Agenda item

Financial Monitoring to December 2018 - Quarter 3

To consider the report of the Director (NE) (reference 19/036) attached

Minutes:

The Cabinet considered a report by the Director (NE) (Reference 19/036) in respect of the Council’s financial performance to the end of December 2018.  Members were advised that the majority of savings identified as part of the 2018/19 budget setting process were being achieved and there were plans in place to address the small number that were outstanding.  The report outlined an expected year end surplus of £702k which was £187k higher than that previously reported.  However, following Full Council approval, £150k of this had been earmarked towards the 2019 Tour de Yorkshire Cycle event and £84k towards the implementation of the Residents Parking scheme.  The draft Financial Strategy considered earlier also recommended delaying the £200k draw from the General Fund that was budgeted for this year until 2020/21 and therefore, after these three areas had been taken into account, the uncommitted surplus was £268k.  The Cabinet had previously agreed that the remaining balance at year end would be transferred to reserves and set aside for the Capital Strategy.  The Accountancy Manager, Mr Hughes also alluded to the capital schemes which had now closed, none of which had exceeded their budgets; to the allocation of Section 106 monies towards access road improvements at Clarence Drive playing fields and towards garden improvements to the rear of the Evron Centre in Filey; and to the acceptance of grants from the Local Government Association for Cyber Resilience training and testing, and from the MHCLG for Brexit preparations and the provision of Disabled Facilities Grants.  In reply to the Chairman, the Director, Mr Edwards confirmed that the latter grant was paid to the Borough Council through the County Council and he would find out when this would be.

RESOLVED that the Cabinet:

i)             Note the report and in particular that:

 

·         Despite the setting of an extremely challenging budget a year end surplus of £702k is currently expected to be achieved (£187k higher than previously reported);

·         £234k of this surplus is already committed and Cabinet have previously agreed that the remaining balance will be transferred to reserves and set aside for the capital strategy / one off priorities.

·         The Draft Financial Strategy (19/44) recommends delaying the £200k draw from the General Fund included within the 2018/19 budget until 2020/21.  This will reduce the year end surplus.

·         The surplus is primarily driven by one-off savings specifically in relation to business rates refunds, one off grants and delays in legislative changes to pension auto-enrolment.

·         The majority of income targets are being achieved;

·         The capital programme continues to operate within the overall parameters set in terms of contingency levels;

 

ii)         Approve acceptance of the following grants:

 

·         £4,900 from Local Government Association for Cyber Resilience training and testing

·         £35,000 from MHCLG to support the Council in making preparations for Brexit.

·         £145,308 from MHCLG for the provision of Disabled Facilities Grants (DFG’s)

 

iii)       Approve the allocation of £25,000 of Section 106 monies towards access road improvements at Clarence Drive playing fields.

 

iv)       Approve allocation of £6,869 of Section 106 monies towards garden improvements to the rea of the Evron Centre in Filey.

 

v)         Approve the reallocation of monies within the Peasholm capital scheme to the wider park offering.

 

Reasons

To provide information relating to the Council’s financial performance for the 2018/19 year,

 

Supporting documents: