Agenda item

Financial Outturn 2016/17 and Reserves

Meeting of Cabinet, Wednesday 12th July 2017 6.00 p.m. (Item 19/17)

Minutes:

The Leader welcomed Councillor S. R. Colella to the meeting of the Cabinet to put forward comments on behalf of the Independent Alliance Group on this item.

The Cabinet considered a report on the Council’s financial position for Revenue and Capital for the Financial Year 2016/17.

The Executive Director Finance and Corporate Resources reported that the Council’s External Auditors had commenced work and to date had not raised any concerns.

Members’ attention was drawn to the Revenue Budget summary table which indicated savings/additional income of £238k to be transferred to balances. This figure was following the proposed addition of a number of new or additional reserves totalling £899k.

It was noted that a number of services had generated additional income including cesspool emptying, garden waste, bulky collections and planning applications. Whilst there was a shortfall on car parking income this was likely to be partly due to a reduction in the number of spaces available due to redevelopment work.

In relation to the Capital Budget it was noted that the significant projected saving within “keep my place safe and looking good” was due mainly to the fleet replacement programme and a delay in receiving vehicles from suppliers. Within “help me to live my life independently” the saving was due to the Disabled Facilities Grants. The funding received from Worcestershire County Council had ben ring fenced for this.

It was reported that the proposed new reserves included significant increased funding for Economic Regeneration to fund Economic Development schemes across the District, additional funding to support the feasibility and implementation of housing schemes across the District and a new reserve to fund support for a review of Transport, Highways and Infrastructure implications.

Officers reported that it was intended that the format of the finance monitoring report in future would change and would focus more on “exceptions.” The report had been considered by the Finance and Budget Working Group.

Councillor Colella thanked Members for the opportunity to contribute to the consideration of the report and raised a number of points for clarification/discussion including:

· The total sum for savings/income generation of £1.137m which had increased significantly from the end of Quarter 3 - it was accepted that further improvements were needed in financial forecasting;

· The intended use of the proposed additional Economic Regeneration reserve of £500k - it was reported the intention was to use this in particular to create on - going income streams for the Authority to support future services. In addition the Council’s Economic Priorities and the Council Plan actions would be supported;

· Potential to utilise additional income generated through the Lifeline Scheme to support improved CCTV facilities;

· Whether the New Homes Bonus Scheme available funding was the final figure - it was confirmed this had not changed;

· Whether the budgets which had been “underspent” would be reduced to a lower base in future – the Chief Executive responded that urgent work was to be undertaken with Heads of Service and Senior Managers to understand fully the significant change in figures between Quarter 3 and Quarter 4.

The Leader thanked Councillor Colella for his input to the discussion.

Following discussion it was

RECOMMENDED:

(a) that the outturn financial position on Revenue and Capital and the transfer to balances of £238k as detailed in the report be noted;

(b) that the movements of £549k in existing reserves as set out in Appendix 3 to the report, which reflects the approval required for April 2016 – March 2017 be approved;

(c) that the addition of new reserves of £899k as set out in Appendix 3 to the report, which reflects the approval required for April 2016 – March 2017 be approved.

Supporting documents: