Issue - meetings

Consideration was given to the report of the Director of Corporate Services detailing the annual review of earmarked reserves in advance of the formal Section 25 report (Section 151 Review of Robustness of Reserves) being brought to Council on 5 March 2024.

The Director of Corporate Services introduced the report and outlined the recommendations to Members. The level of reserves proposed including changes were explained. Decisions required relating to the civic car and IT provision were highlighted.

A Councillor acknowledged the need for reserves to be in place and expressed the hope that they could continue to be used sensibly and not for emergency expenditure to cover service funding. In that regard the proposal for a budget stability reserve was sensible. In respect of the civic car, it was suggested that it was difficult to make an immediate decision as there were practical as well as financial implications.         

The Officer responded that one of the biggest challenges facing local authorities was a lack of revenue funding coming from central government so some councils were declaring bankruptcy whilst having reserves which impacted on others who were more prudent. It was confirmed that the Council would always try and maintain adequate levels of reserves.

Discussion ensued regarding the need to continue lobbying for changes in funding processes. It was also suggested and agreed that a further report providing options regarding the civic car could be presented.

A Member asked about reserves for the Uphill Community Centre and Trinity Arts Centre. It was explained that in respect of Uphill this was historic following transfer of the facility and related to any ongoing liabilities for the Council. In respect of the Trinity Arts Centre, this was a ticket levy and was there for future investment.

The recommendations were proposed, seconded and on being put to the vote it was

            RESOLVED that

a)    the levels of reserves summarised in Section 2 of the report be noted; and

b)    the obsolete earmarked reserves outlined in Section 3 of the report be deleted; and

c)    the balance on the Civic Reserve as outlined in section 4 of the report was duly considered; and

d)    an ongoing contribution of £10,000 per year to the Members ICT reserve to cover the cost of new ICT equipment for Members every four years be approved; and

e)    the transfer of £1m from the General Fund Balance to the Budget Stability Reserve as outlined at section 6 of the report be approved; and

f)     an amendment to the minimum working balance on the General Fund from £2.5m to £2.0m be approved (this is recommended to only be taken in conjunction with recommendation 11 as the decrease is mitigated by additional earmarked funding provided in recommendation e).