Agenda item

The report was introduced by the Financial Services Manager and set out the revenue, capital and treasury management activity from April 2015 to 31 March 2016.  The current surplus totalled £1,214.9k, however after taking account of grants which had not been fully expended (£201.8k) and previously approved carry forwards (£287.8k), the reported surplus was £725.3k.  This was comparable to the Q3 estimated forecast position of £797k.  However year-end accounting transactions had yet to be finalised.

Of the remaining surplus of £725.3k a further £176.3k had been approved by the Corporate Leadership Team as legitimate carry forwards requested by Business Units, these were detailed within the report at Appendix A.  After carry-forwards, the final surplus would be £549.0k.

It was proposed that from this surplus the following Earmarked Reserves be created;              

·    £108.0k to finance  a  new three year Councillor Initiative Fund

·    £60.0k Neighbourhood Planning – funding  for resources to support this function

·    £43.8k to Earmark LDO funding to support delivery of the Housing Zone

The remaining balance, of £337.2k to be returned to the General Fund, £109k of which replenished the use of the reserve to balance the 2016/17 budget.

It was proposed that the Business Improvement and Transformation Budget and Invest to Earn budget be replenished to a value of £150k from their respective reserves.

With regard to the 2015/16 Capital Programme the request to carry forward underspent budget due to slippage/multi-year schemes totalled £1,468.5k.  The Treasury Management activities during the reporting period were disclosed in the body of the report.

There had been no breaches of Treasury or Prudential Indicators to report and the Council again out-performed its benchmark in relation to investment yields.  With regard to the Capital Budget 2016/17 a further £378k was requested for a number of schemes, the funding of which was detailed within the report.

After initial publication of the report, an amended version was circulated with an additional appendix regarding the installation of a Multi-Use Games Area and outdoor fitness equipment on land in the Park Springs area of Gainsborough, and the report subsequently included an additional recommendation “That Members approve the incurring of expenditure for Capital Investment”.  Following the receipt of further information it transpired that this was not necessary, therefore that recommendation was withdrawn.

Members of the Committee welcomed the resource allocation for the Councillor Initiative Fund, and sought clarification on the criteria for allocation of spending.  It was agreed that any structure should avoid a bottleneck at the end of the period, and noted that Councillors should be aware that receipt of this funding could restrict the award of funding from other sources, particularly for large projects.  Scrutiny call-in applies to decisions by this Committee and therefore Members were reminded that funds could not be accessed until the period of call-in had expired.

Collection rates were noted as good, as in previous years, however questions were asked about the type and age of some of the outstanding debts.  Assurance was given that old debts were still pursued where possible, even after being written off.  Members requested that they be able to see an example of letters sent to pursue debts.

The earmarking of funding for specific projects was welcomed, however lengthy discussion took place regarding the replacement chairs which were proposed.  Members felt that the existing furniture had not lasted long enough, and that the current replacement quote was too high.  Clarification was given that the quote was the upper end, and alternatives were being sought.

Acknowledgement was made of current pressures within Enforcement and it was suggested that surplus resource could be directed to alleviate some of the strain.

Note was also made of the promotion of Building Control, the savings proposed to be achieved over time with Land Charges, and the costs of Planning Appeals (which it was noted that should not deter Members from refusing applications for development which they felt to be inappropriate, and for which training was provided to understand the impact of such decisions). 

It was moved and seconded that the recommendations be approved, and on being voted upon it was:

RESOLVED that:

a)    the forecast out-turn position as at 31 March 2016 be accepted;

b)    it be recognised that grants not fully expended during 2015/16 are required for spend during 2016/17 of £96.8k;

c)    the Revenue budget carry forwards of £464.1k (at Appendix A) be approved;

d)    the creation of new Earmarked Reserves from the forecast surplus in 2016/17 to the value of £211.8k be approved;

e)    the Capital budget carry forwards of £1,468.5k be approved;

f)     the Treasury Management Report and Treasury position to 31 March 2016 be accepted;

g)    the use of Earmarked Reserves for 2016/17 of £66k be approved;

h)    the use of Earmarked Reserves for 2016/17 approved by the Director of Resources using Delegated Powers be noted;

i)       the amendments to the 2016/17 Capital Programme be approved; and

j)       approval be given to spend Capital budgets.