Issue - meetings

Reserves, Provisions and Balances 2020-2021

Meeting: 16/06/2021 - Cabinet (Item 7)

7 Reserves, Provisions and Balances 2020-2021 pdf icon PDF 457 KB

[To report on the Council’s resources currently held as earmarked reserves, provisions and general balances as at 31 March 2021, taking account of the outturn position for 2020-2021][report to follow]

Additional documents:

Decision:

1.     That the transfers (to)/from earmarked reserves, provisions and general balances as detailed in tables 2, 3 and 4 of the report be approved.

 

2.     That expenditure from provisions for their purposes as set out in Appendix 3 and 4 to the report, up to the value held in each provision as at 31 March 2021 be approved.

 

3.     That the delegation of authority to the Leader of the Council, in consultation with the Director of Finance, to allocate funds from the Budget Contingency Reserve, the Recovery Reserve, the Regeneration Reserve, the Efficiency Reserve, the Transformation Reserve, the Development Reserve, the Regional Work Reserve, the Enterprise Zone Business Rates Reserve, the Business Rates Equalisation Reserve, the Treasury Management Equalisation Reserve, the Pension Deficit Recovery Reserve, the Budget Strategy Reserve, the Highways Management Reserve and Community Initiatives and Crowdfund Wolves Reserve be approved.

 

4.     That the delegation of authority to the Cabinet Member for Adults, in consultation with the Directors of Children’s and Adult Services and Finance, to allocate funds from the Adults Reserve be approved.

 

5.     That the level of the Council’s earmarked reserves, provisions and general balances as at 31 March 2021 and the purposes for which they are being held, as detailed in Appendix 1, 2, 3 and 4 to the report be noted.

 

6.     That it be noted that relevance and adequacy of earmarked reserves and general balances would be reviewed as required by the Constitution during the 2022-2023 budget setting process.

 

7.     That it be noted that allocation of funding from all earmarked reserves would be reported to Cabinet (Resources) Panel in the scheduled quarterly budget monitoring reports.  

 

8.     That it be noted that Our Council Scrutiny Panel would scrutinise the use of reserves as part of the budget setting process as in previous years.

 

9.     That it be noted that the Director of Finance considers that the overall level of all reserves, provisions and balances is sufficient to meet the likely level of obligations to be met from reserves, provisions and general balances in the short term.

 

10.  That it be noted that whilst the positive General Fund outturn position during 2020-2021, and the resulting adjustments to reserves, would help to support the Council’s short term financial position, it does not address the challenging financial position that the Council finds itself in over the medium term; namely identifying further projected budget reductions which were estimated at £25.4 million in 2022-2023, rising to £29.6 million over the medium term to 2023-2024 when reported to Full Council in March 2021.  

 

11.  That it be noted that the Covid-19 pandemic has significantly distorted the Council’s financial position and medium-term financial strategy (MTFS). Whilst the Government has made good on its commitment to fund councils to “to do whatever it takes” to address the emergency the economy and social effects of the pandemic will be felt for years to come.  We have no information from Government as to how they will fund councils to  ...  view the full decision text for item 7

Minutes:

Councillor Ian Brookfield presented the report on the Council's resources currently held as marked reserves, provisions and general balances as at 31st of March 2021 taking account of the outturn position for 2020-2021.

 

Resolved:

1.    That the transfers (to)/from earmarked reserves, provisions and general balances as detailed in tables 2, 3 and 4 of the report be approved.

 

2.    That expenditure from provisions for their purposes as set out in Appendix 3 and 4 to the report, up to the value held in each provision as at 31 March 2021 be approved.

 

3.    That the delegation of authority to the Leader of the Council, in consultation with the Director of Finance, to allocate funds from the Budget Contingency Reserve, the Recovery Reserve, the Regeneration Reserve, the Efficiency Reserve, the Transformation Reserve, the Development Reserve, the Regional Work Reserve, the Enterprise Zone Business Rates Reserve, the Business Rates Equalisation Reserve, the Treasury Management Equalisation Reserve, the Pension Deficit Recovery Reserve, the Budget Strategy Reserve, the Highways Management Reserve and Community Initiatives and Crowdfund Wolves Reserve be approved.

 

4.    That the delegation of authority to the Cabinet Member for Adults, in consultation with the Directors of Children’s and Adult Services and Finance, to allocate funds from the Adults Reserve be approved.

 

5.    That the level of the Council’s earmarked reserves, provisions and general balances as at 31 March 2021 and the purposes for which they are being held, as detailed in Appendix 1, 2, 3 and 4 to the report be noted.

 

6.    That it be noted that relevance and adequacy of earmarked reserves and general balances would be reviewed as required by the Constitution during the 2022-2023 budget setting process.

 

7.    That it be noted that allocation of funding from all earmarked reserves would be reported to Cabinet (Resources) Panel in the scheduled quarterly budget monitoring reports. 

 

8.    That it be noted that Our Council Scrutiny Panel would scrutinise the use of reserves as part of the budget setting process as in previous years.

 

9.    That it be noted that the Director of Finance considers that the overall level of all reserves, provisions and balances is sufficient to meet the likely level of obligations to be met from reserves, provisions and general balances in the short term.

 

10. That it be noted that whilst the positive General Fund outturn position during 2020-2021, and the resulting adjustments to reserves, would help to support the Council’s short term financial position, it does not address the challenging financial position that the Council finds itself in over the medium term; namely identifying further projected budget reductions which were estimated at £25.4 million in 2022-2023, rising to £29.6 million over the medium term to 2023-2024 when reported to Full Council in March 2021. 

 

11. That it be noted that the Covid-19 pandemic has significantly distorted the Council’s financial position and medium-term financial strategy (MTFS). Whilst the Government has made good on its commitment to fund councils to “to do whatever it  ...  view the full minutes text for item 7