The Director of Resources submitted a report that outlined the 2012/13 revenue outturn position.
The projected outturn position for 2012/2013 was a net budget saving of (-£191,000). This represented a 0.14% saving against the £133.588 million 2012/2013 budget. The projected outturn position was summarised within the report.
The outturn of the Council showed a strong, positive financial position with all services showing significant improvements on the figures reported at quarter 3. There was a clear focus on managing vacancies, restricting supplies and service spending to essentials, making the best use of grant funding and making the 2013/2014 budget cuts as early as possible.
Details of the main changes between the third quarter and the outturn figures were shown in Appendix A which was attached to the report.
All services made savings on staffing and running expenses during 2012/2013, some of which were an early achievement of 2013/2014 saving targets. The totals for each services early savings were shown in a table within the report. The additional savings had allowed the Council to make transfers to reserves, which were outlined in detail within the report.
The Council was expected to maintain a minimum balance on the General Fund of between £4.0 million and £4.5 over the medium term to cover unexpected financial risks after making specific reserves and provisions to meet known and expected liabilities. It was recommended that a further £1 million was allocated to the Change Fund
The impact of the projected outturn would result in the Council maintaining the balance on the General Fund at just above the minimum level of £4 to £4.5 million.
The Council had set up the Change Fund to pay for one-off costs associated with implementing change within services which included the funding of Invest to Save projects, Early Retirements / Voluntary Redundancies and altering the way services were commissioned and delivered. The Council had spent £3.9 million in 2012/2013 and after the proposed amendments the balance would be £ 4.7 million which was to be invested in transformation in 2013/2014.
No options were discussed within this report.
That the contents of report be noted; and
That the changes to the reserves as set out in paragraph 9 and 10 of the report be approved.
The decision was supported by the following reasons:
To ensure that Middlesbrough Council reports on resource utilisation against approved budgets; and
To consider implications upon the Medium Term Financial Plan.