grants Programme.

6.    That full Council be requested to approve the use of £307k of LCC Transition Reserve to fund the Chorley Employment Inclusion Project (CEIP).

7.    That the request made to DCLG to reimburse the Council for its contribution to the Croston Flood Risk Management Scheme be noted.

8.    That full Council be requested to approve the following additions to the capital programme:

·         £200,000 increase in the Chorley Youth Zone budget to underwrite the shortfall in funding in 2017/18

·         £189,000 increase in Disabled Facility Grants budget, 100% grant funded, to bring in line with 2016/17 grant funding levels.

·         £8.1m Digital Office Park capital budget be added to the capital programme with the £4.05m Chorley Borough Council match funding to be financed through prudential borrowing. As per the the report approved by full Council on 19 July 2016

9.    That full Council be requested to note the changes to the capital programme to reflect delivery 2016/17 to 2018/19.

Reasons for recommendation(s)

To ensure the Council’s budgetary targets are achieved.

Alternative options considered and rejected

None.