Issue - meetings

This report requests Council approval for additions to the Capital Programme as recommended by Cabinet on 11 June 2024.

Background:

This report requested Council approval for additions to the Capital Programme as recommended by Cabinet on 11 June 2024.

The Leader of the Council, Councillor Maple, supported by the Portfolio Holder for Business Management, Councillor Van Dyke, proposed the recommendations set out in the report.

Decisions:

The Council agreed the following additions to the capital programme, as set out in sections 4 and 5 of the report:

i)      £430,000 to the capital programme to fund the overspend reported on the Operational Depot scheme, to be funded by Prudential Borrowing, and

ii)     £4,655 to the capital programme to fund the overspend on the Mountbatten House Purchase scheme, to be funded from borrowing in advance of the capital receipts expected from the sale of the building to Medway Development Company.

Background:

This report provided details of the final revenue and capital outturn position for the financial year ended 31 March 2024. The report stated that these figures would form part of the Council’s Statement of Accounts, which would be considered by the Audit Committee following completion of the External Audit.

The report advised that, at its meeting on 23 February 2023, the Council had set a total budget requirement of £388.269million for 2023/24. Since then, additional grant funding had been announced, primarily the Household Support Fund, Holiday Activity Fund, Market Sustainability and Improvement Fund (Workforce Fund) and Start 4 Life funding and the final allocations for Schools funding and the Public Health Grant had been confirmed. The net impact of these amendments took the final revenue outturn budget requirement to a total of £382.094million.

It was noted that the Council would still need to make diffcult decision as it continued as it delivered the One Medway Financial Improvement and Transformation Plan.

The capital programme for 2023/24 and beyond had also been agreed by Council on 23 February 2023. The agreed value was £429.563million with additions and removals made during the year resulting in a final capital outturn budget of £319.537million. The report also recommended that the Cabinet recommend to Council two additions to the Capital Programme.

The report also presented a summary of debts written off during the 2023/24 financial year, in line with the constitutional requirement to submit a report to Cabinet on an annual basis setting out details of all debt written off. A total of £3,161,000 had been written off during 2023/24.

Reasons:

Full Council is responsible for agreeing a balanced budget in advance of each financial year. Cabinet is responsible for ensuring that income and expenditure remain within the approved budget. 

The transfer of reserves from earmarked to general reserves will enable the Council’s general reserve balance to return to a position above the minimum level of £10million set by the Section 151 Officer, once the overspend on the 2023/24 outturn has been funded.