Report by the Director of Resources and Deputy Chief Executive to the Strategy and Resources Committee on 6 February 2024 (attached).

Council considered a report by the Director of Resources and Deputy Chief Executive on the Performance and Financial Management report for quarter 3 of 2023-24 to the Strategy and Resources Committee on 6 February 2024 (circulated previously).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Performance and Financial Management for Quarter 3 of 2023/24 together with Minute Extract of Strategy and Resources on 5th February 2024 (circulated previously).

The Finance Manager highlighted the following:

·       The revenue budget for 2023/24 was approved at Council on 22nd February 2023 at £14,766,450.

·       As at 31st December 2023, the latest forecast net budget was £14,693,450, which produces a budget surplus of £73,000. Details were shown in “Appendix A – Variations in the Revenue Budget”.

·       The original budget for 2023/24 included a forecast to achieve £250,000 worth of salary vacancy savings. The current position forecasts the Council would achieve £296,000 based on known vacancies to date.

·       The National pay award negotiations for 2023/24 had been settled and was paid to staff in Novembers’ salary, backdated to 1 April 2023. The pay award worked out to be an average of 6.7%, the original budget included 4%, and the additional costs of £436,000 had been funded from the Budget Management reserve.

·       As at 31st December it was now estimated income growth from Business Rates to be an additional £950,000, it was proposed to place the £950,000 into the following earmarked reserves:

Ø  Collection Fund reserve £450,000.

Ø  Budget Management reserve £150,000.

Ø  Town Centre Management reserve £200,000.

Ø  Treasury Management reserve £150,000.

·       As at 1st April 2023 the Collection Fund reserve balance held was £1,340,177. This earmarked reserve was created to deal with the timing impacts of the Collection Fund (Business Rates), which ensured the revenue budget was not unduly affected in the year the taxes were collected. Collection Fund deficits/surpluses were reversed out to bring the revenue account back to the budgeted figure for the year; the deficits/surpluses were recovered/distributed in the following financial years. This reserve included a £912,563 balance that would be utilised in 2023/24 and 2024/25 to mitigate timing differences of business rate reliefs awarded in 2022/23 that from an accounting perspective impact over the next two financial years; Due to the additional business rates income above, the reserve had been increased by a further £450,000, thus leaving the fund reserve with a residue balance of £877,614 protection against future volatility.

·       The Valuation Office Agency (VOA) had notified the Council that they were to reduce the Rateable Value of the Museum from £146,000 to £1, this change had been back dated to 2019 and a refund in rates payable had resulted in a net positive impact to the council of £228,000. It was recommended within the Q1 report that this refund be placed into the Regeneration Reserve for future projects.

·       As at the 31st December 2023 total external borrowing was £3,000,000. The timing of any future borrowing was dependent on how the authority managed its treasury activity. Due to project spend slippages in the Capital programme and using the cash flow balances for internal borrowing had reduced borrowing costs on the revenue budget and it was currently forecasted a £274,000  ...  view the full minutes text for item 30

Report by Director of Resources and Deputy Chief Executive (attached)

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Performance and Financial Management Q3 2023-24.

The Finance Manager highlighted the following:

·         The revenue budget for 2023/24 was approved at Council on 22nd February 2023 at £14,766,450

·         As at 31st December 2023, the latest forecast net budget was £14,693,450, which produces a budget surplus of £73,000. Details are shown in “Appendix A – Variations in the Revenue Budget”.

·         The original budget for 2023/24 includes a forecast to achieve £250,000 worth of salary vacancy savings. The current position forecasts we will achieve £296,000 based on known vacancies to date.

·         The National pay award negotiations for 2023/24 had been settled and was paid to staff in Novembers’ salary, backdated to 1 April 2023. The pay award worked out to be an average of 6.7%, the original budget included 4%, and the additional costs of £436,000 had been funded from the Budget Management reserve.

·         As at 31st December it was now estimated income growth from Business Rates to be an additional £950,000, it was proposed to place the £950,000 into the following earmarked reserves:

Ø  Collection Fund reserve £450,000

Ø  Budget Management reserve £150,000

Ø  Town Centre Management reserve £200,000

Ø  Treasury Management reserve £150,000.

·         As at 1st April 2023 the Collection Fund reserve balance held was £1,340,177. This earmarked reserve was created to deal with the timing impacts of the Collection Fund (Business Rates), which ensured the revenue budget was not unduly affected in the year the taxes were collected. Collection Fund deficits/surpluses were reversed out to bring the revenue account back to the budgeted figure for the year; the deficits/surpluses were recovered/distributed in the following financial years. This reserve included a £912,563 balance that would be utilised in 2023/24 and 2024/25 to mitigate timing differences of business rate reliefs awarded in 2022/23 that from an accounting perspective impact over the next two financial years; Due to the additional business rates income above, the reserve had been increased by a further £450,000, thus leaving the fund reserve with a residue balance of £877,614 protection against future volatility.

·         The Valuation Office Agency (VOA) had notified the Council that they were to reduce the Rateable Value of the Museum from £146,000 to £1, this change had been back dated to 2019 and a refund in rates payable had resulted in a net positive impact to the council of £228,000. It was recommended within the Q1 report that this refund be placed into the Regeneration Reserve for future projects.

·         As at the 31st December 2023 total external borrowing was £3,000,000. The timing of any future borrowing was dependent on how the authority managed its treasury activity. Due to project spend slippages in the Capital programme and using the cash flow balances for internal borrowing had reduced borrowing costs on the revenue budget and it was currently forecasted a £274,000 underspend on the interest payable budget. In addition, due to on-going higher interest rates the Council was also  ...  view the full minutes text for item 88