The report of the City Treasurer is now enclosed

A report was submitted to provide a summary of the position of the 2018/19 revenue budget at the end of December 2018. The report gave details of the projected variances to budgets, the position of the Housing Revenue Account, Council Tax and business rate collection, and the state of the Council’s contingency funds. Projecting forward from the position at the end of December 2018 it was forecast that by the year-end in March 2019 the revenue budget would be overspent by £1.060m, which was better than the previous projection of an £3.974m overspend as reported in December (Minute Exe/18/115).

The report explained the steps that were being taken to further reduce the size of the projected overspend and to achieve a balanced budget.

In the report the following revenue budget virements were proposed and agreed:

·         estimated sum of £2.957m to be vired from Children’s Services to Adult Social Care for 2018/19 in advance of this work on disaggregating business support to the Adults and Children's Services Directorates.

·         a virement of £500k from underspend within Revenues and Benefits budget to the discretionary payments budget to provide further support to vulnerable households, this being £400k for discretionary housing payment budget and £100k to the Welfare Provision Scheme.

·         a virement of £60k from non-pay to pay in the Streetworks team to fund two additional FTE's to process the permits for a higher number of partial road closures due to the scaffolding/hoarding requirements for developments in the city.

When setting the 2018/19 budget the Council has agreed to hold some funds that were to be allocated throughout the year. The report proposed one use of some of these budgets to be allocated. This was agreed:

·         an extra £146k allocated to the budget for effluent costs arising from increased pumping of water from landfill sites at Barlow Hall Farm and Cringle Farm. The recently repaired pump had increased the volume of water being pumped, and so the effluent charges for that volume of water.

Similarly, when setting the 2018/19 budget the Council has agreed to hold a central contingency fund to meet unexpected demands. The report proposed one allocation from that fund. This was agreed:

·         Manchester Arena First Anniversary Commemoration - £277k to fund costs associated with a number of events held across the City.

The report also addressed use of the Council reserves. These were agreed:

·         Music Hub Grant - £19k to be drawn down from the Children’s Services reserve to enable disadvantaged children to attend cross music centres, and to support the tuition of endangered instruments.

·         Car Park Dilapidation Surveys - £203k to be drawn down from the Parking reserve to conduct a dilapidation survey of all assets included in the NCP/Joint Venture, to help determine how off street parking should be managed at the end of the existing NCP/JV arrangement.

Notification had also been received of an additional external grant which had not been approved as part of the 2018/19 budget setting process. The proposed use of this funding was agreed:

·         £71k from the Department of Education for support to end homelessness; the funding to enable the Council to employ specialist Personal Advisors to provide intensive support to care leavers who are at highest risk of homelessness or rough sleeping.

Decisions

1.         To note the report.

2.         To approve the proposed virements as set out above.

3.         To approve the use of budgets to be allocated as set out above.

4.         To approve the use of contingency funds as set out above.

5.         To approve the use of reserves as set out above.

6.         To approve the use of grants in addition to that already planned, as set out above.