Agenda item

Members heard from the Business Support Team Leader regarding Budget and Treasury Monitoring for period 1 2021/2022. The purpose of the report was to set out the revenue, capital and treasury management activity from 1 April 2021 to 31 May 2021. The contents of the report were summarised as follows:

REVENUE

·         ‘Business as Usual’ Revenue Forecast Out-Turn (after carry forwards) - Deficit £0.005m. (-0.04% of Net Revenue Budget)

·         There was no forecast pressure above Covid-19 Support Grants from Government and contingency funds held within Earmarked Reserves at this time

CAPITAL

·         Capital Forecast Out-Turn £11.118m, a variance of £3.234m against current budget £14.352m, this was made up of:

·         Anticipated Slippage into 2022/2023 of £3.364m

·         There was a request to increase the budget for the Disabled Facilities Fund by £0.094m. This was due to additional grant funding which was received in March 2021.

·         £0.036m Budget was requested for Member Laptop refresh – the budget was to be funded from the revenue Covid Expenditure Support Grant. This was to ensure that Members had equipment which was fit for purpose, and supported remote working. There were associated revenue costs of £0.022m, which would also be met from the revenue Covid Expenditure Support Grant. Total cost £0.058m.

·         Members were also asked to approve a capital budget of £0.1m funded by Section 106 monies for renovation of empty homes in Gainsborough and approve an initial spend of £0.02m for the renovation of the first two homes.

TREASURY MANAGEMENT

·         Treasury Management Report and monitoring:

o   Average investment interest rate for April to May was 0.86%.

o   Total Investments at the end of Quarter 1 was £16.376m.Total Prudential Borrowing at 31.05.2021

38,832

The Chairman thanked the Officer and invited comments from the Committee. There was significant discussion regarding the intended use of S106 monies and it was stated that Officers had not consulted with Members regarding the intended use nor had the decision been made in any other forum. It was noted that a S106 report was due at the Committee in September however the use of S106 monies was separate to the arrangement with P3 for affordable housing.

There was also significant discussion regarding the capital in relation to a Member Laptop refresh. There was consternation that there had been no consultation with Members and the decision had not been discussed or made in any other forum. A Member of the Committee enquired as to the input of the working group and whether it was still in place. It was explained that the impact of the pandemic on working practices had highlighted a need for alternative device provision for Members and the capital mentioned in the report was on the basis of making provision to issue Members with a second device, should it be required. It would not impact the 2023 refresh and the Member working group would continue to be involved in Member IT testing and suchlike. There would be full consultation with all Members in relation to the 2023 refresh.

There was continued discussion regarding the use of S106 monies as well as Member IT options and, having been proposed and seconded, the Chairman brought discussions to a close to take the vote. The recommendations were taken separately and it was

RESOLVED that:

REVENUE

a)    the forecast out-turn position of a £0.005m net deficit as at 31st May 2021 (see Section 2) relating to business as usual activity be accepted

b)    the use of Earmarked Reserves (2.4.1) be approved

c)    the use of Earmarked Reserves during the quarter approved by the Chief Finance Officer using Delegated powers (2.4.2) be accepted

d)    the addition to the statutory fees and charges schedule for Planning Applications (2.3.2) be accepted.

CAPITAL

e)    the current projected Capital Outturn as detailed in 3.1.1 be accepted

f)     the capital budget carry forwards of £3.364m detailed at 3.1.2 be approved

g)    a capital budget of £0.1m for renovation of empty homes in Gainsborough and an initial spend of £0.02m for the renovation of the first two homes, detailed at 3.1.2, be approved.

TREASURY

h)    the report, the treasury activity and the prudential indicators, be accepted.