Issue - meetings

Report of the Corporate Director (Resources, Environment and Cultural Services) on the Council’s treasury management activity and prudential indicators for 2019/20.

The report and actual treasury management prudential indicators for 2019/20 were noted.

Report of the Corporate Director (Resources, Environment and Cultural Services) on the Council’s treasury management activity and prudential indicators for 2019/20.

(1)       The Decision Taken

RESOLVED:

The report and actual treasury management prudential indicators for 2019/20 were noted.

(2)       Reasons for the Decision

Within the HRA, overall borrowing of £242.9M at 2019/20 year end is below the figure of £246.7M at the end of 2018/19. This reflects the fact that continued repayment of existing debt has exceeded any new borrowing needed to continue to finance our ambitious Affordable Housing Programme.  The level of any new HRA borrowing will depend upon the rhythm of this programme and the extent to which Right to Buy receipts are available.  It is not envisaged, however, that borrowing will rise back above the original £305M, so we currently have sufficient borrowing headroom.

As previously reported to members, the government raised PWLB interest rates in October 2019, but this only affected new borrowing, and has not materially impacted us.

With continued capital expenditure in both the HRA and General Fund, investment balances have fallen from £26.8M to £20.1M over the year.

The Council’s liquidity levels are being carefully monitored in 2020/21 as the Council continue to assess the financial impact of the Covid-19 pandemic.

(Note:  *This item is part of Financial Outturn – General Fund, HRA and Capital (Forward Plan Reference FP984)).

Report of the Corporate Director (Resources, Environment and Cultural Services) on the capital expenditure and associated capital funding for both General Fund and Housing Account for 2019/20.

(1)     The overall capital outturn position and financing for 2019/20 was noted.

(2)     Cabinet approved the roll forward budgets as detailed in Appendix A of the report.

Report of the Corporate Director (Resources, Environment and Cultural Services) on the capital expenditure and associated capital funding for both General Fund and Housing Account for 2019/20.

(1)       The Decision Taken

RESOLVED:

(1)     The overall capital outturn position and financing for 2019/20 was noted.

(2)     Cabinet approved the roll forward budgets as detailed in Appendix A of the report.

(2)       Reasons for the Decision

The capital expenditure outturn within the General Fund is £23M lower than the original budget.  This is mainly due to the rephasing of projects, and the majority of projects impacted by this, such as Hatfield Town Centre, WGC North, Splashlands, and the Tewin Road Depot are now all under way.

However, £3.8M of our capital budget for strategic property investment remains unspent, as it was felt prudent not to rush into opportunities at this stage.  Furthermore, the £4.0M crematorium project has still not been able to start. 

The capital expenditure outturn within the HRA is £1.3M higher than the original budget.  Although £4.4M of budgeted Affordable Housing Programme capital expenditure has been re-phased into 2020/21, this was more than offset by the £6.0M expenditure on Chequersfield, which was approved by Full Council as an addition to the original HRA capital budget.

(Note:  *This item is part of Financial Outturn – General Fund, HRA and Capital (Forward Plan Reference FP984)).

Report of the Corporate Director (Resources, Environment and Cultural Services) on the Revenue Outturn position for the financial year 2019/20.

(1)     The outturn for the General Fund and the Housing Revenue Account as at 31 March 2020 was noted.

(2)     The movements on earmarked reserves as detailed in paragraph 3.13 were approved.

(3)     The position on debts set out in section 5 of the report were noted.

Report of the Corporate Director (Resources, Environment and Cultural Services) on the Revenue Outturn position for the financial year 2019/20.

(1)       The Decision Taken

RESOLVED:

(1)  The outturn for the General Fund and the Housing Revenue Account as at 31 March 2020 was noted.

(2)  The movements on earmarked reserves as detailed in paragraph 3.13 were approved.

(3)  The position on debts set out in section 5 of the report were noted.

(2)       Reasons for the Decision

General Fund

Within the General Fund, Net Controllable Income and Expenditure amounted to £18.15 million, or £1.15 million below the Original Budget.

Significant favourable variances in Quarter 4 are set out in Section 3 of the report and included:

•      £276,000 of new burdens grants received in respect of benefit processing, where much of the cost was in fact absorbed within existing budgets.  Some of this is down to the timing of expenditure, so part of the favourable variance will be used to add to earmarked reserves to absorb expenditure in 2020/21.

•      £263,000 favourable on parking income following the ending of the CP Plus parking contract, as set out in 3.3.1.

•      £216,000 favourable on recycling and domestic waste income, as set out in 3.3.2.

•      £321,000 favourable on Housing and Communities, where additional expenditure on temporary accommodation has been more than matched by grants received.  Again, some of this is down to the timing of expenditure, so part of the variance has been added to earmarked reserves to absorb expenditure in 2020/21.

•      Against these positive variances, additional costs within Planning of £267,000 have arisen as a result of the Local Plan. 

Business Rates came in above budget by £860,000, largely as a result of the operation of the business rate “pool” to which we belonged. 

The Collection Fund deficit was absorbed by the earmarked reserve previously set up for this purpose, but it has been necessary to add to the remaining Earmarked Reserve to allow for the current year’s Collection Fund deficit and future business rate volatility.

The Council will continue to monitor the situation and manage the challenges through 2020/21.  But the Peer Review in late 2019 recognised the Council’s commitment to financial sustainability, and our financial performance in 2019/20 at least means the Council started the very difficult 2020/21 year in a strong position.

Housing Revenue Account

A balance of approximately £2.5M is maintained on the HRA, and any surplus after allowing for interest payments and debt principal repayments is re-invested in the Affordable Housing Programme.  Where necessary to maintain this capital programme at budgeted levels, additional HRA borrowing is undertaken to supplement this, with total borrowing being maintained comfortably within our “headroom”. 

Just as with the General Fund, the HRA will face challenges arising from the Covid pandemic in 2020/21.  For now, it is felt that the bad debt provision for rental income is adequate, but this is being kept under review.

The potentially significant 2020/21 Covid-related impact upon the HRA, identified in the paper referred  ...  view the full minutes text for item 137