Issue - meetings

Consideration was given to report of the Chief Officer Resources.

The Chief Officer Resources presented the report which provided the forecast reserves position for 2019/20 as at Quarter 3 (31^st December, 2019).

The Officer went through the report and highlighted points contained therein.  She confirmed that the forecast position at year-end 2019/20 was an increase of £0.185m to £6.079m which represented 4.54% of net revenue expenditure, and £0.718m above the 4% target level of £5.361m.  This increase indicated some progress towards strengthening the financial resilience of the Council and allowed a buffer to deal with unexpected future issues.

This increase was due to £117k contribution as agreed by Council during the 2019/20 budget setting process; and £132k reduction in the Fire Service Precept charge following additional funding from Welsh Government for the increase in employer’s pension contributions.

The Officer concluded that as a result of the positive provisional settlement, the Council had approved an increase to Reserves in excess of £1.5m for 2020/21 to support medium term financial planning and strengthening the Council’s financial resilience.

Members commended the report.

The Committee AGREED to recommend that the report be accepted and:

     i.        Noted the planned forecast increase of General Reserve to 4.54% (above the 4% target level) for 2019/20 and future years strengthening the Council’s Financial Resilience;

    ii.        Noted the impact the £0.064m forecast adverse variance for 2019/20 would have on the General Reserve target; and

  iii.        Continue to challenge budget overspends and implement appropriate Service Action Plans, where required.