Decision details

The Committee considered the provisional revenue and capital outturn for the 2017-18 financial year.

The Committee discussed the report, and there were a number of questions and comments, relating to the following topics:

·         Capital Projects Spending. Members were advised that capital project spending was primarily monitored over the life the project, and that any requests for significant additional funding would be submitted to the Executive for consideration. It was identified that most reported underspends and overspends during the life of a project therefore resulted from differences in in year project timings, rather than changes to total costs. It was noted that the remaining work to be completed on the Warwick Quadrant project would be confirmed following the meeting.

·         Allocation of Reserves. Members were advised that reserves were created to reflect identified demands. The proposed Government Funding Reduction reserve was confirmed to reflect the external risk associated with uncertainty of NNDR (Nation Non-Domestic Rates – colloquially Business Rates) levels from 2020. It was confirmed that the Business Rates Pilot scheme was for one year, and was not currently projected to extend beyond that point.

·         Treasury Performance. It was identified that the Council did not have the capacity to undertake the investment fund management currently conducted by an external fund manager (Tradition) in-house. It was noted that information on when the external fund manager was last reviewed would be confirmed following the meeting. It was noted that the Council had been able to obtain a positive short term investment variance in 2017/18 resulting from additional actions to secure a return on cash balances.  It was noted that information on income from trading companies would be confirmed following the meeting.

·         Parking. A query was raised regarding the reduced income from parking services. Members were advised that the situation was being monitored to determine the causes. It was confirmed that pilot work was being undertaken on a pay-on-exit scheme at the Bancroft Road site, with consideration being required to ensure there was not an adverse effect on traffic. It was noted that the timescale for future implementation of related schemes would be confirmed.

·         Legal Services. Members were advised that the contextual changes to legal services costs had been reflected in the 2018-19 budget, and that the overspend was not expected to repeat to the same degree. It was noted that the overspend had been impacted by the reduction in land charges income, following changes in legislation to allow competing providers. Recruiting for a number of legal team positions was noted to be ongoing. Members were advised that legal activities were undertaken in-house where appropriate, but that external legal advice continued to be required in specialist fields. The Leader advised that the Council would be working to ensure that it had sufficient resourcing, including in legal services, to deliver its objectives.

·         Fund Recovery from Icelandic Banks. It was confirmed that all money in Icelandic banks affected by the 2008 financial crisis had now been recovered.

·         Recycling Income. Members were advised that income from sale of recyclates had decreased significantly, and the income for 2018-19 was therefore expected to considerably less than in 2017-18. It was identified that the Council’s approach to collecting separated categories of recyclates continued to deliver improved income relative to co-mingled collection.

·         CIL Administration Costs. It was confirmed that CIL (Community Infrastructure Levy) administration costs were expected to recover to projected levels.

·         Investment Strategy. Members were advised that the Council’s new investment strategy and associated governance arrangements were still under development, and would be submitted for full Council approval before implementation. It was identified that the strategy would include consideration of the best use of cash reserves. It was noted that the Council had an approved £80 million borrowing limit, but did not currently have any borrowing activity. It was identified that the approach to borrowing would be considered as part of the development of the investment strategy.

RESOLVED that the Provisional Revenue and Capital Outturn 2017-18 be noted.