Issue - meetings

Report of the Strategic Director of Housing and Customer Services

Presented by the Corporate Portfolio Holder

The Corporate Portfolio Holder presented the report to Members.

He advised Members that the results were provisional as they were still subject to external audit and could change, and the final audited accounts would be considered and approved by the Audit & Governance Committee on 25 July 2018.

In relation to the General Fund he stated that the expected final position was £3.27m surplus against a budget of £0.934m and that a number of variances had contributed to the position as covered in Table 2 of the report.  He informed Members that the most significant variance had been a favourable movement in business rates, with an additional £1.78m retained by the Council compared to the budgeted level. 

He highlighted that it was proposed to safeguard the Council against future appeals by transferring £614k to an earmarked reserve and would be used to negate any unfavourable movements in business rates in 2018/19 which could be the result of new appeals. He stated that it was proposed that £1.86m of the surplus arising on the 2017/18 year was contributed to the self-sufficiency reserve which would take the balance of the reserve to £2.76m and of the remaining surplus it was proposed that £600k was set aside to support asset acquisition and redevelopment in Coalville as part of the Coalville Project, and £200k was set aside for the purposes of replacing the Council’s finance system.  Capital funding for the project was originally agreed as part of setting the capital programme for 2018/19.  However, following soft market testing it has been identified that there is a need for predominantly revenue funding instead of capital. 

In relation to the outturn on the HRA there was an expected surplus of £520k against a budget of £142k with the major variances being additional rental income, under spend on cyclical costs and a reduction in depreciation charge. He also drew Members attention to the reserves were approval was sought regarding to transfer £698k of existing reserves identified as no longer being required. It was proposed that £486k was to be allocated for strategic site acquisitions to support the acquisitions of sites within the District that were in the public interest in terms of regenerating the District’s key towns and £200k towards the replacement of the Council’s finance system, taking that total reserve to £400k. 

It was moved by Councillor N J Rushton, seconded by Councillor R Blunt and

RESOLVED THAT:

The Financial Performance for 2017/18, including the impact on reserves and balances as at 31 March 2018 be approved.

Reason for decision: Requirement of Financial Procedure Rules