Agenda item

To enable the Committee to scrutinise the Council’s financial outturn for the year 2018/19 and the allocation of the associated General Fund Variance for the year.

The Committee had before it the Report of the Deputy Chief Executive  (A.1) which provided it with an overview of the Council’s financial outturn for the year 2018/19 and the allocation of the associated General Fund Variance for the year.

It was reported that on 31 May 2019 the Leader considered the Financial Outturn 2018/19 and made the following decision:-

That the Leader of the Council, on behalf of the Finance and Corporate Resources Portfolio Holder:

(a)  Noted the financial outturn position for 2018/19 as set out in the report and appendices;

(b)  Approves the financing of General Fund capital expenditure for 2018/19 as detailed in Appendix D;

(c)  Approves the movement in uncommitted and earmarked General Fund reserves for 2018/19 set out in Appendix E;

(d)  Approves the qualifying carry forwards totalling £18.716m (£9.762m Revenue and £8.954m Capital) as set out in Appendix K;

(e)  Agrees that all other carry forwards totalling £0.790m requested by services be transferred to the relevant earmarked reserve pending consideration by Cabinet at its July 2019 Meeting

(f)   Approves, subject to the above, that the overall General Fund Outturn Variance for the year of £0.843m be transferred to the Revenue Commitments reserve until Cabinet formally considers the allocation of this funding at its July 2019 meeting.

(g)  Approves in respect of the HRA the movement on the HRA balances for 2018/19 including any commitments set out within Appendices H and I along with recharges to the HRA from the General Fund of £2.429m for the year and the financing of the HRA capital expenditure set out in Appendix I; and

(h)  Approves that the Council’s Section 151 Officer, in consultation with the Finance and Corporate Resources Portfolio Holder, be authorised to adjust the outturn position for 2018/19 along with any corresponding adjustment to earmarked reserves as a direct result of any recommendations made by the Council’s External Auditor during the course of their audit activities relating to the Council’s 2018/19 accounts.

It was also reported that on 19 July 2019, Cabinet considered the Outturn 2018/19 and the Proposed Allocation of General Fund Variance for the Year and made the following decision:-

That Cabinet:

(a)  Agrees that of the total of £0.790m requested by services, £0.475m can be retained by them via the associated carry forward requests as set out in Appendix A.

(b)  Approves the allocation of the General Fund Variance for the year of £1.158m as set out in table 1 of the report, of which £0.150m be allocated to a climate emergency budget.

The two officer reports submitted to the Leader and Cabinet referred to above were attached as appendices for the Committee’s consideration.

During the discussion of this matter, there was reference to the following in the key departmental variances:

(a)  There had been a lower than budgeted Income from Bring Bank Recycling income – what could be done to improve this and whether the Council’s private sector partner was aware that, it was said, Sweden was looking to import more waste to recycle. The volatile nature of the market in certain recycled materials was reflected to the Committee as a reason why in one year income from certain recycled material was lower than budgeted.

(b)  There had been additional income achieved in the year from that budgeted for in respect of off street car parks – it was therefore disappointing to note that investment in the Walton Car Park had not proceeded.

(c)  The net overspend on Leisure Facilities included a reference to £20k being paid to Brightlingsea Town Council in respect of the transfer of the Brightlingsea Pool – the note did not say what the costs to this Council would have been if the transfer had not occurred; which it was said would have been higher.

(d)  There had been an overspend in defending Planning Appeals – the total cost for defending such appeals in 2018/19 was some £242K and understanding how some of these costs could be avoided in the future was important.

In respect of General Fund Position as at the end of March 2019 in the report in respect of Corporate Services, and specifically ‘Rents Received’, it was noted that there had been income received in excess of the budget in 2018/19 and this drew a number of questions on the charging practices for organisations in Council properties that were providing services that were otherwise in the power of the Council to provide directly.  In this respect the position concerning the Walton Heritage Centre was referred to.

Officers agreed to provide further information to Members of the Committee on the charges for Council owned properties.  Members could also look at the overall charging policies as part of its review of the Budget preparation at its meeting on 16 December 2019.  In the meantime, individual instances could be raised through the usual channels.

In relation to the Qualifying General Fund Carry Forwards (Capital) it was highlighted that £3.1m related to Disabilities Facilities Grants.  The Committee was advised on the inter-dependency for these Grants to be awarded on the District and County Councils in respect of assessing and allocating those funds.  The Committee was further advised on this Council’s decision to establish two posts to mitigate any resulting backlog that could arise.  The value of an All Member Briefing on Disability Facilities Grants was stated by a number of Members.

The Committee also considered the allocation of the General Fund Variance from 2018/19.  In respect of this element of the report:

(a)  In response to a question, the Committee was advised that several items of elections equipment were in need of replacement (including Polling Booths which were costing an increasing amount to repair).  The costs in previous years for additional scanning equipment were more concerned with electoral registration following the introduction of Individual Electoral Registration for which central government grants had been secured and offset the cost to the Council.

(b)  The detailed proposals for the allocation of £0.525m to the Clacton Leisure Centre in respect of the investment in that Centre was to be considered by the Cabinet (potentially in September 2019).  As such, with this Committee’s work programme item for the 16 September 2019 meeting being Leisure Centre provision in the District, the detailed proposals for the investment in Clacton leisure Centre could be considered then.

It was RESOLVED that;

(1)  The Chief Executive be requested to consider the inclusion of a section on Disability Facilities Grants as part of a future All Member Briefing;

(2)  The Financial Outturn 2018/19 and Allocation of the General Fund Variance for the Year, the answers given to questions on the same and the requests for further information as outlined above be noted; and

(3)  Within its work programme for the year the detailed proposals for investment in the Clacton Leisure Centre item be included as part of the 16 September 2019 meeting item on Leisure Centre provision in the District generally.