Agenda item

The report of the Executive Manager – Finance and Corporate Services is attached.

It was RESOLVED that:

a)    The 2018/19 revenue position and efficiencies identified in Table 1 be noted, and the associated changes to the earmarked reserves as set out in paragraph 4.5 Supporting Information and Appendix B be approved;

b)    The re-profiled position on capital be noted and the capital carry forwards outlined in Appendix Cand the additional spend required for the project outlined at paragraph 4.8 (including the commercial loan of £400k to Streetwise and £100k for works to Cotgrave Leisure Centre) be approved; and

c)    The update on the Cricket Club loan in Section 5 be noted.

The Portfolio Holder for Finance and Contracts presented the report of the Executive Manager – Finance and Corporate Services setting out the year-end financial outturn position for 2018/19, linked to the closure of the accounts process and previous financial update reports.

The Portfolio Holder for Finance and Contracts advised that the report represented the final outturn position for the 2018/19 accounts and related to the Council’s financial statement which had been signed off in draft form by the Executive  Manger – Finance and Corporate Services on 31 May 2019 and would be finally signed off by the Governance Scrutiny Group on 23 July 2019.

The Portfolio Holder for Finance and Contracts stated that the overall report presented a positive financial position for the Council in a very challenging financial environment.  The overall revenue position showed a transfer to reserves of £1.3m against a projected transfer of just over £1m.  The overall variation of £220,000 represented a relatively small 2.06% of the net budget.  The report highlighted key areas of underspend and those amounts were recommended to be carried forward to 2019/20.  The Council had assisted 243 local businesses with discretionary rate relief of over £193,000.  Overall, whilst the level of earmarked reserves was a healthy £11.82m, there were significant risks going forward both locally with the future decommissioning of the power station and also nationally.  In respect of the Capital Programme 2018/19 outturn, there was an £18m underspend against the £24.7m which had been predicted throughout the year, with most of that being carried forward, as schemes continued, with asset investment remaining as a high priority.  The most significant area of capital underspend was £9.561m on Council asset investments, with £4.8m of that sum already committed on known investments.  The Council had agreed to pause on such investments in the future, to allow it to focus more on assets in the Borough.  One investment undertaken was the continuation of the loan to Nottinghamshire County Cricket Club that had enabled the club to develop the venue, which as an international sports ground continued to bring in considerable income to the Borough.

In seconding the recommendation, Councillor Upton referred to the strong financial outturn for 2018/19 that illustrated the sound financial management of the Council, in particular the increased transfer to the reserve.  The support given to the 243 businesses was also very positive.

Councillor Robinson referred to the timeliness of the loan to Nottinghamshire County Cricket Club.  The use of the venue for the current Cricket World Cup continued to highlight the venue’s importance on the world stage and provide significant economic benefits to the local community and the Council’s pivotal role in that was acknowledged.

Councillor Robinson referred to the challenging financial environment and stated that the Council remained debt free, which was a considerable achievement.

It was RESOLVED that:

a)    The 2018/19 revenue position and efficiencies identified in Table 1 be noted, and the associated changes to the earmarked reserves as set out in paragraph 4.5 Supporting Information and Appendix B be approved;

b)    The re-profiled position on capital be noted and the capital carry forwards outlined in Appendix Cand the additional spend required for the project outlined at paragraph 4.8 (including the commercial loan of £400k to Streetwise and £100k for works to Cotgrave Leisure Centre) be approved; and

c)    The update on the Cricket Club loan in Section 5 be noted.

Reason for Decision

To accord with good financial governance and the Council’s Financial Regulations.