Agenda item

Members gave consideration to a report which sets out the revenue, capital and treasury management activity from 1 April 2020 to 31st May 2020.  This was the first financial monitoring report of 20/21.

In presenting the report, Officers highlighted a number of points to Members’ attention.  In relation to the outturn position for ‘business as usual’ revenue budgets (excluding the impact of Covid-19) the forecast outturn position was a contribution to reserves of £444,000 which was mainly due to the net treasury management activity savings of £313,000 and forecast salary savings of £158,000.

The Covid-19 implications at 2.2.7 of the report detailed the forecast financial implications at a net cost of £1.684m, offset by £1.085m in LA Covid-19 Support and high street recovery grant from the Government, leaving a forecast shortfall of £599,000.

However, since publication of the report, a 3^rd tranche of support grant had been awarded to West Lindsey amounting to £163,000, reducing the forecast shortfall to £437,000.

This amended position would result in a net contribution to general fund balances of £7,000, bringing the general fund balance to £3.871m. 

Officers advised both the financial implications of Covid-19 and the business as usual forecast outturn would continue to be closely monitored and updated over the coming months, before a revised budget and a mid year review of the Medium Term Financial Plan would be presented to the Committee in November.

In relation to the Capital position, the forecast capital outturn position was a variance of £14.698m and Members were asked to approve the capital amendments contained within the report detailed at sections 3.1.2 to 3.1.5. The amendments included slippage of £12.834m into 21/22 for four schemes, overspend of £120,000 on three schemes, and an underspend of £1.984m on one scheme.     

The treasury management activities during the reporting period were contained within the report, with total investments at the end of the period being £13.49m, achieving an average interest rate of 1.173%.

Finally Members were asked to approve an amendment to the crematorium fees and charges detailed at section 2.3.3, namely to charge for an enhanced visual tribute service.

In the ensuing debate and in response to Members’ questions Officers advised that the “court costs” referred to on page 86 of the reports pack was as a result of the enforcement of council tax and other debt collection being suspended, the result being a loss of income to the Council.

With regard to the overspend related to the Market Rasen Leisure Centre, project, (page 79 of the reports pack) Members questioned how it was the Council’s responsibility to incur additional costs against already contracted projects, particularly in light of the reasoning comments contained within the report. 

In the absence of specific detail, the Chief Executive, indicated that in some cases it had been necessary, to ensure projects continued, to offer additional support in these extraordinary times, to some suppliers and contractors.  Whilst he did not know if this was the reason, in this case, or whether in the fact the case was that the commentary included against the overspend was not specific enough, he undertook to respond to all Members of the Committee with the specific details, in writing.

RESOLVED  that : -

(a)     the forecastout-turn position of a£444k net contribution to reserves as at 31^st May 2020 (see Section 2) be accepted;

(b)     the use of EarmarkedReserves during thequarter approvedbythe Chief Finance Officer using Delegated powers (2.4.1) and the contribution to Earmarked Reserves (2.4.2) be accepted;

(c)     the amendment to the fees and charges schedule for the Crematorium (2.3.3), be approved to be effective immediately; and

(d)     the Capital Budget amendments as detailed in section 3.1.2 to 3.1.5 of the report  be approved and the current projected Capital Outturn as detailed in 3.1.1 be accepted.