Issue - meetings

The Director of Corporate Services presented the quarter one budget and treasury monitoring report of 2022/23, based on the forecast outturn as at 31 May 2022. It was explained that whilst it was early in the financial year, the report highlighted known pressures and savings and potential budget risks at this stage.

In relation to revenue budgets, the forecast outturn position was a net deficit from reserves of £38,000. There was a saving of £74k on the grounds maintenance contract following a tender exercise. The reduced costs were due to the economies of scale as the contractor who was able to secure all tendered lots in the Lincolnshire framework.

There was a pressure of £25k against the insurance premium budgets, again following a tender exercise. Fuel costs were reporting a pressure of £48k, this was based on the price paid per litre in May (£1.42) and the consumption during 21/22. The latest price paid in June was £1.61 per litre which would increase the pressure the £90k if that price was maintained for the rest of the year. Fuel was a significant budget risk and both factors would be monitored with an updated position reported at quarter two. For context, every 1p increase in fuel price equated to around a £200 pressure per month. Income from the sale of parking permits was forecast to be £42k below budget, as many sectors continued to work remotely.

Another significant budget risk was the potential pay award for 22/23. Salary budgets 2022/2023 were based on a 2% pay award. This was not expected to be sufficient based on current inflation rates, and feedback from the East Midlands Council pay briefing. £250k of the 2021/2022 surplus was approved as a budget carry forward into 2022/2023 which would allow for up to a 4% increase. However, there would be an ongoing budget pressure from 2023/2024 to be considered through the MTFP and Budget Setting process.

FEES & CHARGES

There were changes to some statutory planning fees which the council had been made aware of in recent weeks, which were included within the report at section 2.3.2.

RESERVES

Members were asked to approve use of the unapplied grants reserve. £122.4k being the balance of the Outbreak Prevention Grant paid to West Lindsey in 21/22, which would be spent on agency staff to carry out food safety inspections to help clear the backlog due to the pandemic, and to ensure obligations were met. It was noted there might be a small underspend on this which would be known later in the year.

CAPITAL

The Capital Forecast Out-Turn for 2022/2023 was £15.018m, a variance of £0.445m against the approved budget of £15.464m.

The Committee was asked to approve the following amendments to capital schemes:

1)    Unlocking Housing (living over the Shop) - capital budget reinstatement of £0.070m. This scheme was closed in 2021/2022 with the balance declared as an underspend and removed as it was grant funded. However, the grant funding deadline has been extended.

2)    Smart Device Refresh-Members  ...  view the full minutes text for item 21