Issue - meetings

To receive and consider the report of the Director of Finance.

1.         To note that Cabinet noted, reviewed and commented on the contents of the report.

2.         To approve the re-profiled budgets and use of S.106 funding for the capital programme, which reflects forecasted underspend against the existing budgets, as detailed in Appendix C – Capital Programme and in Appendix D – S.106 Summary of Usage of Receipts.

The Cabinet Member (Finance, Property and Assets), Councillor Matthew Tomlinson, presented a report of the Director of Finance explaining the Council’s overall financial position at the end of the financial year 2020-21.

It was proposed by Councillor Matthew Tomlinson, Cabinet Member (Finance, Property and Assets), seconded by Councillor Paul Foster, Leader of the Council and Cabinet Member (Strategy and Reform) and

Resolved (unanimously)

1.         To note that Cabinet noted, reviewed and commented on the contents of the report.

2.         To approve the re-profiled budgets and use of S.106 funding for the capital programme, which reflects forecasted underspend against the existing budgets, as detailed in Appendix C – Capital Programme and in Appendix D – S.106 Summary of Usage of Receipts.

Report of the Director of Finance enclosed.

Decision made

1. To note the contents of the report;

2. To accept the recommendations of the Scrutiny Budget and Performance Panel made on 14 June 2021;

3. To approve the re-profiled budgets and use of S.106 funding for the capital programme, which reflects forecasted underspend against the existing budgets, as detailed in Appendix C – Capital Programme and in Appendix D – S.106 Summary of Usage of Receipts.

The Cabinet Member (Finance, Property and Assets) presented a report of the Director of Finance explaining the Council’s overall financial position at the end of the financial year 2020-21.

He also referred to the recommendations of the Scrutiny Budget and Performance Panel made on 14 June 2021 which were as follows:

The Scrutiny Panel:

1.     Thanks the Cabinet Member and Director for attending and their detailed report.

2.     Notes the revenue and capital budget monitoring outturn.

3.     Welcomes the reassurance that staff vacancies are not impacting on service delivery in key areas.

4.     Asks the Cabinet Member to ensure the capital programme is deliverable in future years.

The Leader also thanked officers for their hard work during the pandemic.

One member expressed concerns and queried the proposal to use S106 monies on projects throughout the borough when, as their ward councillor, she believed it was intended solely for the benefit of residents of Buckshaw Village. One councillor also made reference to an informal conversation with a member of the Local Government Association. The Chief Executive expressed concern about this and said he would pursue the matter outside the meeting.

For clarity the Chief Executive confirmed the Council was legally entitled to enact the proposals, should they be approved. The Leader stressed that the proposals with regard to the spend of S106 monies represented the Cabinet’s policy.

Decision made

1. To note the contents of the report;

2. To accept the recommendations of the Scrutiny Budget and Performance Panel made on 14 June 2021;

3. To approve the re-profiled budgets and use of S.106 funding for the capital programme, which reflects forecasted underspend against the existing budgets, as detailed in Appendix C – Capital Programme and in Appendix D – S.106 Summary of Usage of Receipts.

4. That the Leader of the Council write to the residents of Buckshaw Village explaining the reasons for the decision concerning S106 funding.

Reasons for Decision

The Cabinet is required to consider the outturn position for the 20/21 financial year.

1. The overall position is a surplus of £570k with a further £348k from COVID funds used to support existing Council costs.

2. It is proposed to use these funds to create a number of reserves:

a.     £100k additional into the Local Plans reserve to provide sufficient funding up to 2023/24

b.     The creation of a new £400k Asset Maintenance Reserve to pay for potential future maintenance costs and part fund future capital expenditure on short-life assets such as ICT and vehicles.

c.     Creation of a £250k Income Investment Reserve to cover costs of developing new income generation projects which may not be able to be capitalised.

d.     The remaining £168k to be added to the Covid Recovery Fund.  The cost pressures of our continuing response to Covid, and of our progression through to recovery, will continue over the medium to longer term, and therefore some of the funding received over the course of 2020/21 will be required to carry forward into 2021/22 to meet the ongoing costs of Covid-19,  ...  view the full minutes text for item 11

Report of the Director of Finance attached.

The Panel considered a report of the Director of Finance which explained the Council’s overall financial position at the end of the financial year 2020-21.

The Cabinet Member (Finance, Property and Assets), attended the meeting and presented the report. He highlighted the staffing costs to be paid by Government COVID funding, the now completed Asset Review of Council buildings, the Extra Care Scheme and additional £168,000 to go in the COVID recovery fund.

Members of the Panel asked a number of questions to which the following responses were provided by Councillor Matthew Tomlinson supported by the Director of Finance:

- Staff vacancies (particularly 2 engineering posts) – the Chief Executive informed the Panel that the Capital Programme had expanded to a larger programme of work and therefore different skills needed to be bought in. Longer term the Council needed to consider what core skills it needed, e,g. a ‘hybrid’ approach strengthening the client side, with some skills being bought in.

Planning Enforcement – future plans to fill vacant post and develop the area further. The Chief Executive explained that it was difficult to source certain skills as the private sector is able to offer higher salaries. A hybrid model was being implemented, with local staff carrying out the more straightforward enforcement work and the Council buying in specialist skills for more complex cases.

Increase in provision for bad debt - Councillor Tomlinson indicated that the Council was being prudent and making provision in response to the uncertainties created by the pandemic.

The process of setting the level of reserves (which is planned for significant increase) – Councillor Tomlinson stressed this has been at the request of the Cabinet and that senior staff are robustly challenged and have to justify the figures. The Director of Finance indicated that a substantial element of the increase in reserves over the course of the year comes from Government funding for business rates.

Leisure Centre repair and maintenance budget – Councillor Tomlinson indicated that the budget had been planned, the work was required and would be followed through and delivered.

Capital Programme underspend of £2.5m – what is being to deliver the capital programme as planned. Councillor Tomlinson explained that the Capital Programme has been affected by the pandemic and some projects will need to be reprofiled. We will need to look at capacity, some supplies are difficult to resource e.g. there is a national shortage of hexagonal sheets needed for the Worden Overflow Car park should they need to be replaced.

That the Panel:

1.     Thanks the Cabinet Member and Director for attending and their detailed report.

2.     Notes the revenue and capital budget monitoring outturn.

3.     Welcomes the reassurance that staff vacancies are not impacting on service delivery in key areas.

4.     Asks the Cabinet Member to ensure the capital programme is deliverable in future years.