Agenda item

To receive an update from the Director of Resources on the Council’s financial performance and projected outturn for 2024/25 for the revenue account, capital programme and reserves statement as at the end of July 2024.

Suggested time 45 minutes.

Councillor Bailey asked what the £350k underspend in employee costs in the Place and Climate Change Department consisted of. The Chief Executive (CEX) advised that the underspend was in the current financial year and Appendix A was the officer suggestion for savings as the current position in quarter 4.

Councillor Cushing asked if the Council had been able to manage with these vacancies should the posts still need to exist. Councillor Shires advised that there were service reviews being undertaken and that would be one of the questions that would be asked.

Councillor Holliday asked what is the effect of the outcomes being received on the residents of these vacant posts. The CEX stated that was being worked on at the moment by officers and the Cabinet, some of which may not be permanent posts and an appraisal is undertaken on the effect of the removal of a post when it becomes vacant.

Councillor Boyle asked about the ongoing costs of paying agency staff to fill vacant posts. Councillor Shires advised that the agency fees were for the finance department. The CEX stated that the agency arrangements for the deputy Section 151 Officer post would end in October.

Councillor Housden asked if the Council was being compromised by the number of vacant posts. Councillor Penfold added there was a point at which it could tip to affect the delivery of services.

The CEX advised that the recruitment challenges had changed across services over time and some of those were national shortages. Performance in some services were good compared to other authorities but there remained recruitment issues in some services. 

Councillor Penfold asked about the progress on getting donations and advertising income for Pier and Car Parks. Councillor Shires stated that the Estates Team were working on this for a more commercially based approach as referenced by the recent Corporate Peer Review recommendations.

Councillor Bailey asked if was possible to have a snapshot of the Council’s investments and to look at the Council’s best practise. The Democratic Services (Scrutiny) Officer advised that the Treasury Management Strategy ought to go to the Governance, Risk and Audit Committee.

Councillor Hankins commented that the council needed to borrow money to bridge the gap with the Parish and Town Council precept and the income and expenditure were not synchronised and asked what was the prospect of this changing.

Councillor Shires stated that the council paid the precept up front and would ask the Director of Resources to provide a written response on the level of borrowing the Council needs to cover this.

Councillor Cushing asked if the council borrowed £8m internally to pay for the work on the Reef and Refuse Freighters does this mean the council has to find another £8m to put back into the reserves. The Director of Resources was asked to provide a written response on this.

Councillor Holliday asked whether it was possible to spend the £150,000 earmarked in the capital programme for the Public Conveniences Energy Efficiencies for the provision of temporary accommodation instead. This would create revenue savings that could then be put into public toilets.

Councillor Shires advised that this scheme was to create savings in the council’s existing public toilets but would investigate and provide a written response.

Councillor Penfold asked if the Meadow Road Car Park, Cromer extension scheme was an invest to save scheme as it would provide additional revenue when completed. Councillor Shires advised that this would be for car parks across the district rather than just Meadow Road.

Councillor Cushing commented that it would be good as the budget cycle moved forward to understand what elements of the capital programme were externally funded.

Councillor Cushing asked if the Council having to collect kitchen waste in 2026 was factored into the budget. The Director of Communities advised that mandatory food collection was in last year’s Environment Act, but the secondary legislation had been delayed due to the general election.  The expectation was for this to come into effect for April 2026 and some capital funding has already been received by the Council was that was seen as not been sufficient to match the council’s costs. There was also some revenue funding expected as this was a new burden but that had not been announced by the Government yet.

Recommended that –

(A) The Governance, Risk and Audit Committee be requested to consider the Council’s Treasury Management Strategy at its next meeting,

(B) the Director of Resources be requested to provide a written response on

(1) on whether the Parish and Town Council precept payment could be synchronised so that the income and expenditure did not result in the Council having to borrow money to do this to include how much this currently costs the Council

(2) on how the Council will cover the £8m internal borrowing to pay for the work on the Reef and Refuse Freighters, and

(3) whether changing the £150,000 earmarked in the capital programme for the Public Conveniences Energy Efficiencies to instead providing for additional new temporary accommodation instead would result in greater revenue savings that could be spent on the public toilets