To report on the Councils Finances as at the 31st December 2023.

1.              That the current forecast unbudgeted surplus of £522k and the detail set out in Appendix A be noted;

2.              That approval be given for the drawdown of:

a)       £82,040 from the Housing Reserve in respect of the Household Support Scheme concerning the Post Office payout which will be distributed to agreed household support projects;

b)       £133,000 from the Service Transformation Reserve – Funding for 2 Planning Enforcement consultants;

c)       £148,550 from the Economic Growth Reserve - External consultancy services required to complete the East Lindsey Strategic Flood Risk Assessment;

3.                  That the changes to the approved capital programme budget for 2023/24 of £2.25m as set out in Appendix A Table 4a be recommended to full Council.

A report was presented to provide information on the Council’s Finances on 31st December 2023 as detailed in the attached appendix A for the following areas: general fund revenue budget, general fund reserves position, capital programme for 2023-2024 and Treasury Management Performance.

The Portfolio Holder for Finance referred to:

•         The General Fund provisional outturn forecast of a surplus of £522,000 as detailed in table one, Appendix A to the report, together with an analysis of the variations. 

•         Savings target, of £1.38 million, identified against this target was the amount of £927,000 for Quarter 3.  In terms of Internal Drainage Boards, (IDBs) the financial pressure generated by the IDBs had been supported by government for 2023 and 2024 to the sum of £923,000 for which the Council was very grateful.  However, the issue and challenge of a long term solution to this problem had been raised again with government officials in order to seek a resolution that enabled the Council to make use of the Council Tax it raised for the purpose that was set.

•         Reserves, general fund specific reserves had seen a reduction in balance of £1,852k.  Further specific details were set out in Appendix A Table 3. The General Fund reserve balance remained at £1.822 million.

•         Capital general fund.  The total revised general fund capital programme for 2023/2024 was £48.058m as detailed in table five of Appendix A.  The updated budget carry forward due to slippage on the General Fund Capital Programme was £23.979m as detailed in Table 5, which was to be noted following approval by Council as part of the 23-24 budget setting which took place on the 28th of February.

•         Treasury Management Section 2.4 provided detail of the Council's investments held at 31st of December 2023.  The original profiled net budget for investment income at Q3 was £1.536m and actual investment income was estimated to be £2.399m. This was an increase in income above budget of £836k.

•         Treasury Management.  The original profiled net budget for 2023/24 was £3.071m and the forecast outturn was estimated to be 4.826m. This estimated out turn is an increase in income above budget of £1.755m. 

•         On 9th of October 2023, the Council prematurely repaid £20m of external borrowing to the public Works Loan Board.  The financial implications of this decision had now been reflected within the reported position for Q3, with a credit to revenue of £398k in 2023/24.

During discussion Members supported the proposals and commended the Portfolio Holder for Finance and the Finance Team for their financial management.

The Portfolio Holder for Community Safety, Leisure and Culture reflecting on the need to find a longer-term solution on flood alleviation, advocated future lobbying in respect of the regulations.

The Portfolio Holder for Coastal Communities wished to highlight that Kingfisher Caravan Park had delivered over budget, as detailed in Table 2 of Appendix A to the report. 

RESOLVED

1.       That the current forecast unbudgeted surplus of £522k and the detail set out in Appendix A be noted;

2.       That approval be given for the drawdown of:

a)       £82,040 from the Housing Reserve in respect of the Household Support Scheme concerning the Post Office payout which will be distributed to agreed household support projects;

b)       £133,000 from the Service Transformation Reserve – Funding for 2 Planning Enforcement consultants;

c)       £148,550 from the Economic Growth Reserve - External consultancy services required to complete the East Lindsey Strategic Flood Risk Assessment;

3.       That the changes to the approved capital programme budget for 2023/24 of £2.25m as set out in Appendix A Table 4a be recommended to full Council.

Reasons:

To ensure the Council’s forecast  financial position for 2023/24 is considered and related decisions approved. It is important that the Executive are aware of the financial position of the General Fund to ensure that they can make informed decisions that are affordable and financially sustainable for the Council.

Other options:

To not approve the financial movements outlined.