Decision details

Members considered a report setting out the revenue, capital and treasury management activity from 1 April 2018 to 31 December 2018.

Currently, Finance colleagues were estimating a £379,000 surplus for 31 Mar 2019, which would be a contribution to the General Fund balance.  This was after taking into account £248,000 of underspends which would be carried forward; these underspends include those projects who had a timescale that exceeded the year end.

The capital forecast outturn was estimated at £29.967m; that included £7million for commercial investment properties. 

The scheme at Caistor Southdale, which had been provided as an addendum, related to the property and land that was partially owned by WLDC.  The NHS owned the GP Surgery.  Conversations had been held with LACE housing, and the GP and Property team at the NHS.  A proposal had been reached which would allow the scheme to go ahead; the accommodation would be for over 55s, the GP surgery would be owned by WLDC, but be let to the GPs on a 20 year lease.  A Parent Company guarantee would be granted by the Clinical Commissioning Group (CCG) for this.  A further report including more detail on the scheme would be considered by Corporate Policy and Resources committee in due course.

The average interest rate achieved by the authority was 1.514%; the total cost of investments at the end of quarter 3 were £13.4 million.  An additional loan of £2.5 million was borrowed from the Public Works Loans Board (PWLB) at a rate of 1.7%.  This increased the amount of borrowing to £8.5 million as at 31 December.  However, a further loan of £2.5 million was taken out in February 2019, and it was anticipated there would be further borrowing before the year end.

The commercial strategy approved in 2015/16 had now exceeded its target of £1million; officers were thanked for this.

                        RESOLVED to:

(1)  Accept the forecast outturn position of a £379k net contribution to reserves as at 31 December 2018, as at section 2 of the report;

(2)  Note the use of Earmarked Reserves during the quarter approved by the Executive Director of Resources using delegated powers, as at paragraph 2.5.1 of the report;

(3)  Accept the Commercial Income position, as at paragraph 2.3 of the report;

(4)  Approve the revised Capital Budget of £30.17m to reflect the

additional Disabled Facilities Grant (DFG) of £0.069m, and approve the budget and spend for the Trinity Arts Centre sound equipment of £0.032m and the reduction of £0.039m for Council owned asset maintenance as detailed in paragraphs 3.1.4, 3.1.5 and 3.1.6 of the report. 

In addition, it was resolved to approve a capital budget of £1.92m for the Caistor Southdale Scheme and a spend of £340k for the acquisition of land.

(5)  Accept the Treasury Management position and prudential indicators for the quarter.