Agenda item

Chief Financial Officer Report - 2018/19 Revenue and Capital Outturn


The Chairman introduced the report, which was presented by the Director of Finance, Anisa Darr and the Deputy Director of Finance, Paul Clarke.


Mr Clarke summarised the key points set out in the report.


Following a query about long-term loans, Officers noted that the total value of long-term loans to the Council as at 31 March 2019 was £304m and agreed to include in future reports, draw-downs of loans by the Council to third parties which are recorded in the accounts under short-term investments alongside long-term loans. (Action: CFO Report)


The Committee requested that Officers include the gross position in relation to outstanding debtors. (Action: CFO Report)


Following a comment from the Committee about making additional contributions to the Pension Fund, Officers informed Members that currently discussions are being held with Hymans as part of the tri-annual evaluation about pension contribution rates.


Officers spoke about that in the eventuality that the Authority pre-paid employee contributions rates for the coming 3-year period the Authority would have the benefit of the discount rate being higher than the borrowing rate and additional funding would be available for the Pension Fund for investment purposes.


In response to a comment about the underspend for Street Lighting, which was £324K due to cost saving actions taken, the Committee noted that the Environment Committee has recently approved a programme of works to replace Street Lighting with energy saving LED lighting.


It is anticipated that the programme of work will take approx. a year to be completed. The level of spend will continue to be reported to this Committee for monitoring purposes.


The Chairman and Councillor Levine requested an update from Officers in respect of the income from Libraries, the target commitment which was set and the current achievement against that target. (Action: Finance/ Estates) 


The Committee noted the overall position in relation to the Children’s Service budget, which is offset by the use of £2.3m one-off funding.


In response to concerns expressed by the Committee over ongoing pressures, Officers noted that future data for Q1 will inform plans to meet ongoing pressures and that some pressures remaining at the end of the year were recognised during the 2019/20 budget setting process.


In respect of the Community Infrastructure Levy (CIL) Reserve funding it was agreed that a breakdown of CIL spent over the last 2 years and current annual projected budget be circulated to the Chairman and Councillor Levine. (Action: Finance)


Following a comment from the Committee about the level of debt, it was noted that this information is a snapshot as at that date and the position is updated on a daily basis as payments are made.


Officers informed Members about the reduction in the overall level of debt and spoke about the work of the Debt Board and its aim to work strategically with organisations towards reducing the level of outstanding debt.


The Committee asked about the actions taken to address outstanding debt owed for more than 90 days – Officers informed that actions include seeking expert legal advice and mediation discussions with debtors in order to expedite recovery. The Committee requested an update about Comer Homes debt and any associated dispute resolution. (Action: Forward Work Programme)


It was unanimously RESOLVED:


1.     The Committee noted the 2018/19 revenue outturn, as detailed in Table 2 and Appendix A;

2.     The Committee noted the savings delivered in 2018/19, as detailed in Table 6;

3.     The Committee noted the level of reserves and balances as detailed in Table 11;

4.     The Committee noted the 2018/19 capital outturn, as detailed in Table 7 and in Appendix B;

5.     The Committee noted the treasury position outlined in section 4.

6.     The Committee noted the debtors position outlined in section 5.


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