Issue - meetings

To consider a report of the Chief Executive agreed by Executive Cabinet on 3 August 2017 and requiring Council approval (enclosed). 

Councillor Peter Wilson, Executive Member for Resources presented a report of the Chief Executive on the provisional revenue and capital outturn figures for the Council as compared against the budgets and efficiency savings targets set for the 2017/18 financial year. The forecast was for an underspend of £321,000 against the existing revenue budget. The report had been considered at Executive Cabinet on 3 August and now required Council approval.

Councillor Alan Cullens praised the improvement works undertake at Cotswold House in recent years which he felt had transformed the facility. He asked for an update on the Market Walk Extension project and in response, the Executive Leader said there had been many communications with people acting on behalf of Marks and Spencer and he hoped the current minor obstacles could be overcome quickly. Negotiations were also ongoing with other tenants. The Executive Leader agreed to a request of Councillor Cullens that a meeting of the Market Walk Steering Committee be held, if no agreement is in place by 29 September 2017.

Councillor Peter Wilson, Executive Member for Resources proposed, Councillor Alistair Bradley, Executive Leader seconded and it was RESOLVED –

That approval be given for the contribution of £259,000 from in-year revenue underspends to General Balances in 2017/18 to put the Council on target to achieving the goal of increasing general fund balances to £4m, achieving it one year earlier than set out in the Medium Term Financial Strategy. This would therefore replace the proposed budgeted contribution to balances in 2018/19 as previously detailed in the Medium Term Financial Strategy and also help reduce the budget deficit in 2018/19.

Report of Chief Executive. 

1.         The full year forecast position for the 2017/18 revenue budget and capital investment programme were noted.

2.         The forecast position on the Council's reserves was noted.

3.         To request Council approval for the contribution of £259,000 from in-year revenue underspends to General Balances in 2017/18.  This will put the Council on target to achieving the goal of increasing general fund balances to £4m, and will achieve this one year earlier than set out in the Medium Term Financial Strategy. This would therefore replace the proposed budgeted contribution to balances in 2018/19 as previously detailed in the Medium Term Financial Strategy and also help reduce the budget deficit in 2018/19.

4.         To request Council note the capital programme to be delivered in 2017/18 to 2019/20.

The Executive Member for Resources presented the report of the Chief Executive which set out the provisional revenue and capital outturn figures for the Council as compared against the budgets and efficiency savings targets set for the financial year 2017/18.

The Council’s Medium Term Financial Strategy proposed that working balances were to reach £4.0m over the 3 year lifespan of the MTFS to 2018/19 due to the financial risks facing the Council.  A budgeted contribution into General Balances of £500k was contained within the budget for 2017/18.  The current forecast to the end of June shows that the General Fund balance could be around £3.75m by the end of the financial year.  The additional in-year contribution to general balances of £259,000 will increase the year-end forecast to £4m and be on target to achieve £4m a year early.

The Council recently implemented the introduction of the new subscription based garden waste collection service.  A cautious approach was taken in setting the initial budget to determine the level of estimated income this service would generate and an estimated participation rate of 40% was used in calculating the annual net income of £400,000.  The scheme has proved to be hugely successful with the actual take-up closer to 55%, generating income of around £684,000 for the full year subscription.

Members noted that the Council’s capital contribution to Chorley Youth Zone would be part-funded through a £1.1m contribution from LCC, although this has not yet been received.

Decision

1.         Approval granted that the full year forecast position for the 2017/18 revenue budget and capital investment programme be noted.

2.         Approval granted the forecast position on the Council's reserves be noted.

3.         To request Council approval for the contribution of £259,000 from in-year revenue underspends to General Balances in 2017/18.  This will put the Council on target to achieving the goal of increasing general fund balances to £4m, and will achieve this one year earlier than set out in the Medium Term Financial Strategy. This would therefore replace the proposed budgeted contribution to balances in 2018/19 as previously detailed in the Medium Term Financial Strategy and also help reduce the budget deficit in 2018/19.

4.         To request Council note the capital programme to be delivered in 2017/18 to 2019/20.

Reasons for recommendation(s)

To ensure the Council’s budgetary targets are achieved.

Alternative options considered and rejected

None.