Members considered a report on the Budget and Treasury Management Monitoring for Period 4 2017/18.
The Finance and Business Support Manager introduced the report, highlighting the following points:
· The revenue outturn position at 31 March 2018 was £150,000 return to the general fund balance. Since that date, the accounts were closed and the actual return was £431,000; the difference of £281,000 was notified at the beginning of April as the Government had miscalculated the business rate relief grant.
· The capital outturn had resulted in £6.534 million being spent; there had been a request to carry forward £5.977 million, mainly for commercial investment;
· In terms of treasury management, an average interest rate of 1.25% had been achieved, that generated £263,000 of revenue income. There had been no external borrowing;
· It had previously been reported that there had been a breach of the counterparty limit. There followed a thorough investigation; the procedures were found to be robust;
· £384,000 of commercial income had been generated.
Following questions from Members, further information was provided;
· The function of Corporate Fraud now comes under the Finance directorate, and the fraud reports will come through the Governance and Audit Committee;
· There had been some health and safety issues with the Market Rasen depot. A portakabin forms the office and work area for staff; it was dangerous to have people and vehicles in the same space. There were only two years left on the lease; alongside the current depot, other facilities were being considered;
· The additional £500,000 being invested had no detriment on interest rates;
· The commercial income that the Council had generated was equivalent to a 9.9% Council Tax precept;
· Paragraph 1.2.2 on the former Lidl building was out of date and should not have been included in the report;
· West Lindsey District Council was able to lend to other councils in the form of short-term funding. They were AA rated investments;
· £3 million had been invested in a property bond with Churches, Communities and Local Authorities Investment Management (CCLA), which generated around 4.6%;
· The Debt Recovery Team had a process of chasing debts. Most of the debt related to housing benefit overpayments; the debt was not reducing swiftly, but it was being recovered. Services that had outstanding debts were proactively chasing them.
(1) Accept the draft out-turn position of a £150k net contribution to reserves as at 31 March 2018;
(2) Note the Revenue budget carry forwards of £806k approved in year;
(3) Agree that any further surplus variances be transferred to the Business Rates Volatility Reserve or General Fund Balance;
(4) Approve the 2017/18 use of Earmarked Reserves of £118,900;
(5) Note the 2017/18 use of Earmarked Reserves during the quarter approved by the Executive Director of Resources using delegated powers;
(6) Note the 2018/19 use of Earmarked Reserves approved by the Executive Director of Resources using delegated powers;
(7) Approve the Capital budget carry forwards of £6.010 million and accept the Capital out-turn position of £6.534 million;
(8) Accept the Commercial Income position;
(9) Approve the amendments to fees and charges detailed within Appendix C;
(10) Accept the Treasury Management and Prudential Indicators to 31 March 2018.