Agenda item

The Committee considered the last of the finance reports on the agenda, hearing that the quarter three budget monitoring report for 2023/24 was based on the forecast outturn as of 31 December 2023. Members heard that in relation to revenue budgets, the forecast outturn position was a net contribution to reserves of £79,000, which was an increase of £138,000 from the forecast position reported to Members at quarter two. This was mainly due to the increase in interest receivable, as a result of the current base rate being higher than the peak expected when the budget was set, plus a forecast underspend on interest payable resulting in a net increase in income of £612,000.

The outturn figure now included the impact of the pay award as agreement was reached on 1 November 2023, with an average increase of 6.27% across all scale points, compared to the 2% allowed for within the budget for 2023/2024 plus a £200,000 contingency. Salary costs were £231,000 above the budget for the year, as the impact of the pay award had been offset by savings arising due to vacancies.

In relation to capital, schemes were reporting a net £6.832m underspend against the revised budget, £3.975m of which was requested as a carry forward into 2024/2025.

Members were asked to approve the revised capital budget of £11.609m which included the amendments to the capital programme detailed at section 3.2 of the report. The detailed capital monitoring table was also included at Appendix 2.

On opening the floor for comments, it was enquired as to why there was a carry forward amount for the Richmond House conservatory, when Members understood this scheme had been ceased. It was explained that there had been a recent meeting with Gainsborough Town Council to look at alternative improvement plans, therefore the carry forward was requested. Members were assured that, in the event of alternative plans, there would be a separate report to the Committee.

In relation to the savings made due to staff vacancies, assurance was sought that this was as a result of vacancies not being appointed to, rather than job roles simply not being re-advertised once vacant. It was confirmed that savings were as a result of roles not being appointed to, for example where there may be a delay between a person leaving the authority and a new person joining.

Having been proposed and seconded, it was unanimously

RESOLVED that

REVENUE

a)    the forecast out-turn position of a £0.079m net contribution to reserves as of 31 December 2023 (see Section 2) relating to revenue activity, be accepted; and

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

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

d)    the amendments to the fees and charges schedules for 2023/2024 (Section 2.3.2 and Appendix 7) 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; and

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

g)    the revised Capital Budget of £11.609m (3.1) be approved.

TREASURY

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