Issue - meetings

To consider the provisional outturn figures for 2017/18 and to note the establishment of a Business Rates Equalisation Fund.

RESOLVED:

a)           That the latest budget forecasts for 2017/18 for the General Fund, Capital Programme and Housing Revenue Account, as set out in paragraphs 3.2, 4.2 and 5.1 of Report Item 6 to the Cabinet, be noted; and

b)           That the establishment of a Business Rates Equalisation Reserve be noted.

The Cabinet was advised of the provisional outturn figures for 2017/18 budget, compared to the original budget, following the variations that had been reported, on a regular basis, through financial monitoring reports.

The General Fund outturn was now estimated at £15.346 million, compared to the original budget of £16.587 million.  The key variations were set out in Table 1 and paragraphs 3.5 to 3.7 of Report Item 6 to the Cabinet.  Once the final year end position had been established these variations would be reviewed to determine which would continue into the future but had not yet been reflected in the 2018/19 budget and Medium Term Financial Plan.  In total, since the last financial report to the Cabinet in November 2017, further savings and income generation of £1.303 million had been identified (of which £337,000 had been returned to reserves); new requirements totalling £301,000 had been identified; and the Milford on Sea beach recharge, to the value of £140,000, had been rescheduled into 2018/19.

Additional savings of £127,000 had been identified against the general fund asset maintenance and replacement budget; and rephasings of £235,000, as a result of incomplete projects, had also been identified.  In addition, community grants to the value of £63,000 would be rephased into 2018/19.

The outturn position showed an increase in capital expenditure, bringing the General Fund capital expenditure to £24.418 million, compared to the original budget figure of £21.266 million.  The report included net new requirements of £2.549 million and rephasings of £1.133 million.  Further details of the variations were set out in Tables 3 and 4 of Report Item 6 to the Cabinet.

Further variations amounting to £1.156 million had been identified against the Housing Revenue Account, as set out in Section 5 of the report.  A significant proportion of this related to the transfer of the Disabled Facilities Adaptations budget into the Capital Programme, with a lesser forecast spend on adaptations of £150,000.  In accordance with current policy, the Housing Revenue Account would be maintained with a balance of £1 million, with any surplus transferred to the acquisitions and development fund.

The Cabinet supported the proposal to establish a Business Rates Equalisation Reserve to smooth out the significant fluctuations that could arise from this revenue stream, to give greater certainty to the budgeting process.

RESOLVED:

(a)         That the latest budget forecasts for 2017/18 for the General Fund, Capital Programme and Housing Revenue Account, as set out in paragraphs 3.2, 4.2 and 5.1 of Report Item 6 to the Cabinet, be noted; and

(b)         That the establishment of a Business Rates Equalisation Reserve be noted.