Issue - meetings

Financial Performance Report 2024-25 Quarter Three

Purpose

To detail the Council’s financial performance for Quarter Three 2024-2025

Recommendation

That the Executive resolves to:

1. Note the Council’s Financial Performance for Quarter Three 2024-2025

2. Delegate authority to the Director of Finance, in consultation with the Executive Member for Finance, to review earmarked reserves to mitigate against the financial risks identified in this report.

Additional documents:

Minutes:

Councillor Aleric Smith, Executive Member for Finance, introduced the item, the purpose of which was to detail the Council’s financial performance for Quarter Three 2024-2025. Councillor Smith summarised the report highlighting the following items:

There was an overall overspend of £34,344, an improvement from quarter two where the position was £96,821 overspent.
Green waste was currently £64,000 below budget.
A new contract for Dry Mixed Recycling started on 1 October 2024. In the first four months of the contract the average monthly cost has dropped by £23,000. The budget for 2025/26 included a saving of £300,000 for the processing of recycling.
Development Management was difficult to forecast with no discernible pattern. At the end of quarter three the income sat at £240,000 below target. Although the income position had improved, the Council would only reach its target if it received a major application. The year end forecast was £145,000 behind target. The situation had been reflected in the budget for the next year.
Bank and credit charges were reported as overspent for the previous two financial years. A new contract for processing had brought cost back within original budget for 2024/25. The forecast for quarter four was an underspend of £70,000.
With regards to investment property, Councillor Smith advised that Between Towns Road in Cowley remained empty and was overspent as the Council was liable for Business Rates and Security costs. Officers were undertaking an asset review to consider alternative use for the site.
Talisman Business centre showed a forecast underspend of £80,000 in quarter four.
The income contingency of £200,00 put against the large Leisure Contract did not appear like it will be needed.
The Council had identified risks in the Budget for 2025/26 relating to the Leisure Contract and Business Rates reset. It was recommended that any surplus in revenue outrun be transferred to budget deficit reserve to mitigate these risks.
It was recommended that an earmarked reserve be set up to cover the extensive costs of exploring and scoping the optimal unitary solution.
Councillor Smith noted that the agile working programme had been completed at Elmfield. There were some urgent works required to Woodgreen. The Solar PV replacement at Elmfield had also been completed. An Investment Grade Proposal for the decarbonisation of Windrush Leisure Centre in Witney was expected and the business case would go forward to the Executive in June 2025.
Four new waste vehicles had been delivered.
Councillor Smith concluded that the revenue outturn position was forecast to be £58,762 underspent. However, this position included elements which would not be known until year end. Therefore, although the position at the end of quarter three remained encouraging, there were still risks.

Councillor Alaric Smith, Executive Member for Finance. proposed accepting the recommendations as detailed in the report.

Councillor Andy Graham, Leader of the Council, seconded the recommendations.

RESOLVED:

That the Executive:

1. Note the Council’s Financial Performance for Quarter Three 2024-2025

2. Delegate authority to the Director of Finance, in consultation with the Executive Member for ... view the full minutes text for item 314

Meeting: 05/03/2025 - Overview and Scrutiny Committee (Item 113)

Webcast for 05/03/2025 - Overview and Scrutiny Committee

113 Financial Performance Report 2024-25 Quarter Three PDF 398 KB

Purpose:

To provide details of the Council’s financial performance at the end of 2024-25 Quarter Three (Q3).

Recommendation:

That the Committee considers the report and agrees any recommendations it wishes to submit to the Executive on 12 March 2025.

Additional documents:

Minutes:

The Executive Member for Finance Introduced the Item. The purpose of the report was to detail the Council’s financial performance for Quarter Three 2024-2025. The Executive Member highlighted the following points;

The income target for Development Management was not expected to be met.
The refurbishment of the Elmfield office had been completed, with a tenant now in occupation.
A new dry mixed recycling contract (from October) had led to a £23,000 per month cost reduction, contributing to a £300,000 saving in the 2025-26 budget.
The Four new vehicles which had been approved in January 2024 had been delivered, reducing reliance on hired vehicles.
On Decarbonisation projects there had been delays with the works at Carterton Leisure Centre, but the Windrush Leisure Centre was progressing well, with a business case expected to come forward in June.

In discussing the report, the Committee noted that;

In 2.18 of the report it stated that a report on the asset review of Between Towns Road would be brought to the Executive in the first half of 2025/26. It was asked whether this would still be the case. The Chief Finance Officer said that teams were in discussion on this but that they would have a much better idea in Q1 of the new financial year.
While the £54,000 refund of bank charges was welcome, it was questioned why the Council had overpaid this amount of money. The Chief Accountant explained that this was a backdated refund extending past the financial year of the report. Due to the large volume of transactions that the Council undertook, these were due to small outliers (e.g. a transaction costing 2p instead of one) over a long period of time.
The fact that the Elmfield Office was now occupied by tenants was welcome, and members asked how much money the Council was making from this. The Chief Accountant explained that there was a 20% return on the capital investment from the site.
There was no reason to believe that take up of the garden waste service was low. W Payment schemes or support for garden waste services could be looked at but as this had not been included in the 2025/26 budget it would need to be reviewed as part of the budget setting process for 2026/27.
A large number of food waste bins damaged. The Publica Assistant Director explained that there had been a 44% increase in broken bins in January but that officers were looking at understanding the reasons behind these cases.
In 2.28 of the report, it stated that a capital loss of £497,000 had been incurred due to a pooled fund operated by UBS closing. The Council had not been offered any alternatives by UBS. The Council had set up an earmarked reserve and utilised the statutory override provision to ensure that its revenue position would not be impacted.
Councillor Natalie King made reference to TAC305 of the report, where it stated that the building can be untenanted due to major works required on ... view the full minutes text for item 113

Issue - meetings

Financial Performance Report 2024-25 Quarter Three

Meeting: 12/03/2025 - Executive (Item 314)

Meeting: 05/03/2025 - Overview and Scrutiny Committee (Item 113)

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