Agenda item

RESOLVED:           1) That the amended draft revenue outturn position for 2023/2024 (section 2 of the report) be approved.

2)       That the new transfers to reserves as listed at the amended Appendix 2 be approved.

3)       That the amendments to the Earmarked Reserves Policy (Section

4 of the report) be approved.

Reason for Decision

To consider and approve the draft revenue outturn position for 2023/2024 for the Council.

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Councillor Morley presented the revised report which set out in summary the revenue outturn for 2023/2024 for the Council. The report showed details of the major differences between actual costs/income compared to the revised estimates for 2023/2024 reported in the January 2023 financial monitoring.  He commented on the last Administration’s decision not to increase fees and charges when inflation had increased by over 11% with the resulting reduction in income.  He drew attention to the fact that despite this, the Council had assisted its residents where possible with financial issues.

The Assistant Director – Resources explained that the accounts showed the Borough’s spend of £28,006,479, which was significantly higher as a result of an advanced pension payment £3.62m to be funded from General Fund Reserve in 2023/2024, which itself would be replenished from Revenue Budget in 2024/2025 and 2025/2026. Removing the advance pension payment resulted in a Borough spend representing service activity, £24,386,479, which was (£542,741) below original budget.

The Assistant Director further drew attention to the fact that throughout the year there was significant uncertainty and variation to budget as reported in the budget monitoring report:-

- largely as a result of growing inflation on cost of supplies.

- Less than estimated Planning fee income.

- Additional car parking shared service provision.

- Settlement of VAT claim in favour of the Council.

The Council’s continuing strategy was to identify budget savings in year, as part of the monitoring process and at year end. Such a review increased estimated budget for income in the MTFS for 2023 – 2028 resulting in a net decrease in cost of service of 2.15% (£465k).

As set out in the Medium-Term Financial Plan in February 2023 a review of earmarked reserves was completed resulting in a re-allocation to the General Fund Reserve of £2,860,645.

The General Fund Reserve opening balance for 2023/2024 was £9,656,698.

Following movements within the financial year, the balance was reduced to £7,004,015 at the year end which would be the starting position for 2024/2025.

It was explained that the additional transfers to reserves and requests had resulted in revised estimates and hence the revised report had been issued.

The Leader sought clarification of the detail of the upfront payment of the pension of £3.6m, to which it was explained that  the upfront payment of £5.4m was budgeted at £1.8m across 3 years The upfront payment of £5.4m was paid in 23/24 and £1.8m was offset against this so £3.6m came from the general fund reserve balance.  The £1.8m budget in the next 2 years would be used to pay back to the general fund reserve balance.

With regards to the question on the £3m project reserve it was explained this was an earmarked reserve and therefore additional to the general fund reserve previously discussed.

In response to a question on 4.2 of the report, the Assistant Director provided more detailed explanations around the reasons for the adjustments to the policy in respect of the maximum limits for reserves.

She confirmed the next triannual review of the Pension Scheme would begin engaging next year for implementation in the 2026/27 financial year.

Councillor Rust commended the discretionary work being carried out by the authority which made a huge difference to a lot of lives.

Councillor Morley made reference to grant allocations from the County Council which he felt did not always reflect the amount of work carried out by the Borough on their behalf, and suggested that a list be compiled of those things to potentially suggest some reciprocation.

RESOLVED:                    1) That the amended draft revenue outturn position for 2023/2024 (section 2 of the report) be approved.

2)        That the new transfers to reserves as listed at the amended Appendix 2 be approved.

3)       That the amendments to the Earmarked Reserves Policy (Section 4 of the report) be approved.

Reason for Decision

To consider and approve the draft revenue outturn position for 2023/2024 for the Council.