Report by Director of Resources and Deputy Chief Executive to the Strategy and Resources Committee on 5 August 2024 (attached).

Council considered a report by the Director of Resources and Deputy Chief Executive regarding the Performance and Financial Management Quarter 1 of 2024/25 to the Strategy and Resources Committee on 5 August 2024 (circulated previously).

Report by the Director of Resources and Deputy Chief Executive to Strategy and Resources on 5^th August 2024 (attached).

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously) regarding the Performance and Financial Management for Quarter 1 of 2024/25 together with Minute Extract of Strategy and Resources on 1st July 2024 (circulated previously).

The Finance Manager highlighted the following:

• The revenue budget for 2024/25 was approved at Council on 21^st February 2024 at £16,432,690.
• As at 30^th June 2024, the latest forecast net budget was £16,419,690, which produced a budget surplus of £13,000. Details were shown in “Appendix A – Variations in the Revenue Budget” of the report.
• The original budget for 2024/25 included a forecast to achieve £250,000 worth of salary vacancy savings. The current position forecasted that the Council would achieve £143,000 based on known vacancies to date, but it was anticipated that the budget of £250,000 would be achieved by the end of the financial year.
• The National pay award was currently being considered by the Unions; however if the 2024-25 pay award exceeded the budgeted 4% included in the original budget then the Council would look to fund any shortfall from the Budget Management reserve, which currently had a balance of £528,627.
• As at 1^st April 2024 the Collection Fund reserve balance held was £1,790,180. 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 £1,246,078 balance that would be utilised in 2024/25 (£1,012,856) and 2025/26 (£233,222) to mitigate timing differences of business rate reliefs awarded in 2023/24 that from an accounting perspective impact over the next two financial years; thus leaving the fund reserve with a residue balance of £544,105 protection against future volatility.
• At the 30^th June 2024 total external borrowing was £6,000,000. 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, an estimated reduction in borrowing costs and a potential underspend of £100,000 on the interest payable revenue budget.
• As part of the 2023/24 outturn the Council contributed an additional £250,000 into the insurance reserve to mitigate against higher costs in 2024/25 and beyond, the reserve currently had a balance of £347,500 and officers planned to use £220,000 from the reserve to offset the increased insurance costs in the year 2024/25. This left a balance of £127,500 in the reserve to help mitigate against future years costs.
• Pay and display income was slightly lower than anticipated with an estimated reduction for the year of around £120,000.
• Movement in reserves and balances was attached to the report at Appendix B.
• Strategic Contingency Reserve movements and commitments were attached at Appendix C.
• The  ...  view the full minutes text for item 34

Report by Finance Manager (attached)

The Committee considered a report by the Director of Resources and Deputy Chief Executive (circulated previously), regarding Performance and Financial Management Quarter 1 of 2024/25.

The Finance Manager highlighted the following:

·       The revenue budget for 2024/25 was approved at Council on 21 February 2024 at £16,432,690.

·       As at 30 June 2024, the latest forecast net budget was £16,419,690, which produces a budget surplus of £13,000. Details were shown in Appendix A – Variations in the Revenue Budget of the report.

·       The original budget for 2024/25 included a forecast to achieve £250,000 worth of salary vacancy savings. The current position forecasted that the Council would achieve £143,000 based on known vacancies to date, but it was anticipated that the budget of £250,000 would be achieved by the end of the financial year.

·       The National pay award was currently being considered by the Unions; however if the 2024-25 pay award exceeded the budgeted 4% included in the original budget then the Council would look to fund any shortfall from the Budget Management reserve, which currently had a balance of £528,627.

·       As at 1 April 2024 the Collection Fund reserve balance held was £1,790,180. 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 £1,246,078 balance that would be utilised in 2024/25 (£1,012,856) and 2025/26 (£233,222) to mitigate timing differences of business rate reliefs awarded in 2023/24 that from an accounting perspective impact over the next two financial years; thus leaving the fund reserve with a residue balance of £544,105 protection against future volatility.

·       At the 30 June 2024 total external borrowing was £6,000,000. 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, an estimated reduction in borrowing costs and a potential underspend of £100,000 on the interest payable revenue budget.

·       The Budget and Financial Framework report to Full Council 21 February 2024 outlined the Capital Programme for the 2024/25 financial year of £20,258,368.  Project underspend and further variations of £4,356,379 were approved as part of the performance and financial management report to Strategy and Resources Committee, to produce a revised 2024/25 Capital Programme of £24,614,747.

·       The Programme of £30,905,987 is funded by Capital Receipts / Borrowing (£13,411,234), External Grants and Contributions (£15,417,968) and Reserves (£2,076,785).

·       Release of Funds – Capital Programme:

Ø  S106 Anchorwood Bank £11,170.

·       Section Five of the report detailed a summary of updates on the Corporate Plan, Key results and performance indicators.

In response to a question on the impact to the Council if the pay award were settled at a half percent or full percentage higher than currently  ...  view the full minutes text for item 37