Issue - meetings

Meeting: 07/11/2019 - Corporate Policy and Resources Committee (Item 41)

41 Budget and Treasury Monitoring Mid Year Review 2019/20 pdf icon PDF 1 MB

Additional documents:


Members considered a report setting out the revenue, capital and treasury management activity from 1 April 2019 to 30 September 2019.


The highlights from the report included:


·         There was a forecast net contribution to reserves of £628,000.  This was after taking into account the approved carry forward of £25,000, and £170,000 of carry forward requests from services for future approval;

·         £389,000 of the forecast contribution related to the interest payable on borrowing, which had previously been approved by the Corporate Policy and Resources Committee to set aside at the year end to the Valuation Volatility Risk Reserve should it be required;

·         Treasury Management – an average return of 1.555% had been achieved for the quarter.  Total investments at the end of the period stood at £16.2 million.

·         The forecast outturn position for capital expenditure was £22.655 million.


Further information was provided by officers and Members:


·         WLDCs earmarked reserves were allocated for spending, and having requirements to use those reserves.  WLDC choose to earmark reserves at the earliest opportunity.  WLDC was well placed compared to some other authorities;


·         A Crematorium Manager was appointed in June 2019; one of the reasons for doing this well in advance of opening was to be able to review the plans for the crematorium.  The level of cremations expected was around 35% of the marketplace at a previous point in time; after reviewing how many cremations were expected in year one, this level of 35% was exceeded by around 20 cremations;


·         The Car Park Strategy Investment Reserve was a method of funding future car park development.  Due to the way this income came forward, it would be insufficient to provide this contribution.  Users of car parks on West Lindsey would be unaffected;


·         The green waste service income figure target was being exceeded – however there were two different figures within the report.  The correct figure of £102,000 was made up of £100,000 of additional income and £2,000 of net operational savings;


·         The underspend for the viability funding capital grant for the Sun Inn of £58,000 had been retained until the restaurant underneath the Travelodge in Gainsborough had been provided;


·         Negotiations were ongoing with a factory close to the riverside walkway so that the Riverside Walk could be completed.  WLDC were working with ACIS to provide 130 homes at this site in Gainsborough;


·         The unforeseen overspend of £547,000 at the site of the new Market Rasen Leisure Centre was due to underground pipework being discovered that had to be diverted;


·         Following the meeting with the Gainsborough Investment Network on 31 October, the next stage of the four bid process would be a visit to Gainsborough by the Access Foundation on 18 November.  If the bid from WLDC was successful, there could be an award of £100,000 development grant towards the final bid process;


·         The bad debt provision had dropped because of the transfer of service users in receipt of universal credit; this debt was no longer being held by WLDC;


·         The CLLA - LAPF £3 million investment  ...  view the full minutes text for item 41