Issue - meetings

Report by Leader and Executive Team (attached).

The Executive considered a report by the Leader and Executive Team (circulated previously), the options and/or alternatives and other relevant facts set out in the report regarding  the Performance and Financial Management report for Quarter 3 of 2018/19.

The Accountancy Services Manager highlighted the following:

·         As at 31st December 2018, the latest forecast net expenditure was £12.239m, which was £0.019m over budget.  Details were shown in Appendix 1 and it was anticipated that the small variance could be reduced further throughout the remainder of the financial year.

·         The original budget for 2018/19 included a forecast to achieve £0.200m worth of salary vacancy savings. The current position forecasts this would be exceeded and vacancy savings of £0.225m would be achieved.

·         The “Recycle more” service changes were introduced on the 5^th June 2017; the take up of the new garden waste service had exceeded expectations, 2017/18 saw a total sign up of 17,320. This year’s income was expected to exceed last year’s total by 570 properties.

·         Within the overall £0.019m net budget deficit there were various cost pressures and one-off savings.  The budget pressures seen within waste and recycling service had not increased any further at the quarter 3 forecast. There had been a significant reduction in the forecast planning fee income of £0.159m due to a reduction in the larger applications received, which was in line with other authorities experiencing the same pressure. However it was forecast there would be additional Business Rates Retention income of £0.200m over and above the budgeted £1.252m Business Rates growth which had resulted in maintaining the net budget deficit at a similar level reported at quarter 2.

·         The Business Rate retention scheme was introduced in April 2013 which sees Billing authorities receive a ‘baseline’ funding but in addition they are exposed to the risks and rewards of retaining a proportion of the income collected.  This exposure was mitigated by participation in the Devon-wide pool that collates all of the Business Rate growth and decline and returns a share of the impact to each local authority. There had been an estimated one-off additional income from the 100% Business Rates Retention pilot for 2018/19 of £0.750m; this additional income had been earmarked into reserves as detailed in paragraph 4.1.6 of the report to help fund future projects.

·         At the 31^st December 2018 the total external borrowing was £1.250m.

·         The recommended level of general fund balance is 5%-10% of the council’s net revenue budget (£0.611m to £1.222m). The forecast general fund reserve at 31 March 2019 is £1.161m, which is a level of 9.5%.

·         “Appendix-2 Movement in Reserves & Balances” detailed the movements to and from earmarked reserves in 2018/19.

·         “Appendix-3 Executive Contingency Reserve” detailed the Executive Contingency Reserve movements and commitments. 

·         “Appendix-4 Capital Programme” detailed the 2018/19 to 2020/21 Capital Programme.  The Programme of £12.842m was funded by Capital Receipts (£2.349m), External Grants and Contributions (£8.964m) and Reserves (£1.529m).

·         Variations of (£2.254m) proposed to the 2018/19 Capital Programme as detailed in paragraph 4.4.3 of the  ...  view the full minutes text for item 100