Issue - meetings

To receive and consider the report of the Statutory Finance Officer. 

The Executive Member (Resources), Councillor Peter Wilson, presented the Provisional Revenue and Capital Outturn for 2017/18 which had been agreed by the Executive Cabinet on 21 June. The report requires full Council approval for a number of recommendations.

Members considered the recommendations in relation to in-year revenue underspends to the Change Management Reserve, the Asset Maintenance Reserve and the Business Rates Retention Equalisation Reserve.  The financing of the 2017/18 capital programme to maximise the use of funding resources available to the Council was highlighted.

Councillor Bradley noted that in the 2017/18 budget the expected net income from Market Walk, after deducting financing costs, is £0.998m.

The Executive Member (Resources), Councillor Peter Wilson proposed and the Executive Leader, Councillor Alistair Bradley seconded the Decision – that approval be given to the following:

1.         To note the full year outturn position for the 2017/18 revenue budget and capital investment programme.

2.         To note the use of the £2.2m Southport Road capital receipt, as outlined in paragraph 34, to pay off the borrowing used to fund assets with short useful lives and instead use prudential borrowing to fund the purchase of the Oak House. The outcome being a £176k saving to the council’s revenue budget.

3.         To note Executive Cabinet approval for slippage requests outlined in Appendix 2 of the report to finance expenditure on specific items or projects in 2018/19.

4.         For the contribution of £300,000 from in-year revenue underspends to the Change Management Reserve to finance one-off redundancy and pension strain costs arising from transformation and shared service strategies.

5.         For the contribution of £100,000 from in-year revenue underspends to the Asset Maintenance Reserve to finance one-off costs relating to the Council’s maintenance of offices and buildings.

6.         For the contribution of £156,835 from in-year revenue underspends to the Business Rates Retention Equalisation Reserve.

7.         To note the 2017/18 outturn position on the Council's reserves outlined in Appendix 4.

8.         To note the impact of the final capital expenditure outturn and the re-phasing of capital budgets to 2018/19 and approve the additions to the capital programme outlined in paragraph 72.

9.         For the financing of the 2017/18 capital programme to maximise the use of funding resources available to the Council.

To receive and consider the report of the Statutory Finance Officer. 

1.         To note the full year outturn position for the 2017/18 revenue budget and capital investment programme.

2.         To note the use of the £2.2m Southport Road capital receipt, as outlined in paragraph 34, to pay off the borrowing used to fund assets with short useful lives and instead use prudential borrowing to fund the purchase of the Oak House. The outcome being a £176k saving to the council’s revenue budget.

3.         To approve slippage requests outlined in Appendix 2 of the report to finance expenditure on specific items or projects in 2018/19.

4.         Request Council approval for the contribution of £300,000 from in-year revenue underspends to the Change Management Reserve to finance one-off redundancy and pension strain costs arising from transformation and shared service strategies.

5.         Request Council approval for the contribution of £100,000 from in-year revenue underspends to the Asset Maintenance Reserve to finance one-off costs relating to the Council’s maintenance of offices and buildings.

6.         Request Council approval for the contribution of £156,835 from in-year revenue underspends to the Business Rates Retention Equalisation Reserve.

7.         To note the 2017/18 outturn position on the Council's reserves outlined in Appendix 4.

8.         To note the impact of the final capital expenditure outturn and the re-phasing of capital budgets to 2018/19 and approve the additions to the capital programme outlined in paragraph 72.

9.         Request Council approval of the financing of the 2017/18 capital programme to maximise the use of funding resources available to the Council.

Gary Hall, Chief Executive, presented his report as Chief Finance Officer.  The report presents the provisional revenue outturn figures for the Council as compared against the budgets and efficiency savings targets set for the financial year 2017/18 and the provisional outturn figures for the 2017/18 capital programme.  It also updates the capital programme for financial years 2018/19 to 2020/21 to take account of the re-phasing of expenditure from 2017/18 and other proposed budget changes.

The accounts are provisional at this stage and are also subject to final checking and scrutiny by the Council’s external auditor.  Should there be any significant changes to the outturn as a result of this process a further report will be submitted to Executive Cabinet.

There is a provisional underspend against the budget at year-end of £715k prior to requests for slippage of committed items of £105k.

£176k of underspend relates to the use of a £2.2m capital receipt the council received from the sale of land at Southport Rd.  Rather than use this receipt to meet the cost of the purchase of the Oak House site, the council used the receipt to pay off the borrowing used to fund other assets with shorter useful lives such as vehicles and bins.  The council will use borrowing to fund the purchase of Oak House and spread the cost over the life of this asset.  The net result of using the receipt in this manner meant a reduction in the cost of borrowing in 2017/18 of £176k.  The total cost of borrowing for the council remains the same, borrowing will instead be spread over a longer period.

Members noted the requests from underspends in relation to the Change Management Reserve, the Asset Maintenance Reserve and the Business Rates Retention Reserve.  

Decision:

1.         To note the full year outturn position for the 2017/18 revenue budget and capital investment programme.

2.         To note the use of the £2.2m Southport Road capital receipt, as outlined in paragraph 34, to pay off the borrowing used to fund assets with short useful lives and instead use prudential borrowing to fund the purchase of the Oak House. The outcome being a £176k saving to the council’s revenue budget.

3.         To approve slippage requests outlined in Appendix 2 of the report to finance expenditure on specific items or projects in 2018/19.

4.         Request Council approval for the contribution of £300,000 from in-year revenue underspends to the Change Management Reserve to finance one-off redundancy and pension strain costs arising from transformation and shared service strategies.

5.         Request Council approval for the contribution of £100,000 from in-year revenue underspends to the Asset Maintenance Reserve to finance one-off costs relating to the Council’s maintenance of offices and buildings.

6.         Request Council approval for the contribution of £156,835 from in-year revenue underspends to the Business Rates Retention Equalisation Reserve.

7.         To note the 2017/18 outturn position on the Council's reserves outlined in Appendix 4.

8.         To note the impact of the final capital expenditure outturn and the re-phasing of  ...  view the full minutes text for item 34