Agenda item

The report of the Director of Corporate Services, setting out the revenue, capital and treasury management activity from 1 April 2023 to 30 September 2023, was received and considered.

The Business Support Team Leader presented the report. In relation to revenue budgets, the forecast outturn position was a net contribution to reserves of £301,000, which was an increase of £244,000 from the forecast position reported at quarter one.

This was mainly due to the increase in interest received, as a result of the current base rate being higher than the peak expected, and there was also a forecast underspend on interest payable, resulting in a net increase in income of £234,000.

The outturn figure did not include the impact of the pay award as it had not been agreed at the time the report was written. However, on 1 November, agreement was reached, with £1,925 per annum to be applied to all JNC scale points, pro-rata for part time staff, and 3.5% for Chief Officer pay. The impact of the pay award resulted in an additional cost of £360,000, changing the  outturn position to a net use of reserves of £59,000. 

In regard to capital expenditure, schemes were reporting a net £5.736m underspend against the revised budget with Members asked to approve the revised capital budget of £18.441m, which included the amendments to the capital programme detailed at section 3.2.

The detailed capital monitoring table was included at Appendix 2.

Debate ensued and Members sought to understand why a number of forecasts had not been met. In responding, Officers advised that in respect of trade waste, some large customers had been lost.  With regard to the crematorium, the business case had been built around standard cremations. The increase in direct cremations, which could not have been predicted at the time, therefore had impacted the income generated from standard cremations.

Members sought to understand what sort of benchmarking was done around the crematorium fees. Given funerals were expensive and people would shop around if necessary.  Officers confirmed benchmarking was undertaken but of vital importance was cost recovery whilst remaining competitive.  Residents should not be subsidising commercial services.   The Section 151 Officer outlined the reviews which were being undertaken in this area, noting that a revised Business Plan was due to be submitted to the Committee.

In response to further questions, Members were advised that it was proposed to increase the Green Garden Waste charge, again to reflect increased costs of running the service, this matter was covered in greater detail in the fees and charges report.  Referencing the Government’s intention to introduce mandatory food waste collections, Officers outlined the preparatory work being undertaken to understand the associated costs and implementation plan.  Consideration was being given as to whether it would be more prudent to commence collections before they became mandatory, with the reasons for this outlined.  Members were advised that associated costs would likely be added to the capital programme from 2024.

Finally with regard to Scampton, Officers confirmed costs that had been incurred to date, both in terms of the judicial review work and the previous procurement of the development partner, were all included within budget monitoring reports. What was not reflected currently, was the uncertain potential future income that may or may not be received.  Officers continued to liaise with the Home Office regarding this matter and Members would be advised as soon as the position was known, as was advised to Council, earlier in the week, in response to a question under Rule 9.

RESOLVED that: -

REVENUE

(a)        the forecast out-turn position of a £0.301m net contribution to reserves as of 30 September 2023, Section 2 of the report, relating to revenue activity be accepted;

(b)        the use of Earmarked Reserves during the quarter approved by the Chief Finance Officer using Delegated powers (2.4.1) be accepted;

(c)        the contributions to Earmarked Reserves (Section 2.4.2). be accepted;

(d)        the amendments to the fees and charges schedules for 2023/2024 (2.3.2) be approved and recommended to Council that any new Fees and Charges be implemented;

CAPITAL

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

(f)         the adjustments to the Capital Budget as detailed in 3.2 be approved; 

(g)        the revised Capital Budget of £18.441m (section 3.1) be approved; and

TREASURY

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