Agenda, decisions and minutes

To confirm as a correct record the Minutes of the meeting held on 29 March 2022 (previously circulated).

The Minutes of the meeting held on 29 March 2022 were approved as a correct record and noted by the Chairman.

Report of the Assistant Director (Legal and Governance) on the status of actions agreed at the last Cabinet meeting.

The status of actions agreed at the Cabinet meeting on 1 March 2022 and for decisions taken by Cabinet Members exercising their individual delegated powers between 21 March 2022 to 30 May 2022 in the report of the Assistant Director (Legal and Governance) was noted.

To note declarations of Members’ disclosable pecuniary interests, non-disclosable pecuniary interests and non-pecuniary interests in respect of items on the Agenda.

Councillors S.Boulton, T.Kingsbury and F.Thomson each declared a non-pecuniary interest in items on the Agenda as Members of Hertfordshire County Council.

Report of the Executive Director (Finance and Transformation) on the revenue outturn position for the financial year 2021/22, outlining the main variances from the original budget for both the General Fund and Housing Revenue Account.

(1)   Cabinet noted the revenue outturn position for 2021/22.

(2)   Cabinet approved the movements on earmarked reserves as detailed in section 3.4 of the report.

(3)   That delegated authority be given to the Section 151 Officer to adjust the 2022/23 budget for items of income and expenditure rolled forward through earmarked reserves.

(4)   Cabinet noted the position on debts set out in section 5 of the report.

Report of the Executive Director (Finance and Transformation) on the revenue outturn position for the financial year 2021/22, outlining the main variances from the original budget for both the General Fund and Housing Revenue Account.

There was a positive outturn in light of the ongoing pressures of the pandemic, with a net surplus on the general fund of £74k.  It was proposed to move to the modernisation reserve to support future transformation projects.

In terms of covid impacts, the net impact was just over £4M. Of this, £2.8M related to business support grants, for which the Council received government grant income for in 2020/21 and set the grants aside in earmarked reserves, so this was fully funded.

The covid reserve of just over £1M, along with sales fees and charges government support in the first quarter of £330k, they covered the income losses such as Campus West and net car parking losses.

Other costs such as additional resources in council tax for support grant and track and trace payments, and environmental health covid officers had all been funded by specific or new burdens grants.  There were some other variances, such as a favourable variance on summons costs where the Council had a backlog of court summons along with net losses on business centres where units had been vacant and the Council had to pick up business rates and property costs for the centre in addition to the lost income.

In terms of non covid variances, there were a number of grants and contributions received which were not fully utilised, such as homelessness funding, and these had been set aside into the grants and contributions earmarked reserves. There were a number of underspends on salaries due to vacancies which partly offset some of the adverse variances.

Some of the key adverse variances to highlight were:

•   Utilities - £474k overspend – this was greater than original assumptions for 2022/23 budget as costs had been continuing to rise at a significant rate.

•   GLL – There was concern around whether they would continue to be able to deliver original savings at the rate expected, and this was bourne out in the adverse variance this year. Officers will be meeting with GLL to discuss this.

•   Garages income was behind by about £80k and it will take time to get occupancy levels up to where they need to be to meet budgeted income.

•   Campus West – It was unclear whether they will get back to previous trading levels which would affect income generation.

There have also been non service variances, including additional income for investments which were linked to capital slippage and rising rates, along with savings on borrowing costs, giving a net £350k saving. The bad debts provision had increased by £175k, which was directly linked to an increase in debts over 90 days. Should these debts be recovered, this would be released back to revenue in future years.

In terms of Housing Revenue Account, the largest variance was in relation  ...  view the full minutes text for item 4.

Report of the Executive Director (Finance and Transformation) on the capital expenditure and associated capital funding for both the General Fund and Housing Revenue Account for 2021/22.

(1)   Cabinet noted the overall capital outturn position and financing for 2021/22.

(2)   Cabinet approved the re-phasing of budgets into 2022/23 as detailed in Appendix A.

Report of the Executive Director (Finance and Transformation) on the capital expenditure and associated capital funding for both the General Fund and Housing Revenue Account for 2021/22.

Whilst the ongoing impact and recovery from covid led to some unavoidable delays on certain projects, they are all still continuing and on track for delivery.  The Council did not have to make any budgetary cuts to the capital programme to date as a result of covid, although the impact of inflation may have cost implications for future projects.

The capital financing had been amended to take into account these re-phased schemes, which meant the year had ended with a lower borrowing position than originally forecast, but the borrowing requirement will increase to the expected levels as these schemes are finalised.

Capital balances on Housing Revenue Account (HRA) were higher than originally estimated due to a higher number of Right to Buys in the year, with over 50 completed compared to the original estimate of 40.

RESOLVED:

(unanimous)

(1)   Cabinet noted the overall capital outturn position and financing for 2021/22.

(2)   Cabinet approved the re-phasing of budgets into 2022/23 as detailed in Appendix A.

Report of the Executive Director (Finance and Transformation) on the review of the treasury management activity and prudential indicators for the 2021/22 financial year.

Cabinet noted the report and actual treasury management prudential indicators for 2021/22.

Report of the Executive Director (Finance and Transformation) on the review of the treasury management activity and prudential indicators for the 2021/22 financial year.

Within the Housing Revenue Account (HRA), overall borrowing was £222.8M at 31 March, 2021, a decrease from £234.4M at the beginning of the year.  Repayment of existing debt exceeded any new borrowing needed to continue to finance the Council’s 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. 

Notwithstanding continued capital expenditure in both the HRA and General Fund, investment balances remained above £26M at year end.  New borrowing was undertaken within the General fund of £20M during the year, locking the Council into advantageous rates, the remainder of the general fund borrowing requirement was internally financed from cash balances.

Returns on the Council’s investments had increased this year with rises to bank rates and a healthy return on the property investment fund, but were still relatively low with an average of 0.47%.

The Council’s liquidity levels have continued to be carefully monitored throughout 2021/22 as the Council entered recovery phases of the Covid pandemic.

RESOLVED:

(unanimous)

Cabinet noted the report and actual treasury management prudential indicators for 2021/22.

Report of the Chief Executive summarising strategic performance data for quarter 4 of 2021-22.

Cabinet noted the contents of the report and approved any proposed actions highlighted in the appendices.

Report of the Chief Executive summarising strategic performance data for quarter 4 of 2021-22.

Members noted that five of the projects reported related to the delivery of the local plan, and all seven will be carried forward into 2022/23.

RESOLVED:

(unanimous)

Cabinet noted the contents of the report and approved any proposed actions highlighted in the appendices.

Report of the Chief Executive on the Council’s key achievements and service improvements of Quarter 4 of 2021-22.

Cabinet noted the report and contents of the Achievements List.

Report of the Chief Executive on the Council’s key achievements and service improvements of Quarter 4 of 2021-22.

The achievements includes significant milestones at Anniversary Gardens in Welwyn Garden City, High View in Hatfield, Minster House, Oak Hill Lawn Cemetery and Crematorium, and the new depot and recycling centre at Tewin Road; Electric vehicle (EV) drivers benefitted from free charging through the Council’s newly operational EV charging points; and the success of the inaugural Youth Awards ceremony at Campus West.

RESOLVED:

(unanimous)

Cabinet noted the report and contents of the Achievements List.

To appoint Cabinet Panels, Committees and Boards for 2022/23.

Cabinet agreed the appointments to Cabinet Panels, Committees and Boards for 2022/23.

To appoint Cabinet Panels, Committees and Boards for 2022/23.

RESOLVED:

(unanimous)

Cabinet agreed the appointments to Cabinet Panels, Committees and Boards for 2022/23.

To appoint representatives to executive outside bodies for 2022/23.

Cabinet agreed the appointments of representatives to executive outside bodies for 2022/23.

To appoint representatives to executive outside bodies for 2022/23.

RESOLVED:

(unanimous)

Cabinet agreed the appointments of representatives to executive outside bodies for 2022/23.