PURPOSE OF REPORT

To present the projected revenue and capital expenditure position, as at 30 November 2019.

EXECUTIVE SUMMARY

The Authority approved a revenue budget of £35.2m at its meeting on 17 December 2018. The forecast outturn position remains that the Authority will achieve a breakeven against this budget. A budget realignment was approved at the FRA meeting in September 2019.

The Authority approved a capital budget of £3.1m on 17 December 2018. This has been reviewed and revised to £2.1m.

RECOMMENDATIONS

Members are asked to note the draft revenue and capital outturn positions as detailed within the report.

OBSERVATIONS FROM EXECUTIVE PANEL/AUDIT COMMITTEE

This report has not previously been considered by members.

BACKGROUND

This report provides information on the draft revenue and capital expenditure outturn position for the 2019/20 financial year.

INFORMATION

REVENUE BUDGET

The table below sets out the draft revenue outturn position for the 2019/20 financial year. This details a breakeven position against the budget of £35.237m.

Employee Costs
 
For the 2019/20 financial year, the employee budget is £27.271m representing 77% of net expenditure. The draft outturn forecast is an underspend position of £0.243m and relates to delays in the recruitment of apprentice firefighters. During 2019/20 it was necessary to prioritise the recruitment of whole time firefighters to address operational capacity issues. The appointment of apprentices will be prioritised for 2020/21.

Premises
 
The budget for premises is £2.243m and an overspend of £0.290m is projected. Key areas of overspend include utility and refuse collection costs.  Fixed wire testing is being completed at all stations and this has resulted in remedial works being required in order to comply with legislation.
 
Transport
 
The projected expenditure for transport related costs is £1,037k which is a minor overspend. A change in legislation has resulted in the requirement to replace tyres in excess of 10 years of age on all appliances. The anticipated cost to complete this work in 2019/20 is £32,600. This will also be a budget pressure for future years.

Supplies
 
The projected expenditure on supplies amounts to £4.356m which is an overspend of £0.2m against budget. This includes increased costs in relation to computer licences, computer maintenance and expenditure in relation to the Local Resilience Forum. The increased expenditure on the Local Resilience Forum is offset by additional income.
 
Capital Financing 
 
The capital financing budget is £3.055m. The capital financing costs include the charge to revenue for depreciation and also the cost of borrowing. There is an anticipated underspend of £0.232m which reflects the reductions in the 2018/19 capital programme. This forecast anticipates that interest rates will remain at their current level. 
 
Income
 
Anticipated income is broadly in line with budget at £0.5m. The income includes a claim submitted to Derbyshire Fire and Rescue Authority for assistance provided during the Whaley Bridge flooding.
 
Revenue Grant Funding
 
A breakdown of grant funding, for 2019/20, is detailed below.

CAPITAL PROGRAMME
 
The Authority approved a capital programme of £3.119m. The capital programme has been reviewed and amended to fully reflect projects that are planned to be delivered in year. The revised capital programme is £2.052m.

The provisional outturn for the capital programme is £1.39m.

Since the programme was revised, projects have slipped in relation to Facilities due to works having to be re-tendered, and also ICT/Control which is largely due to the delay in the joint project with North Wales Police for the secondary control relocation.

It is anticipated that funding will be rolled over to 2020/21, to accommodate this slippage.

IMPLICATIONS