To provide information on the Quarter 3 (to 31 December 2021) financial position of the Council (report of the Portfolio Holder for Finance, Commercialisation and Partnerships and the Deputy Chief Executive (Corporate Development) and S151 Officer enclosed).
Consideration was given to the report of the Portfolio Holder for Finance, Commercialisation and Partnerships and the Deputy Chief Executive (Corporate Development) (S151 Officer), which provided information on the Quarter 3 (to 31 December 2021) financial position of the Council.
The Portfolio Holder for Finance, Commercialisation and Partnerships provided the following summary:
· The Q3 Forecast Outturn 2021/22 presented the forecast outturn position as at 31stDecember 2021 for this financial year and was based on the information known at the time.
· General Fund - The full year forecast outturn based on current projections and assumptions was an overspend of £191,000 in the General Fund, which included the balances of unachieved efficiency savings of £397,000. The forecast outturn position by Directorate was detailed at Appendix A – Table 1, together with an analysis of service variations. The 2021/22 budget included an efficiency savings target of £1.676 million, savings achieved so far were £1.279 million. Details of these savings were listed in Appendix A table 2a.
· Reserves (GF and HRA) - General Fund Specific Reserves were forecasting a decrease of £0.311 million from £13.493 million to £13.182 million - further details were set out in Appendix A - Table 3. In addition, the General Fund Reserve Balance remained at £2.078 million. The HRA General Reserve balance was forecasting an overall increase of £0.846 million from £27.384 million to £28.230 million. More details were provided at Appendix A – Table 3.
· HRA - The HRA was forecasting a surplus of £1.663 million, and further detail was provided at Appendix A - Table 4.
o General Fund - Revisions totalling £0.922 million were recommended for approval, as detailed in Appendix A Table 5, giving a revised 2021/22 programme of £8.390 million. The total budget carry forward due to slippage on the General Fund Capital Programme of £3.747 million was detailed on Appendix A – Table 8was recommended for approval.
o HRA - The total revised HRA Capital Programme for 2021/22 was £14.984 million as detailed in Appendix A Table 10. The total budget carry forward due to slippage on the HRA Capital Programme of £9.281 million as detailed on Appendix A – Table 12was recommended for approval.
· Treasury Management - Appendix A - Section 2.5 provided details of the Council Treasury Investments. As at 31 December 2021, a total of £48.376 million investments were held by the Council. Appendix A Table 13 provided more information on the investments. The forecast income from investment interest had been calculated at £194,000, as per budget.
· Debt Collection - Section 2.6 showed the analysis of sundry debts the Council held as at 31st December 2021.
· Council Tax & Business Rates - Section 2.7
o Council Tax - Collectable debit for 2021/22 was £54.4 million. As at December 2021, collection rate was 83.55% (83.80% at 31 December 2020)
o Business Rates - Collectable debit for 2021/22 was £24.1million. As at December 2021, collection rate was 81.59% (77.99% as at 31 December 2020)
It was noted that the Revised Budget 2022/23 figure for Crease Drove Industrial Units (Appendix A, Table 8) should read £1.350 million.
That the report and Appendix A be
2) That the estimated position with regard to the approved contributions to and use of reserves be noted.
That the General Fund and Housing Revenue Account
Capital programme be noted as set out in table 5, 6, 9
and 10 of Appendix A.
RECOMMENDATION TO COUNCIL:
4) To approve the necessary budget carry forwards for the General Fund and Housing Revenue Account Capital programme as detailed in table 8 and 12 of Appendix A.
5) To approve virements (internal transfers) up to the value of £1.676 m to reflect the efficiency savings which currently are still in service areas and due to be offset against the budget for efficiency savings.
(Other options considered:
· Do nothing.
Reasons for decision:
· To provide timely information to Members on the overall financial position of the Council.)