Issue - meetings

To provide an overview of the Council’s financial position against the budget as at the end of September 2020 and to present an updated long term forecast.

RESOLVED –

(1)    That in respect of the financial performance against the budget at the end of September 2020 -

(a)    the position be noted;

(b)    the proposed in-year adjustments to the budget, as set out in Appendix H to the Portfolio Holder’s report, be agreed;

(c)    the Corporate Director (Place and Economy), in consultation with the Portfolio Holder for Leisure and Tourism, be agreed to amend leisure membership fees in response to the national lock down period and the resumption of a phased approach to reopening up leisure facilities later in the year;

(d)    in respect of the Council’s Treasury Management Practices, the aggregate amount of money that can be placed overnight with the Council’s bankers be increased temporarily from £1.000m to £1.500m for each day the offices are closed over the Christmas break; and

(e)    the Council continues to be a member of the Essex Business Rates Pool in 2021/22 if it remains financially advantageous to do so.

(2)    That in respect of the Updated Long Term Forecast -

(a)    the updated forecast be agreed and that the Resources and Services Overview and Scrutiny Committee be consulted on the latest position.

The Cabinet gave consideration to a report of the Corporate Finance & Governance Portfolio Holder (A.5) which sought to provide it with an overview of the Council’s financial position against the budget as at the end of September 2020 and which presented it with an updated long term forecast.

The report was split over two distinct sections as follows:

1)  the Council’s in-year financial position against the budget at the end of September 2020; and

2)  an updated long term financial forecast.

1)     In respect of the in-year financial position at the end of September 2020:

It was reported that this report was the first detailed financial performance report for 2020/21 but it built on the report presented to Cabinet in May 2020, which had provided a timely assessment of the impact of COVID 19 on the Council’s financial position.

Cabinet was informed that the position to the end of September 2020, as set out in more detail within the report’s appendices, showed that overall the General Fund Revenue Account was underspent against the profiled budget by £6.858m (£4.137m of which related to the timing of expenditure from COVID funding received from the Government). It was acknowledged that other expenditure or income trends might still be emerging with the position also largely reflecting the timing of other general expenditure and/or income budgets. However, any significant issues arising to date had been highlighted and comments provided as necessary within the Portfolio Holder’s report.

Members were made aware that in respect of other areas of the budget such as the Housing Revenue Account, capital programme, collection performance and treasury activity, apart from additional details set out in the report, there were no major issues that had been identified to date.

Cabinet was reminded that any emerging issues would be monitored and updates provided in future reports which would include their consideration as part of updating the long term financial forecast.

Members were advised that some necessary changes to the 2020/21 budget had been identified which were set out in Appendix H to the Portfolio Holder’s report. The same appendix also set out the necessary changes to the budget to reflect the impact of COVID 19, the costs of which to date had been met by the general financial support provided by the Government.

It was reported that the net impact of the budget adjustments would be moved to, or from, the Forecast Risk Fund. At the end of the second quarter, it had been possible to make a small contribution to the fund of £41k, which supported the requirement set out in the long term forecast of identifying in-year savings of £500k each year.

Cabinet was informed that a half year treasury management review had been carried out with an associated recommendation to Members to temporarily increase the aggregate limit of funds that could be placed overnight with the Council’s bankers for the period that the offices would be closed over the Christmas break.

It was proposed by the Portfolio Holder to continue  ...  view the full minutes text for item 87