Issue - meetings

This report sets out the projected 2023/24 financial position and the performance position for the period covering 1 April 2023 to 30 June 2023, together with an overview of any emerging issues. This is the first report of the financial year and assesses performance against budgets, including progress in delivering the Council’s savings programme.

Resolved:

                         i.         Noted the finance and performance information;

                        ii.         Noted that management actions have already been

implemented to exercise budget management but that further controls are now needed;

                      iii.         Noted that there will be a negative impact on the Council’s medium term financial position should the proposed mitigations not be delivered;

                      iv.         Noted that further work and savings will be needed to fully mitigate the forecast overspend;

                       v.         Noted that further work will be undertaken to explore the potential for generating income through provision of some non-statutory services such as green waste collection.

                      vi.         Approved officers to take the actions needed to manage the financial position as outlined in paragraphs 14 and 15 of the report.

                    vii.         Approved increase in car parking charges by 10p per hour as set out in paragraphs 81 and 82 of the report to be implemented as soon as practicably possible. The Corporate Director of Place will liaise with the Executive Member for Economy & Transport to determine the exact date.

                   viii.         Approved a further extension to March 2025 for the letter of credit to York Museums Trust as outlined in paragraphs 26 to 28 of the report.

                      ix.         Noted the potential requirement for match funding in respect of the YMT grant bid as set out in paragraph 29 of the report.

                       x.         Confirmed that the officer decision around ward funding allocations is implemented as planned (see paragraphs 30 to 31 of the report).

Reason:     to ensure expenditure is kept within the approved budget.

The Chief Finance Officer outlined the financial challenges to the Council particularly in Childrens and Adults social care. She confirmed that these challenges were not unique to York and were effecting local authorities around the country. She outlined that the Council currently had a projected £11.4 million overspend which would require immediate action to reduce. She also confirmed that the York Museums Trust had asked for a further extension of credit to March 2025. The Chief Finance Officer clarified the decision regarding Council’s decision on Ward Committee funding could be found at paragraph 30 of the report. Finally a correction was also noted, the table at paragraph 20 of the report refers to 2023/24 not 2022/23.

Members discussed the use of spot purchasing of care home beds which were used particularly during the pandemic. The Corporate Director Adults and Integration confirmed that spot purchasing had been ended but that there was legacy costs associated with spot purchasing. She confirmed that there had been a reduction in individuals going into residential beds since ending spot purchasing and that this had not resulted in a delay in care, instead she noted that the Council had undertaken a greater consideration of care that was required.

The Executive Member for Finance, Performance, Major Projects and Equalities confirmed that the Executive aimed to manage the Council’s finances to ensure it does not have to declare bankruptcy. The Executive Member confirmed that they were working alongside officers to identify budget savings while aiming to deliver on statutory services. She noted the request during public participation to consider options such as charging for green waste collections and confirmed that a report would be brought on this topic to explore options. 

Addressing the Council’s current and previous projected overspends were discussed. The Chief Finance Officer confirmed that in previous years access to largely one of funds, such as reserves relating to addressing costs from the pandemic had supported the Council in addressing overspends.

The Executive Leader invited the Leader of the Liberal Democrat group to co-sign a letter to central government for a fair funding deal for the Council. He agreed to co-sign the letter and encouraged the Executive Leader to continue engagement from the previous administration with F20 group of lowest funded local authorities to add weight to the Councils request.

Resolved:

                         i.         Noted the finance and performance information;

                        ii.         Noted that management actions have already been

implemented to exercise budget management but that further controls are now needed;

                      iii.         Noted that there will be a negative impact on the Council’s medium term financial position should the proposed mitigations not be delivered;

                      iv.         Noted that further work and savings will be needed to fully mitigate the forecast overspend;

                       v.         Noted that further work will be undertaken to explore the potential for generating income through provision of some non-statutory services such as green waste collection.

                      vi.         Approved officers to take the actions needed to manage the financial position as outlined in paragraphs 14 and 15 of the  ...  view the full minutes text for item 27