Agenda item

Report of the Strategic Director of Finance and Customer Services.

Recommendations:-

1.    That the revenue outturn position for 2018/19 be noted. 

2.    That approval be given to the transfer of the £1.4m HRA underspend to the HRA reserve.

3.    That the carry forward of the combined schools balance of £3.369m in accordance with the Department for Education regulations be noted.

4.    That the reserves position set out in section 2.33 be noted.

5.    That the capital outturn and funding position as set out in sections 2.41-2.69 be noted.

6.    That Cabinet refer the report to Council to note the updated financial position as detailed in the report and for approval of the updated Capital Programme as set out in paragraphs 2.65 to 2.69 and Appendices A to D.  

Consideration was given to the report which outlined the final revenue and capital outturn position for 2018/19.

The Revenue Budget 2018/19 was approved by Council on 28^th February 2018.  A budget of £216.876m was set for General Fund services; this excluded schools budgets and Housing Revenue Account (HRA). 

The final outturn position was a balanced budget which required £3.2m less use of corporate reserves than planned for.  The original budget proposed a planned use of corporate reserves of £5.2m as part of a budget contingency of £10.0m.  Additional funding received in year, use of earmarked grants and balances and flexible use of capital receipts had resulted in a reduced call on the planned reserves leaving a balance of £3.2m available to support the budget in later years. 

The Council’s General Fund minimum balance had been increased from £11.269 to £16.812m, as a result of the planned use and profiling of reserves balances as set out in the Council’s Reserves Strategy reported in the Budget and Council Tax Report 2019/20.  The reserve was held to protect the Council against unforeseen events and realisation of contingent liabilities. 

The Housing Revenue Account had an underspend of £1.4m.  This reduced the overall amount required from reserves to balance the budget. The final drawdown from the HRA reserve was just under £11m.

The schools outturn position which was funded by the ring-fenced Dedicated Schools Grant had an underspend of £1.968m, therefore, increasing schools balances at the end of 2018/19 for the Council’s maintained schools and pupil referral units to £3.369m. 

The capital outturn showed slippage and underspend of £8.1m against the estimated spend for 2018/19 included within the Capital Programme.  Of this, £7.073m related to slippage on projects which had been factored into the revised Capital Programme 2019/20 – 2022/23.

Cabinet Members noted the financial outturn, but in doing so sought clarity on the High Needs Block and was advised the outturn at the end of March 2019 was an in-year overspend of £5.4m of which £5.1m was the High Needs Block with minor movements of £0.3m across the other blocks.

Resolved:-  (1)  That the revenue outturn position for 2018/19 be noted. 

(2)  That the transfer of the £1.4m HRA underspend to the HRA reserve be approved.

(3)  That the carry forward of the combined schools balance of £3.369m in accordance with the Department for Education regulations be noted.

(4)  That the reserves position set out in section 2.33 be noted.

(5)  That the capital outturn and funding position as set out in sections 2.41-2.69 be noted.

(6)  That the report be referred to Council to note the updated financial position as detailed in the report and for approval of the updated Capital Programme as set out in paragraphs 2.65 to 2.69 and Appendices A to D.