Agenda item

Members gave consideration to a report presented by the Business Support Team Leader, who explained it detailed the final budget and treasury outturn position for 2024/25, subject to the audit of the statement of accounts. In summary, it was explained that against revenue budgets, there was a net contribution to reserves of £1.126m. The variance against service budgets was virtually breaking even with a small underspend of £6,000, which demonstrated excellent budget management on behalf of budget managers and their teams. The significant variance of £1.12 million arose from corporate budgets including:

 

•              Net interest on investments (an increase in income of £504,000)

•              Corporate contingency budgets not required (a saving of £325,000)

•              And Government grants received in the final quarter (total income of £291,000)

 

Members were being asked to approve the allocation of the surplus to reserves as follows:

 

•              £250,000 to an earmarked reserve to support the new capital assets created from grant funded schemes

•              £50,000 to the Neighbourhood Planning reserve

•              the balance of £826,000 to the Business Rates Volatility Reserve – which may be applied to reduce the forecast funding deficit in 2026/27 (with the gap currently estimated at £1.245m)

 

In relation to capital Members heard there was a variance against revised budget of £5.563m. Of this £4.789m was requested for carry forward into 2025/2026 (the largest being £1.788m for HUG Phase 2 with final payments due to be made in 25/26). The balance of £0.774m being net underspends on scheme budgets.

 

In addition to the allocation of the revenue surplus, there were several recommendations for Member approval, those being: the total use of reserves of £0.380m which included RAF Scampton legal costs (as previously agreed by the committee) and revenue costs for the cinema project; the contribution to reserves of £0.639m being the balance of grants received during the year with no conditions to repay, and return of match funding for UKSPF projects; the spend of the revenue budget carry forward of £35,000 for the extension of LUF resources for 3 months; the amendments to the 2025/26 fees and charges schedule for land charges search fees which were set by Lincolnshire County Council,  and statutory private water supply work to reflect amended regulations; and to approve the amendments to the capital schemes contained within the report at section 3.2.

 

Members thanked the Officer for her concise summary and the clarity of the information contained within the report. In response to a question regarding the Scampton costs, it was confirmed that the Committee would continue to receive updates through the quarterly reports and as and when final figures were available these would be shared with Members. It was also clarified that the introduction of the big bin hire was considered to be additional income and therefore not included in the commercial waste deficit details.

 

A Member of the Committee enquired as to whether monies had been required to be returned to government under the capital schemes referenced within the repot. It was confirmed that where there were underspends in capital schemes, that money was required to be repaid. Further detail was provided by the Communities Manager who explained that regarding the Safer Streets scheme, there had been a partner who had pulled out of a CCTV installation project meaning the council had needed to find alternative ways to spend the allocated monies, hence there being a small underspend which was repaid. Assurance was provided that Officers worked proactively to ensure funds could be redistributed.

 

The Chairman invited comments from Visiting Member Councillor J. McGhee who enquired of the Committee to consider an amendment for the use of the reserves funds to include an amount for options to install a ‘changing places’ facility. It was recognised this had been discussed and raised previously, however it was considered by the Visiting Member to be a key part of the tourism economy, to be able to provide facilities for all. She highlighted this would extend the scope of attracting visitors to the area and was in line with current strategies.

 

Members of the Committee welcomed the input from the Visiting Member and supported the introduction of accessible facilities, such as ‘changing places’ and shop mobility schemes. It was highlighted there had been a review previously undertaken which had considered options for such a facility as was being suggested. A Member of the Committee stated his support and proposed an amendment to recommendation (b) contained within the report, that:

 

an amount of money be held in reserve for installing a ‘changing places’ facility in Gainsborough.

 

A Member of the Committee, in seeking further clarity regarding the amendment requested whether the options were to be district wide or Gainsborough focussed, with concerns raised as to whether it was prudent to specify only one area of the district.

 

There was a second proposal made that:

 

an amount of money be held in reserve, subject to a district wide options paper being presented to the Committee, for the installation of a ‘changing places’ facility.

 

In response, it was explained that a high level feasibility study had previously been undertaken and it would be possible for Officers to provide the Committee with an updated options report, which would cover areas of the district outside of Gainsborough, including updated quotations, requirements and technical specifications, and how to undertake engagement and consultation with experts, service users, and town and parish councils. It was also confirmed by the S151 Officer that the reserve amount specified for the Business Rates Volatility Reserve would be reduced to enable the amendment, and that, based on previous studies, an amount of £100,000 would be prudent for the work suggested.

 

On the basis of the Officer responses, the second proposer altered his proposal to reflect the detail clarified by Officers.

 

The Democratic Services Officer clarified for the Committee that there were two amendments on the table, summarising the first being to look at options for a facility in Gainsborough, the second being to look at options for a facility in West Lindsey. It was also confirmed that neither proposal had been seconded.

 

Expressing support for the amendment to consider district wide options, a Member of the Committee duly seconded the second proposal. With no seconder for the first proposal, that fell, and the Chairman took the vote. It was

 

RESOLVED that recommendation (b) be amended to include the following, noting this would also amend the amount of funds for the Business Rates Volatility Reserve:

 

Up to £0.1m to a reserve to consider options for a ‘changing places’ facility within West Lindsey, with Officers requested to present a report to a future meeting of the Corporate Policy & Resources Committee detailing updated quotations, requirements and technical specifications, and how to undertake engagement and consultation with experts, service users, and town and parish councils.

 

With no further comments or questions, and with repeated thanks to the Finance Team as a whole and the Business Support Team Leader specifically, the written recommendations, including the amendment as detailed above, were duly proposed and seconded. On taking the vote it was

 

            RESOLVED that

 

REVENUE

 

a)    Members of the Committee accept the out-turn position of a £2.057m gross contribution to reserves against the revised budget for 2024/2025, which includes £0.931m of approved revenue carry forwards into 2025/2026. The remaining balance being a net underspend and contribution to reserves of £1.126m.

 

b)    Members of the Committee approve the balance of £1.126m be transferred as follows:

·         £0.250m to an earmarked reserve for Public Realm Works

·         £0.050m to the Neighbourhood Planning Reserve

·         Up to £0.1m to a reserve to consider options for a ‘changing places’ facility within West Lindsey, with Officers requested to present a report to a future meeting of the Corporate Policy & Resources Committee detailing updated quotations, requirements and technical specifications, and how to undertake engagement and consultation with experts, service users, and town and parish councils.

·         £0.726m to the Business Rates Volatility Reserve

 

c)    Members of the Committee approve the use of Earmarked Reserves - £0.380m (2.4.1).

 

d)    The Committee accepts the use of Earmarked Reserves approved by the Chief Finance Officer using Delegated powers (2.4.2).

 

e)    Members of the Committee approve the contributions to Earmarked Reserves - £0.639m (2.4.3)

 

f)     The Committee accepts the contributions to Earmarked Reserves approved by the Chief Finance Officer using Delegated powers (Section 2.4.4).

 

g)    Members approve the spend of the revenue carry forward into 2025/2026 for the extension of LUF resources £0.035m (2.5 and Appendix 8).

 

h)    The Committee approves the amendments to the fees and charges schedules for 2025/2026 (2.3.2).

 

CAPITAL

 

i)     The Committee accepts the final Capital Outturn position of £17.398m (Section 3).

 

j)     Committee approves the amendments to the Capital Schemes 2024/2025 as detailed in 3.2.1 to 3.2.2, and the amendments to the 2025/2026 Capital Schemes as detailed in 3.2.3.

 

TREASURY

 

k)    The Committee accepts the report, the treasury activity and the prudential indicators (Section 4).