Issue - meetings

To consider the Council’s general fund outturn for 2023/24, the financing of the capital programme and the annual treasury management report and performance and to approve the transfers to and from earmarked reserves. 

1.     That the Council’s general fund outturn for 2023/24, the financing of the capital programme and the annual treasury management report and performance be NOTED.

2.     That the transfers to and from earmarked reserves be APPROVED.

8.1             The report of the Associate Director: Finance, circulated at Pages No. 15-46, highlighted the Council’s financial performance for the previous year, setting out the General Fund and capital outturn positions.  Members were asked to consider the General Fund outturn for 2023/24, the financing of the capital programme and the annual treasury management report and performance; and to approve the transfers to and from earmarked reserves.

8.2             In introducing the report, the Lead Member for Finance and Asset Management felt it should be noted that the report had been put together during a period of high intensity for Officers with them having to close the financial year, whilst also supporting the delivery of the Parliamentary election, as well as having auditors undertaking their work related to the accounts and year end.  Reporting on the quarter 3 position, the Executive Committee had been updated in March that a forecast £202,000 surplus was anticipated by the end of the financial year.  From reading the report, Members would note that the Council had performed significantly better than predicted with a final outturn of £2.9m surplus.  It should be noted that a transfer of £1.49m to externally ringfenced reserves was required, which left an overall surplus of £1.4m.  As had been the case throughout the year, some areas had overspent whilst there had also been higher levels of income than expected elsewhere.  He had picked out some key details which included a surplus of £1.9m in services expenditure largely due to the cost of employees being £218,000 under budget; however, it should be noted that there was a target within the Council’s corporate expenditure to save £209,000 from employment costs across the Council which reduced the predicted underspend to £9,000.  Payments to third parties showed a £550,000 overspend which included an additional £235,000 for the Materials Recovery Facility (MRF) gate fee, and emergency homeless accommodation costs were £128,000 over budget due to increased demand. Externally funded projects showed an underspend of £1.03m due to phasing of funding and project delivery – these funds had been transferred into reserves for use when required.  Income showed a £1.5m surplus, primarily linked to payments including the Council being awarded a significant costs claim against two defendants in health and safety cases, planning fees and Community Infrastructure Levy (CIL) administration fees.  It was noted that corporate expenditure was in surplus by £919,000 with the main reasons being an additional £539,000 of treasury investment income compared to budget as a result of the high interest rates and timely management decisions, and business rates retention being £222,000 higher than budget.  With regard to capital budget and reserves, set out at Appendices B and D respectively, spending was broadly in line within the approved budgets.  It was worth noting that capital spend was approximately £550,000 underspent due to longer than expected lead times for new vehicles and would now be purchased in the next financial year, as well as a £280,000 underspend on the installation of the new heating system for  ...  view the full minutes text for item 8