Agenda item

Members considered a report on the Revenue, Capital and Treasury Management Monitoring for period four. The Strategic Finance and Business Support Manager highlighted the key points of the report. The draft revenue forecast out-turn position for 2018/2019 was reflecting a net contribution to reserves of £634k as at 31 March 2019 with approved carry forwards of £919k. She explained that £263k of the forecast contribution to reserves related to the net Treasury Management activity on investment and borrowing interest. The capital out-turn position for 2018/19 was £21,079k, with carry forwards of £8,893k requested for approval. The Committee heard that in February 2019 the Council externally borrowed £2,500k for 25 years from the Public Works Loans Board (PWLB) at an interest rate of 2.53%. This took the external borrowing level to £11,000k. It was noted that there had been no breaches of Treasury or Prudential Indicators within the period of this report. Average investments for the Quarter (Jan-Mar) was £15.493m which achieved an average rate of interest of 1.592% in Quarter 4 (1.757% Oct-Dec).

Members heard that there were two items to report, firstly, that it was requested to introduce a 24hour parking charge at the Roseway carpark for customers of the Travelodge, this would be set at £6.50. Secondly, the 2019/20 update for Capital schemes requested approval of up to £82k for the 3 year extension and enhancement to the Income Management System, which would be funded from the Project Investment Reserve.

There was significant discussion regarding parking charges and that there appeared to be a downward trend in the income from parking. This was identified as partly a result of the old Lidl site having been unoccupied and the transition of customers using the carpark at the new Lidl site. There was however an increased number of parking spaces in the Roseway carpark and the parking strategy would be looking at all options for maximising parking income.

There was further discussion regarding the introduction of a 24hour parking charge for people staying at the Travelodge. It was explained that this was at the request of the hotel as their guests had found issues with the previous parking arrangements. The practical implications of this new charge were discussed at length, including changes to the set-up of the ticket machine and how the 24hour period would be enforced. It was acknowledged that the suggestion to charge had come from the hotel and was designed to help them accommodate their guests. A Member of Committee also enquired about the use of parking permits and whether there were options for increasing the sale of permits, the Executive Director of Resources explained that the current permit price provided a 40% reduction compared with standard rates and the limit for applying for a permit had now been lifted. However, costs and income were reviewed annually and changes could be implemented if necessary.

There was one further comment from a Member of Committee who suggested that, given the increase in fuel prices and the unpredictability of these costs, it may be time for the Council to consider alternative methods of fuelling their fleet. He gave the examples of the zero emission buses in London and believed that similar green vehicles would soon be seen in cities closer to home. It was agreed that there was significant development in the field of cleaner vehicles with increasing options available for transport.

With no further comments from Members, the recommendations in the report were moved and seconded and it was

            RESOLVED that:

1)    Members accept the forecast out-turn position of a £634k net contribution to reserves as at 31 March 2019, as at section 2 and approve the final out-turn surplus be transferred to the General Fund Balance;

2)    Members accept the Revenue budget carry forwards of £919k approved in year (Appendix A);

3)    Members approve a new Car Park fee of £6.50 (incl. VAT) for 24 hours, specifically for users of the Travelodge (2.4.3);

4)    Members accept the use of Earmarked Reserves during the quarter approved by the Executive Director of Resources using Delegated powers (2.5.1);

5)    Members accept the Commercial Income position (2.3);

6)    Members approve the Capital budget carry forwards of £8,939k (3.1.4) and they accept the final Capital out-turn position of 21,079k;

7)    Members approve new Capital Budgets for 2019/20 (Income Management System £82k and £100k for Market Rasen Leisure Centre construction contingency). (3.3);

8)    Members accept the Treasury Management and Prudential Indicators to 31 March 2019.