Issue - meetings

Members considered the Budget and Treasury Monitoring review for Period 3 of 2019/20, which set out the revenue, capital and treasury management activity from 1 April 2019 to 31 December 2019.

The Business Support Team leader read out the highlights from the report:

Note:   Councillor David Cotton briefly left the Chamber.

·         There was a forecast net contribution of revenue to reserves of £914,000.  £469,000 of this was interest payable on borrowing which was moved to the Valuation Volatility Risk Reserve at the year end;

·         The significant variances in the remaining £445,000 were:

o   £159,000 income from investment properties;

o   £102,000 income from green waste services;

o   £24,000 trade waste income;

o   £324,000 underspend on salaries.

·         These variances had been offset by pressures on the budget, namely £73,000 pressure on rental income, and a £48,000 pressure on Planning services;

Note:   Councillor David Cotton returned to the Chamber.

·         Planning was a demand led service, so the Commercial Contingency Budget would be used to aid the £60,000 pressure on Planning fee income;

·         There was an estimated £40,000 contribution towards bad debt provision;

·         In terms of treasury management, an average return of 1.743% had been achieved for the quarter; total investments for the end of the period were £11.53 million;

·         The forecast outturn for capital expenditure was £20.263 million.  There was a proposed net budget reduction of £62,000, and new budget requests of £76,000 (which included £50,000 for flood recovery support and £26,000 to replace the civic car).  The majority of the purchase price for the civic car would be offset by the sale of the existing vehicle, valued at £22,000, leaving a balance of £4,000;

·         Members were being asked to forward fund the Corringham Road scheme to the sum of £500,000;

·         The Heritage Action Zone bid within the Capital Monitoring table in the report had been unsuccessful.

Following this introduction, Members asked questions of officers and provided comment on the report.  Further information was gathered and this included a small pressure on car parking income because of the timing of the closure of the Roseway car park.  Also mentioned were items on the Crematorium and aged debt; these issues would be addressed through matters arising at the next committee.

                        Unanimously RESOLVED to:

(1)  Accept the forecast outturn position of a £914,000 net contribution to reserves as at 31 December 2019;

(2)  Accept the use of Earmarked Reserves during the quarter approved by the Chief Finance Officer using delegated powers;

(3)  Approve the amendment to the fees and charges schedule for the Crematorium;

(4)  Approve the Capital Budget amendments within the report and accept the current forecast outturn position;

(5)  Accept the Treasury Management and Prudential Indicators to 31 December 2019.