Agenda item

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·         Paragraph 1.2.2 on the former Lidl building was out of date and should not have been included in the report;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.

RESOLVED to:

(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.