Agenda item

Members considered a report setting out the final budget outturn position for revenue and capital in 2019/20.  The report also requested approval for a transfer to General Fund working balances, a request for approval to enter into a grant agreement, and a capital budget amendment for 2020/2021.

The Business Support Team Leader introduced the report and firstly advised of a typographical error with recommendation K, advising Committee it should read as follows: -

“Due to Covid-19 financial impacts, a revised budget for the year 20/21 and a mid-year review of the medium term financial plan will be presented to the November meeting of this committee.”

This was the final outturn report for 2019/20, following the closure of accounts. In relation to revenue, the final position is a surplus of £1.385m, with approval requested for a movement to general fund balances of £817,000. This brought the general fund working balance to £4.234m at year-end.

The final outturn position was an increase of £5,000 from that reported at period 4 – and details of the movements from period 4 to the final position were included in the report at section 2.2.

The final movement to general fund, after carry forwards, was £815,000 and a transfer to valuation volatility reserve of £568,000, which increased the balance of that reserve to 8% of our investment portfolio purchase price.

With regard to capital expenditure the outturn position remained unchanged from the quarter 4 position at £18.029m, after carry forwards of £4.654m.

Members were also asked to approve entering into a grant agreement with the Police and Crime Commissioner for Lincolnshire for the delivery of CCTV upgrades funded by the Safer Streets Fund, detailed at section 3.1. A further report for budget approval would be submitted to committee for budget approval once grant funds have been secured.

Members were also asked to approve a maximum capital budget of £428,000 as grant funding towards the Riverside Walk/Bowling Green land scheme funded from S106, detailed at section 3.2.

Finally Section 7 of the report provided Members with an update on the Council’s response to Covid-19 and the potential financial pressures that this was likely to have on our resources. The financials contained within the report were based on estimates and assumptions made at the end of April 2020.

Before opening the matter for the debate the Leader placed on record his thanks to the Finance Team.  They had been 7^th Authority in the whole country to submit their statement of accounts and the first in Lincolnshire. 

Debate ensued and in response to Members’ questions, it was confirmed that the Leisure Contract Staffing costs listed in Appendix 3, were a West Lindsey risk and were borne out of the authority covering the cost of two employees, referred to earlier in the meeting.   It was further confirmed that the actual cost was £60k, the 78K having being an original estimate.

Explanation was also offered in respect of Covid capital impacts, with Officers explaining that some Officer time was specifically charged against capital projects.  These Officers had been re-deployed but this had resulted in a capital impact against the projects. 

These figures had been provided to the Government to assist them in predicting what would be the likely shortfall across Local Government, despite £3.2 billion having been distributed nationally.

In response to suggestions that the Administration must be concerned about the future, whilst acknowledging these were unprecedented times and one the most difficult times the country had faced in living memory, the 6% target against commercial investments was still being achieved.  The volatility return was well placed.  The Leader considered the Council was one of the best placed financially in Lincolnshire, and previously taken decisions had ensured the Council was in a robust position.   The Chief Executive concurred, advising, overall, the commercial portfolio was holding up.  The Authority continued to lobby for costs having secured circa £1m to date.  The reserves were in a strong position.  Spend would be reduced over the next 6 months with a Full review of the Medium Term Financial Plan, planned for November 2020.  The figures provided were currently the best estimates.  Costs were reviewed monthly and returns made to Central Government.  There was confidence that the Authority would be able to manage itself through the difficult times ahead. 

Noting a mid year financial review was planned in November, indication was sought as to whether Councillors would have the opportunity to input into the wider recovery plan, prior to that November report.  Members were advised that Council would be meeting on 29 June to discuss the very subject, furthermore the report would propose Members hold a workshop, at which a much franker and broader debate could be held about what the future may look like.   At county level, the Chief Executive was regularly preparing reports on the countywide position with authorities working collectively in respect of recovery.

Confirmation was provided that by accepting recommendation (d) , Members were merely accepting to enter into a grant agreement. Approving any bid would be subject to a more detailed report, and as requested by Members would include details of any and all additional financial risks, such an arrangement may have to the Council.

At the request of a Member all recommendations with the exception of (d) were voted on together; a separate vote was taken for that recommendation.

Following which it was RESOLVED to:

(a)      Accept the out-turn position of £1,385k;

(b)      Note the contribution to the Valuation Volatility Reserve of £568k, as approved under urgent delegated authority by the Head of Paid Service in consultation with the Leader, the Deputy Leader and the Leader of the Opposition on 23 April 2020;

(c)      Approve the remaining £817k be transferred to the General Fund working balance;

(d)      Approve entering into a grant agreement with the office of the Police and Crime Commissioner for Lincolnshire for the delivery of CCTV upgrades funded by the Safer Streets Fund;

(e)      Approve a maximum capital budget of £428k as grant funding towards the Riverside Walk/Bowling Green Lane scheme funded from Section 106 monies;

(f)        Note:

(i)        the Section 137 expenditure statement for 2019/20, showing contributions made to certain charitable funds and not for profit bodies providing a public service in the UK;

(ii)       the Building Control Account for 2019/20, showing the deficit for the chargeable and non-chargeable work for the year;

(g)      accept the use of Earmarked Reserves approved by the Chief Finance Officer using delegated powers;

(h)      accept the final capital outturn position of £18,029k;

(i)        note the information in the report related to the Revenue Outturn Subjective Analysis;

(j)        note the content of the Regulation 62 of the Community Infrastructure Levy Regulations 2010 report for 2019/20;

(k)       due to Covid-19 financial impacts, a Revised Budget 2020/21 and a Mid-Year Review of the Medium Term Financial Plan be presented to the November meeting of this Committee.