Issue - meetings

Report of the Deputy Director of Finance and Section 151 Officer attached.

Decision Made (Unanimously):

1.    Cabinet notes, reviews and comments on the contents of this report.

2.    Cabinet approves the following transfers to reserves from the surplus in 2019/20:

a)    Transfer £160,000 to the Borough Elections reserve

b)    Transfer £173,000 to the Restructure Costs reserve

c)    Transfer £270,000 to the ‘Other Reserve’ in relation to unspent grant income

d)    Transfer £166,000 to the ‘Other Reserve’ in relation to unspent expenditure budgets and surplus income that are needed in 2020/21

e)    Transfer the remaining surplus of £631,000 to the Business Rates Retention Scheme

3.    Cabinet approves the re-profiled budgets for the capital programme, including underspends to be carried forward, as detailed in Appendix B.

4.    Cabinet accepts the recommendations from the Scrutiny Budget and Performance Panel meeting held, Monday 3 August 2020.

The Cabinet Member for Finance, Property and Assets presented a report of the Deputy Director of Finance (Section 151 Officer) outlining the overall financial position at the end of the 2019/2020 financial year on 31 March 2020.

The overall revenue outturn was a net budget surplus of £1,400,000.  This included a £270,000 surplus ring-fenced income and £166,000 relating to budget that will be utilised in 2020/2021, leaving a net surplus of £964,000.   This surplus would be used to increase earmarked reserves. 

The report had been considered by the Scrutiny Budget and Performance Panel on Monday, 3 August 2020 with the recommendations from the meeting issued to Cabinet.

Following an enquiry about the definition of section 31 payments, a briefing note would be provided to all Members. An explanation would also be provided for the underspend on Disability Facilities Grants.

Decision made:  (Unanimously)

1.    Cabinet notes, reviews and comments on the contents of this report.

2.    Cabinet approves the following transfers to reserves from the surplus in 2019/20:

a)    Transfer £160,000 to the Borough Elections reserve

b)    Transfer £173,000 to the Restructure Costs reserve

c)    Transfer £270,000 to the ‘Other Reserve’ in relation to unspent grant income

d)    Transfer £166,000 to the ‘Other Reserve’ in relation to unspent expenditure budgets and surplus income that are needed in 2020/21

e)    Transfer the remaining surplus of £631,000 to the Business Rates Retention Scheme

3.    Cabinet approves the re-profiled budgets for the capital programme, including underspends to be carried forward, as detailed in Appendix B.

4.    Cabinet accepts the recommendations from the Scrutiny Budget and Performance Panel meeting held, Monday 3 August 2020.

Reason for Decision:

To ensure Cabinet is aware of the overall financial position for 2019/2020 and to agree to the necessary transfers to reserves.

Alternative options considered and rejected:

None.

Report of the Deputy Director of Finance and Section 151 Officer attached.

The Cabinet Member for Finance, Property and Assets presented a report of the Deputy Director of Finance (Section 151 Officer) on the budget outturn for 2019-2020.

The report outlined the Council’s overall financial position at the end of the financial year on 31 March 2020, which would be considered at Cabinet on Wednesday, 5 August 2020.  The overall revenue outturn was a net budget surplus of £1,400,000.  This included a £270,000 surplus ring-fenced income and £166,000 relating to budget that will be utilised in 2020/2021, leaving a net surplus of £964,000.   This surplus would be used to increase earmarked reserves. 

Reference was made to the impact of COVID-19 and business rates, which were difficult to predict, but there was confidence that the Council had healthy reserves to deal with future challenges.

The Panel raised the following queries/comments, which the Cabinet Member and Deputy Director of Finances responded to:

u  With regards the overall budget surplus, it was felt that the variances were relatively small overall and that the bulk had come from business rate income, which was difficult to assess due to the complex formula involved.

u  In response to a question as to whether the council tax increase for this year was required, the position at the time identified that the budget was required and appropriate.  There were now risks and challenges facing the Council with regards COVID-19 and business rate collection. 

u  Reference was made to the surplus green waste income, which had generated more income than envisaged.  However, based on experiences elsewhere it was not expected to continue to increase greatly.

u  Following a query about the Leisure Campus abortive project costs, clarification was provided that the costs were part of a long-term project by the previous administration.  Following a review it was felt that the costs of the Leisure Campus were not affordable to the Council.  Some of the costs might be useful for future projects, but some of the preparatory costs would not be and therefore had to be written-off.

u  The reduction in relation to income from the Trade Waste Service was mentioned, which was a competitive market.  Further information would be provided to the Panel on the reduction.

u  With regards the increase in the provision for bad debt, Members were advised that there was a modest increase in provision, which is based on a formula that looked at age of debts etc.

u  In response to a question around staffing costs and whether the Council had the capacity to deliver our services and the corporate plan, re-assurance was provided that this was in place.  The corporate strategy was being re-freshed and the Chief Executive was looking at ensuring the resources were in the right place to deliver the strategy.

u  Re-assurance was provided that the current 3 vacancies in Gateway were being recruited to and were not impacting on the level of service provided by the team.  The Panel requested further information on the staffing vacancies in the Gateway Team.

u  Reference  ...  view the full minutes text for item 13