Issue - meetings

The Finance Business Partner presented a report to the Committee on the corporate budget, covering the period April - June 2020. She said the main points to note were a broadcast overspend of £100,000 against the revenue budget, and a predicted carry forward of £100,000 against the capital budget. Members were briefly talked through the remainder of the report. Specifically, the financial impact of COVID-19 was mentioned, such as in the reduction in rental income and expected interest income.

The Chairman queried:

·                    how rental incomes had been affected by COVID-19;

·                    whether the review of capital projects would be seen by the Executive;

·                    possible changes to the income generated from curb-side recycling, as he was under the impression that the Council had fixed prices it received for materials as part of a contract.

The Finance Business Partner said rental income was currently down 20% and this would continue to be monitored by Officers. The review of the capital projects in view of COVID-19 would be seen by the Executive. She referred to the fact that the Council had entered into contracts for waste disposal, but drew Members’ attention to the fact that the prices the Council received for the materials were subject to changing market values.

The Incoming Head of Strategic Finance and Property said that volatility in the market for recycled materials had increased recently.

Councillor Ward-Booth asked what type of debt the Council was pursuing from aged debtors and how this was being pursued.

The Finance Business Partner said that she could provide detailed information following the meeting, but she believed this was made up of a large number of smaller debts.

The Interim Head of Strategic Finance and Property said the debt included a significant debt stemming from a shared leisure provision agreement with a school in the district. Recovery was likely to be pursued via arbitration and potentially in the courts, and was likely to account for around £200,000 of the debt. The position had changed since the production of these statistics, as they included a £238,000 section 106 debt which had now been cleared.

The Chairman asked whether it was anticipated that there would be more defaults from residents on their council tax accounts, in view of the financial impact of COVID-19.

The Interim Head of Strategic Finance and Property said that this prospect seemed inevitable, but there had not been a significant increase yet.

Councillor Huggins asked if this were to happen, how long it would take for Councillors to be made aware of any change.

The Interim Head of Finance and Strategic Property said that the Revenue and Benefits Shared Service produced quarterly reports, so it should be evident fairly quickly if the collection rate decreased.

RESOLVED – that (A) the net revenue budget forecast overspend of £100,000 in 2020/21 be noted; and

(B)   the revised capital budget be noted.