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Agenda item

Financial Performance Report 2024-25 Quarter Three

Purpose

This report sets of the third budget monitoring position for the 2024/25 financial year.

REPORT TO FOLLOW.

 

Recommendation

That the Committee scrutinises the report and agrees any recommendations it wishes to submit to Cabinet.

 

Minutes:

The Deputy Leader and Cabinet Member for Finance and Transformation introduced the Financial Performance Report for 2024/25 Quarter Three. They raised the following points:

  • The budget tracking had shown progress since the second quarter and the shortfall had reduced to £81 000
  • The forecasted surplus for the year was £435 000.
  • Cabinet was asked to allocate the forecasted surplus to financial resilience reserves.
  • Cabinet to approve a revised Capital programme of £7.5m, including an additional £238 000 for disabled facilities grants.

The Deputy Chief Executive added the following points:

  • The overall service variations showed a change of about £91 000 from Q2. Most of this change was in non-service areas, particularly in Treasury management, which had improved due to higher-than-expected interest rates.
  • The Treasury management income was still projected prudently, with potential upside risk for an improved position towards the budgeted forecast.
  • There were no significant changes in revenue variations, income shortfalls or agency staff spend between Q3 and Q4.

Members discussed the report, raising the following points:

  • Members asked how the reduced footfall in the District’s Public Conveniences was measured, what was the evidence for this and whether it reflect reduced footfall in the locality. The Deputy Chief Executive explained that devices installed at each of the Public Conveniences supplied the data for the number of visits and not an indication of the footfall in the localities. The Deputy Chief Executive described a change in the contract that was provided for the cleaning of those facilities. Whilst there had been a reduction in the income shortfall, it was still short of the income target of around about £100k per annum.
  • Members asked if there had been any charge to the Town Council for the Chesterton by-election. The Deputy Leader and Cabinet Member for Finance informed that the Chesterton had been a by-election for the Cotswold District Council and there had been no costs to Cirencester Town Council.
  • Members highlighted the £100 000 profit from the green waste collection service. Clarification was requested on whether this surplus would be banked or used in the next year, especially since the service was supposed to be cost neutral. The Deputy Leader and Cabinet Member for Finance and Transformation explained that the garden waste service was intended to be revenue neutral, with charges set before knowing how many people will use it. They explained that the revenue collected balanced out over time rather than accumulating a specific profit or loss fund. The Deputy Chief Executive added that there had been lower costs for garden waste collections due to the waste collection rezoning. There had also been a higher-than-expected number of subscribers to the garden waste collection service.
  • The Publica Transition had cost £1.495 million this financial year, with £726,000 being an additional annually recurring impact. Concerns were raised that this figure excluded internal costs (e.g. officer time, HR, legal costs), which could significantly increase the true cost. The Deputy Leader and Cabinet Member for Finance and Transformation noted the importance of distinguishing between one-off transition costs and ongoing revenue commitments, such as increased pension contributions. The recent changes aligned staff pay and conditions with other councils and supported recruitment and retention. Whilst there was a modest cost increase for taxpayers, the transition was viewed as a necessary investment with long-term benefits.
  • Members asked whether the Publica Transition was still the biggest single risk for the financial stability of Cotswold District Council.  The Deputy Chief Executive stated that the November Mid Term Financial Statement report identified Publica Transition Phase two as the biggest risk to balancing the budget. By February 2025, the focus shifted to three main risks, including changes to external funding and local government reorganisation. Initially, funding cuts from 2026–27 were the main concern, but unforeseen issues like local government reforms were now seen as greater threats to financial stability.
  • Members requested a simple table showing the number of garden waste licenses sold and the prices charged, ideally covering at least the last six to seven years. They expressed concern that price increases did not seem to affect demand, as sales had risen despite higher charges, and sought data to better understand this trend.
  • Members were concerned about the connection between Council spending, the value delivered, and performance outcomes. They suggested the need for a more integrated information system linking spending with tangible benefits, making it easier to determine whether value is delivered. The Deputy Chief Executive agreed that aligning service and financial performance would allow Officers to direct resources to the Council’s priorities.
  • Members enquired whether the election costs for portable tablets would continue with the May elections. The Deputy Chief Executive explained that the additional cost of tablets for elections was part of a trial to explore their use, which had been ongoing in recent elections. The tablets were not purchased by the Council but provided by Civica and the Council was looking to achieve a cost reduction in future elections due to the way that votes are verified. The Deputy Chief Executive agreed that the rental for the tablets would be a recurring cost.
  • The Chair asked how much of the service charges applied to existing tenants versus newer tenants at the Trinity Road Offices. They also raised a question about the commercial property, specifically regarding the rental income shortfall, and where that shortfall might be coming from. The Deputy Chief Executive explained that the charges applied to existing tenants.

 

The Committee noted the report and did not agree any recommendations to Cabinet.

 

Councillor Jon Waring left at 17:51

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